California Senate Passes Bill to Allocate $101 Million for Low-Income Housing on Fire-Destroyed Lots

The California Senate has approved a significant bill, Senate Bill 549, that would enable Los Angeles County to acquire fire-destroyed properties for the development of low-income housing. This legislative action follows devastating wildfires, including the Palisades, Eaton, and Hughes fires, which displaced thousands of residents and destroyed numerous homes across Los Angeles County. The bill aims to accelerate recovery efforts and address the region's pressing affordable housing crisis.

Authored by Assemblywoman Luz Rivas, SB 549 establishes "Resilient Rebuilding Authorities" (RRAs) that would be funded through property taxes and other mechanisms. These authorities would be empowered to purchase fire-damaged lots at fair prices, manage construction logistics, and facilitate the rebuilding process. A key provision mandates that at least 40% of the RRA's funding must be dedicated to building low-income housing.

Governor Gavin Newsom has already announced an allocation of $101 million in taxpayer funds to support "multifamily low-income housing development" in the affected areas. This funding, providing up to $450,000 in loans and $90,000 in grants per unit, is intended to jumpstart the construction of affordable housing where single-family homes once stood. The initiative specifically targets the reconstruction of lost rental housing stock, senior-serving housing, and replacement of affordable units.

Areas such as Pacific Palisades, Altadena, and Malibu were severely impacted, with thousands of structures destroyed in the January 2025 wildfires. Governor Newsom stated, "Los Angeles has taken significant steps to rebuild after January’s fires, but the devastation is significant and there remains a long road ahead." He added that funding the bill would "accelerate the development of affordable multifamily rental housing so that those rebuilding their lives after this tragedy have access to a safe, affordable place to come home to."

Tomiquia Moss, Secretary of the California Business, Consumer Services and Housing Agency, emphasized that the legislation will "accelerate household stability, climate, and health outcomes" in the affected communities. The bill, which passed the State Senate, is now scheduled for a hearing in the California State Assembly, marking a crucial step towards its potential enactment. The measure represents a strategic effort to leverage disaster recovery into long-term housing solutions for low-income residents.