California Governor Gavin Newsom is stepping in to protect homeowners affected by the Palisades, Eaton, Hurst, Lidia, Sunset, and Woodley wildfires from unsolicited land offers. Newsom issued Executive Order N-7-25, which prohibits speculators from making “aggressive, unsolicited and undervalued” cash offers to homeowners across 15 Los Angeles ZIP codes for 90 days from Jan. 6.
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California Governor Gavin Newsom is stepping in to protect homeowners affected by the Palisades, Eaton, Hurst, Lidia, Sunset and Woodley wildfires from unsolicited land offers. Newsom issued Executive Order N-7-25, which prohibits speculators from making “aggressive, unsolicited and undervalued” cash offers to homeowners across 15 Los Angeles ZIP codes for 90 days from Jan. 6.
If a speculator violates the order, they can face misdemeanor charges that carry a $1,000 fine and up to six months in jail.
Gavin Newsom | Credit: LinkedIn
“As families mourn, the last thing they need is greedy speculators taking advantage of their pain,” Newsom said in a written statement. “I have heard first-hand 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.”
Newsom said Los Angelenos have flooded his office with reports of land speculators targeting homeowners, especially in Altadena. Altadena’s history stretches back to the 1850s; however, the community became a haven for Black and Hispanic homebuyers in the 1960s and 1970s when white homeowners moved to other areas of LA amid desegregation and redevelopment conflicts.
Land speculators have flocked to this area in particular to make undervalued offers to an aging population of homeowners.
“The diverse and vibrant community of Altadena has been especially hard-hit by this disaster, with the Eaton Fire damaging or destroying large swathes of the community, including much of the downtown area, numerous places of worship and cultural centers, countless business, and likely thousands of family homes,” the order read.
“Recovery from this disaster requires more than just rebuilding homes, structures, and the physical infrastructure that has been lost, but also entails preservation of community ties and the culture that grew and flourished in neighborhoods devastated by these fires.”
“I have personally heard first-hand from homeowners, faith leaders, and business property owners who, while these fires still burn, received unsolicited offers to purchase their property, which in many instances represent their life savings and family legacies, for amounts far less than fair market value prior to this emergency,” it added.
Mayor Karen Bass | Credit: City of LA
Newsom charged the Department of Real Estate with notifying the public of their property rights and providing resources, including contact information for the Attorney General’s Office and District Attorney, so homeowners can report speculators.
“We will not allow greedy developers to rip off these working-class communities at a time when they need more support than ever before,” the governor said.
Subsequent to Newsom’s statement, the California Association of Realtors (CAR) released its own statement expressing its approval of the governor’s executive order and budget proposals for wildfire relief while also urging expansion of construction streamlining measures.
“The Los Angeles area already has very limited housing availability,” CAR’s statement read, “and the fires have displaced many people who will need housing. It will be essential to get new housing built, which streamlining measures will allow.”
Alongside Newsom, LA Mayor Karen Bass issued an executive order to help property owners rebuild their homes and businesses faster.
Executive Order 1 provides a multi-agency plan for debris removal and streamlines zoning approvals for homeowners and business owners during the rebuilding process. The order has one stipulation, which says homeowners and business owners cannot increase the size of their properties by more than 10 percent.
“This unprecedented natural disaster warrants an unprecedented response that will expedite the rebuilding of homes, businesses and communities,” Bass said in a written statement. “This order clears away red tape and bureaucracy to organize around urgency, common sense and compassion.”
“CAR urges state leaders to continue prioritizing forward thinking policies, through legislation, the state budget and regulations to assist those in the affected areas and address the housing and insurance crises that have now been exacerbated in the wake of these wildfires,” CAR President Heather Ozur said in the statement. “We will continue to collaborate with the governor and legislature to advance robust investments that support wildfire victims, allow them to rebuild their homes, and on the broader housing and insurance issues that confront us.”