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Outrage Erupts as Newsom-Backed Bill Targets Burned L.A. Homes for Redistribution [WATCH]

Residents in parts of Los Angeles County expressed frustration and anger this week after the California State Senate passed Senate Bill 549, a measure that would establish a new government authority to purchase fire-damaged properties for low-income housing development.

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The bill, introduced by State Sen. Ben Allen (D-Santa Monica), passed Tuesday and now moves to the State Assembly for consideration.

The legislation, if enacted, would authorize the County of Los Angeles to create a “Resilient Rebuilding Authority” with the power to collect local property taxes under specific conditions.

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According to the bill’s language, at least 40 percent of the total funds collected must be used “for the acquisition, construction, or rehabilitation of housing, including the costs of predevelopment and land acquisition, for households with incomes below 60 percent of area median income for rent or purchase.”

The bill follows significant fire damage in the region caused by the Palisades Fire and the Eaton Fire earlier this year. In response to those disasters, Los Angeles County Supervisor Lindsey Horvath established a “Blue Ribbon Commission” to evaluate rebuilding strategies.

The recommendation to form the new authority stemmed from that commission’s work.

However, the process has drawn criticism from local residents, many of whom say they were blindsided by the sudden proposal.

Community members have also raised concerns over the transparency of the Blue Ribbon Commission, which reportedly met behind closed doors and released the proposal without public notice.

“Absolutely insane proposal to further screw our neighbor. When will we stop voting for these dangerous people and wake up?!?” one resident posted on a neighborhood forum.

Another wrote, “I have no problem with middle income living in newly constructed apartments. I grew up working class and lived among teachers, insurance salespeople, small business owners and other hard-working people. We all had a hard work ethic and were respectful to each other. That is a lot different than what current politicians are proposing for the area.”

Just one week before the bill passed the Senate, California Governor Gavin Newsom allocated $101 million in state funds for low-income housing development in the fire-affected zones.

The timing of the bill’s passage and the funding announcement has further fueled suspicion among some homeowners, many of whom are still struggling to rebuild due to underinsurance or insurance policy cancellations that occurred before the fires.

Several residents have blamed state-imposed restrictions on premium increases for driving insurers out of the market.

The Center Square reported that, under current guidelines, projects categorized as “Supportive Housing Multifamily Housing” must dedicate at least 40 percent of units to individuals who are homeless or have spent at least 15 days in facilities such as jails, hospitals, prisons, or mental health institutions.

This provision has raised additional concerns from residents, some of whom allege that state and local authorities have been slow to approve rebuilding permits in an effort to force original property owners to sell.

They argue that this would allow the state to acquire land for redistribution to lower-income populations, including migrants.

The debate over low-income housing in high-value areas like Pacific Palisades is not new.

Opponents of the current bill have pointed out that the community already had forms of affordable housing, including a trailer park and fixed-income homeowners who purchased property decades ago.

SB 549 now heads to the California State Assembly.

If approved, it is expected to be signed into law by Gov. Newsom.

The measure aligns with ongoing efforts by the Newsom administration to expand low-income housing and may also reflect broader political calculations as the governor is viewed as a potential candidate for the 2028 Democratic presidential nomination.



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