Survivors of the deadly Eaton Fire and local officials on Tuesday called on Southern California Edison to pay for rental housing as many displaced Altadena residents struggle with disaster recovery.
A coalition of fire survivors, activists, elected officials and area residents gathered nearly a year after the January wildfire to warn that recovery has stalled because families are struggling to stay housed. According to the Eaton Fire Survivors Network, Edison bears financial responsibility because the utility’s equipment sparked the blaze.
According to research by the fire-survivor advocacy nonprofit Department of Angels, 8 in 10 families affected by the Eaton Fire remain displaced with most running out of housing funds.
In addition to the Eaton Fire Survivors Network, the coalition includes the Eaton Fire Collaborative Leadership Council, the Clergy Community Coalition and the Altadena Town Council, along with support from the California Community Foundation. The groups represent more than 10,000 survivors, over 200 nonprofit organizations, more than 150 faith leaders and the 40,000 residents of Altadena, where the fire did the most damage.
“We are not here in anger. We are here in love for our community,” EFSN Executive Director Joy Chen said in a statement. “When a company’s fire destroys or contaminates homes, that company has a responsibility to keep families housed until they can get back home.”
The survivors group is asking Edison to immediately provide temporary housing support against obligations it already owes, describing the situation as a cash-flow problem — Edison has millions in liquid cash and taxpayer-funded protections, while options for displaced residents are dwindling. Families say they have received no housing assistance from Edison, according to the EFSN.
“Every other California investor-owned utility advanced emergency housing relief after causing a wildfire, even without these protections,” Chen said. “Through the Wildfire Fund, state-approved rate hikes, and nearly one billion dollars in back pay, Californians have absorbed Edison’s wildfire risk. Edison is reporting sharply higher profits, while survivors — who are also ratepayers — are bearing the cost of this fire in real time.”
SCE spokesman David Eisenhauer defended the utility’s efforts to help with recovery from the wildfire.
“We are fully committed to helping the Altadena community recover,” Eisenhauer said. “We understand people and businesses impacted by the Eaton Fire are eager to move forward and SCE’s Wildfire Recovery Compensation Program offers a way to help them do that — with fair resolutions and fast payments. Funds in SCE’s WRCP can be used for interim housing. We encourage people to apply and see their offers. In moments like this, Edison’s role is clear: Help people recover and move forward. That’s what our neighbors expect.”
Citing a Los Angeles Times investigation, the EFSN noted that the utility has been allowed to shift the full cost of settlements above the Wildfire Fund onto ratepayers. State law gives Edison control over what it pays survivors and ensures the company has the financial support to do that without delay, group members said. Nothing in that system prevents Edison from advancing housing support now.
In October, state regulators OK’d a rate increase expected to generate nearly $1 billion annually for Edison, along with close to $1 billion in retroactive payments. The result has been sharply higher profits for the company as displaced survivors run out of money for housing, according to the EFSN.
Fire-driven rent hikes
Prior to the wildfire, Altadena was one of the region’s more affordable communities, with average rents around $1,792 and county rent stabilization helping limit sudden increases, according to the Eaton Fire Collaborative Housing Impact Survey. But after the fire sharply reduced the local housing supply, displaced residents were at the mercy of one of the nation’s tightest rental markets, where the cost of housing doubled or tripled in the months following the fire.
Department of Angels research shows that most survivors are still in temporary or unstable housing because post-fire rents exceed what they’re able to afford. More than 1 in 3 families are expected to be forced into another move within months as remaining housing funds run out.
“The Eaton Fire collapsed the housing market our community depended on,”Lisa Odigie, a total-loss survivor and leader of the Eaton Fire Collaborative, said in a statement. “Before the fire, rents averaged around $1,800 a month. After the fire, they jumped to $4,000 to $6,000 — before deposits, duplicate utilities, storage, transportation, and childcare. Most renters and more than half of homeowners simply cannot afford today’s market.”
Closing the housing gap
Edison’s Wildfire Recovery Compensation Plan is the utility’s program for compensating fire survivors outside of the court system. Two analyses by survivors found that the WRCP is not designed to keep families housed or move recovery forward. The reviews concluded that the plan excludes renters, smoke-damaged households and others, relies on pre-fire assumptions that do not reflect post-fire reality and provides rent assistance well below current market rates.
“The plan requires families to permanently waive their legal rights in order to access housing assistance,” EFSN Stategy Director Andrew Wessels said in a statement. “That is not a path to recovery. If families are pushed to give up what they are owed just to survive, the recovery will never have the funds required to rebuild homes, restore livelihoods, or stabilize the community.”
The Department of Angels’ research also points to the broader impact of prolonged displacement — 43% of survivors report depleting most or all of their savings, 41% have new debt and 73% report worsening mental health because of repeated moves and overall uncertainty.
State Sen. Sasha Renée Pérez, D-Pasadena said emergency housing relief for fire survivors must be separate from long-term compensation.
“There should be no strings attached to providing much-needed emergency housing to Eaton Fire survivors who are still displaced and suffering trauma,” Pérez said in a statement. “Emergency housing relief must be kept entirely separate from any settlement process. While SCE’s program includes funds for temporary housing, it’s limited and inadequate. Survivors should never be forced to choose between having a safe place to live and preserving their legal rights.
“When families are required to permanently waive their legal rights just to access housing, the recovery loses the funds needed to rebuild,” Pérez added. “Housing relief should meet immediate needs without sacrificing the future.”
The survivors coalition wants SCE to provide temporary housing support without legal waivers to keep residents housed until they can safely return home, organizers said.
The Eaton Fire erupted Jan. 7 amid extremely fast winds. SCE is facing serval lawsuits claiming one of the company’s power lines ignited the blaze in Eaton Canyon that killed 19 people and destroyed or damaged more than 10,000 structures.