Californians affected by the fires that have burned through Los Angeles County for over seven days now will be protected from predatory real-estate investors under a new order signed by Governor Gavin Newsom.
The Democrat issued an executive order on Tuesday, which will allow the Golden State to hold predatory land speculators “making aggressive and unsolicited cash offers” to wildfires victims accountable “through stronger enforcement and prosecution,” according to a press release.
Newsweek contacted Newsom’s office for comment by email on Tuesday and was directed to its official press release.
Why It Matters
Firefighters continue to battle multiple wildfires in California more than a week after the Palisades and Eaton fires started on January 7. Together, the two fires alone have burned through more than 37,800 acres, destroying thousands of structures, including homes and well-known landmarks. Thousands more structures remain under threat as the fires were only partially contained as of Tuesday night.
For those who have lost their homes, the recovery process appears challenging: the blazes are estimated to be the largest wildfire insured loss in U.S. history. The situation could be made worse by the predatory actions of real-estate investors and landlords, whether that’s making undervalued offers to those who have lost everything or price gouging in the rental market.
What To Know
A few days before issuing Tuesday’s executive order, Newsom had told Fox 11 in an exclusive interview that he had talked with Hawaii Governor Josh Green about taking action against land grabbing in the areas affected by the fires.
After the fire on the Hawaiian island of Maui in August 2023, residents who survived the blazes reported receiving calls from real estate investors trying to purchase their homes. The offers threatened to uproot families who had resided in Maui for generations at a time when any cash offer would have been welcome to help them rebuild their lives.
Such predatory actions, according to Newsom, are being reported by Californians who have lost their homes to the fires. To prevent land grabbing and speculation on the ongoing tragedy, Newsom has modeled his executive order on a similar one issued by Green to protect Hawaiians after the wildfire in August 2023.
How Does the New Order Protect Wildfire Victims?
The executive order is designed to protect residents of the ZIP codes in Los Angeles County that were hit hardest by the fires. These include: 90019, 90041, 90049, 90066, 90265, 90272, 90290, 90402, 91001, 91040, 91104, 91106, 91107, 93535, or 93536. The community of Altadena, where the Eaton fire destroyed thousands of family homes as well as businesses, places of worship, and cultural centers, is covered by the order.
Under the legislation, making any unsolicited offer to an owner of real property located in these areas “to purchase or otherwise acquire any interest in the real estate property for an amount less than the fair market value of the property or interest in the property on January 6, 2025″ is forbidden for three months from January 14.
The state’s Department of Real Estate is required to inform authorities of any violations to the order.
What People Are Saying
California Governor Gavin Newsom said on Tuesday in a statement accompanying the new order: “As families mourn, the last thing they need is greedy speculators taking advantage of their pain. I have heard firsthand from community members and victims who have received unsolicited and predatory offers from speculators offering cash far below market value—some while their homes were burning.
“We will not allow greedy developers to rip off these working-class communities at a time when they need more support than ever before.”
Los Angeles City Councilwoman Traci Park said on Tuesday: “As you can imagine, [the fires] have had a traumatic and life changing impact on thousands of lives. [ …] Our singular goal must be to ensure that residents have the resources they need to rebuild their lives and come home.”
What’s Next
As of Tuesday night, at least 25 people have been confirmed dead in the Eaton and Palisades fires, while 13 remain missing. Nearly 90,000 people remained under evacuation orders.
Dangerous winds that started to rise overnight are expected to peak on Wednesday morning, making firefighters’ efforts to contain the flames more challenging.
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