Gavin Newsom Cracks Down on Predatory Wildfire Investors

.

According to a press release.

Contacted the office of Newsom by email on Tuesday and was directed to the official press release.

Why It Matters

More than a week after the Palisades and Eaton fires began on January 7 in California, the two fires have collectively burned through over 37,800 acres, leveling thousands of buildings, including homes and famous landmarks. Many more structures are still in danger as of Tuesday night, as the fires are only partially under control.

For those who have lost their homes, the road to recovery seems difficult: the fires have resulted in the largest insured wildfire loss in U.S. history. The situation could be made even tougher by the unscrupulous actions of real estate investors and landlords, whether that’s making lowball offers to those who have lost everything they own or inflating rental prices.

What To Know

The National Alliance for the Displaced mentioned that this could only be achieved if the farmers affected had constant and honest access until the land titles have been handed back in their names under the owners. This way they can re-plant their farms after the fires have destroyed them.

People who survived the fires received calls from real estate investors looking to buy their homes. These offers were tempting, especially as they were looking to start rebuilding after the disaster, which has roots that go back generations of their family in Maui.

People who have lost their homes to the fires in California are reportedly being targeted in predatory actions, Governor Newsom has stated. In response, Newsom has drawn up an executive order to stop what he considers land grabbing and speculation on the current disaster, taking inspiration from a similar order by Green to protect Hawaiian residents following the August 2023 wildfire.

Wildfire Survivors Get Enhanced Protection Under New Laws

The executive order is intended to safeguard residents in the Los Angeles County ZIP codes that were most severely affected by the wildfires. These include areas with the following ZIP codes: 90019, 90041, 90049, 90066, 90265, 90272, 90290, 90402, 91001, 91040, 91104, 91106, 91107, 93535, and 93536. The order also covers the community of Altadena, where the Eaton fire caused extensive damage to thousands of family homes, businesses, houses of worship, and cultural institutions.

“Any interest in the real estate property for a price lower than the fair market value of the property or interest in the property as of January 6, 2025” is forbidden for three months starting from January 14.

The state’s Department of Real Estate is required to report any violations to the order to the relevant authorities.

What People Are Saying

As families are grieving, what they need least is predatory investors exploiting their suffering. I’ve directly heard from affected residents and victims who were approached by unsolicited and exploitative offers from speculators offering significantly below-market prices—some even while their homes were still on fire.

We will not permit unscrupulous developers to exploit these working-class communities during a time when they require more support than ever before.

With the devastating fires causing immense harm, it’s only natural to consider the profoundly traumatic and life-altering effects on countless individuals. Our top priority must be to provide residents with the necessary support to rebuild and return home safely.

What’s Next

As of Tuesday evening, at least 25 fatalities have been officially confirmed in connection with the Eaton and Palisades fires, and there are currently 13 people listed as missing. Approximately 90,000 individuals continue to be subject to evacuation orders.

Strong gusts of wind that began intensifying overnight are forecast to reach their highest point by Wednesday morning, increasing the difficulties faced by firefighters in their attempts to bring the fire under control.

Related Articles

• Los Angeles Fire Department Chief Expresses Concerns Over New Wind Forecast
• Law Could Block ICE From Detaining LA Fire Person of Interest
• San Francisco’s Weather Isn’t Shaping Up as Projected
• Shelter Dogs Abandoned for Too Much Energy Are Sent to California Wildfires

Start your free trial subscription.