Newsom announces $107M for LA fire survivors’ rental housing

An Altadena neighborhood lies in ruins following the January Eaton Fire. An Altadena neighborhood lies in ruins following the January Eaton Fire.
An Altadena neighborhood lies in ruins following the January Eaton Fire. | Photo courtesy of Supervisor Kathryn Barger's office

The state is providing $107.3 million to build 673 affordable rental homes prioritized for survivors of wildfires in Los Angeles County, officials said Tuesday on the eve of the devastating blazes’ one-year mark.

Gov. Gavin Newsom announced the spending for affordable housing countywide, though one of the projects are in the burn scar areas and will not replace destroyed homes.

“We are rebuilding stronger, fairer communities in Los Angeles without displacing the people who call these neighborhoods home,” Newsom said in a statement. “More affordable homes across the county means survivors can stay near their schools, jobs and support systems, and all Angelenos are better able to afford housing in these vibrant communities.”

According to the governor’s office, the intent is to keep residents housed and prevent further displacement without altering local zoning rules or neighborhood character.

The funding source is a Multifamily Finance Super NOFA, or notice of funding application last February from the California Department of Housing and Community Development. The department later put out another NOFA for disaster-affected communities in the Los Angeles area.

To help expedite the construction of homes to replace those lost in the fires, the super NOFA for LA County’s disaster-impacted areas allowed developers in local jurisdictions to ask for funding from multiple state housing programs via a single application.

This infusion of housing funds is for:

  • the 100-unit Romona Seniors and 44-unit Colorado Crest Apartments in Pasadena;
  • the 80-unit Tierra Apartments in Santa Monica;
  • the 40-unit US Vets-WLAVA Building;
  • the 176-unit Crenshaw Crossing in Los Angeles,
  • the 43-unit La Guadalupe in LA;
  • a 50-unit apartment complex at 15804 Lakewood Blvd. in Bellflower;
  • a 59-unit senior apartment complex at 233 N. Second Ave. in Covina; and
  • the 73-unit Mercy Claremont in Claremont.

A statewide Multifamily Finance Super NOFA in September provided nearly $56.9 million for four other projects with 301 affordable rental homes in Los Angeles County. Combined, the broader and disaster-specific NOFAs provided 974 new affordable homes with construction on the horizon.

State housing Director Gustavo Velasquez said in a statement his agency “continues to prioritize fire survivors at our properties throughout the Los Angeles region, and we look forward to seeing these additional homes brought to completion as soon as possible. We are proud to support this administration in its focused efforts to help residents find stability in the face of unimaginable tragedy.”

Newsom has issued directives calling for fire survivors to receive priority placement on affordable housing waiting lists in an attempt to protect them from suddenly losing housing when temporary assistance and money from insurance payouts run out.

“Los Angeles residents faced a tight rental housing market even before these unprecedented wildfires forced thousands from their homes and compounded the problem,” Secretary Tomiquia Moss, who leads the California Business, Consumer Services and Housing Agency, said in a statement. “This administration has used every tool at its disposal to support Los Angeles jurisdictions as they navigate long-term recovery, and these new affordable homes will help nearly a thousand households obtain stable housing.”

Municipalities processing applications for wildfire rebuilding projects

Officials in LA County and local cities are reviewing building applications and issuing permits while insurers have paid more than $22.4 billion to rebuild wildfire areas destroyed or damaged in Pacific Palisades which is part of the city of Los Angeles, Malibu, Pasadena and Altadena, many parts of which are unincorporated county territory.

The Palisades Fire destroyed a majority of the coastal neighborhood. Similarly, the Eaton Fire in Altadena claimed thousands of homes and many schools, places of worship, restaurants and community focal points.

Estimates for property and capital losses range between $11 billion and $76 billion, with insured loses at about $45 billion, according to the UCLA Anderson Forecast last updated in March.

Despite local, county and state officials’ moves to speed up the permit application process, rebuilding efforts are experiencing delays as a result of rising costs and challenges fire survivors face in their dealings with insurance companies, among other issues. Survivors in Pacific Palisades and in Altadena have criticized the city of Los Angeles and county for not doing more to streamline permitting that in turn helps expedite the start of construction work.

Data as of this week shows:

  • Pasadena officials have received 66 complete applications, are currently reviewing 41 applications, have approved one plan review, issued 23 permits and finalized one rebuild of a residential building;
  • Malibu city officials issued 490 building permits for damages, repairs, debris removal and structures such as garages or outbuildings. The city has OK’d 184 planning approvals for all application types. A total of 142 applications were approved by planning officials, and another 64 are under review. Another 42 building plans have been submitted for review, and 22 building permits have been issued. No certificates of occupancy have been issued, officials reported in Malibu’s online rebuild dashboard;
  • Los Angeles has received 3,072 applications for rebuilding with 1,399 unique addresses in and around Pacific Palisades, officials reported in the city’s online tracker. Currently, 1,288 plans are under review and 1,784 building plans have received approval. City officials have issued 1,446 permits for construction, of which 688 are unique addresses. The city has issued two certificates of occupancy; and
  • LA County has received 2,899 rebuild applications and cleared 2,473 zoning reviews, reflecting rebuilding work in Altadena and unincorporated areas near Pacific Palisades. County officials also reported 1,871 land parcels with full building plans. A total of 1,460 building plans have been finalized and approved, and 1,191 building permits have been issued. New residential construction projects total 545. The county has reported seven completed construction projects and issued one certificate of occupancy in December to 67-year-old Ted Koerner, who rebuilt his Altadena home.

Amid the rebuilding efforts, the California Department of Insurance reported Dec. 31 that insurance companies have paid more than $22.4 billion to Southern California fire survivors. Insurance payouts are nearly 80% of the funding for overall recovery work.

“Our experience over many past disasters shows recovery is multifaceted and requires a coordinated effort,” Insurance Commissioner Ricardo Lara said in a statement. “Insurance is the first to pay, but more money from federal, state, and local governments, plus private charities, is needed for a speedy and successful recovery. Our dedicated department experts are enforcing laws to ensure that claims are processed fairly, quickly, and responsively, allowing homeowners to recover on their own terms.”

An estimated 42,121 insurance claims have been filed for home, business, living expenses and other disaster-related needs, according to the Insurance Department. About 39,677 claims were partially paid under laws requiring advance payments to speed recovery.

On Jan. 7, 2025, fires erupted in the LA area fueled by dry weather and extreme Santa Ana winds. The two largest fires displaced thousands of residents in Pacific Palisades and Altadena.

The Palisades Fire killed 12 people in the Pacific Palisades, Malibu and Topanga areas, while the Eaton Fire in Altadena killed 19. Firefighters fully contained the dual blazes on Jan. 31, 2025.

Newsom proclaims Wednesday as Day of Remembrance for LA wildfires

Gov. Gavin Newsom has issued a proclamation declaring Wednesday’s anniversary of the Palisades and Eaton fires as a day of remembrance and ordering flags at all state buildings to be flown at half-staff.

“As we mourn the victims of the Los Angeles fires, we also honor the first responders, community leaders and public servants who ran toward danger and went above and beyond to protect Angelenos,” the proclamation, announced Tuesday, reads.

“We recognize the resilience of survivors who continue to rebuild, often carrying grief alongside hope.

“And we affirm a solemn commitment: California will not turn away. We will stand with these communities until recovery is complete, homes are rebuilt and lives are restored as fully possible.

“Today, California remembers and honors those 31 people, grieving with their families and friends. We carry their memory forward, alongside the memory of all Californians lost to wildfires over the years, including those who perished in the Tubbs, Camp, and the North Complex fires,” the governor proclaimed. “Their memory continues to shape our collective resolve today.”

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