California protects LA fire victims from predatory real estate investors

Water is dropped on homes as the Palisades Fire advances in Mandeville Canyon on Saturday, Jan. 11, 2025, in Los Angeles. (AP Photo/Jae C. Hong)

LOS ANGELES – Gov. Gavin Newsom signed an executive order Tuesday aimed at cracking down on land speculators who make “aggressive and unsolicited cash offers” to purchase properties affected by the Southern California wildfires.

“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 in a statement.

“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 order specifically bars “unsolicited undervalued” purchase offers for land in select Los Angeles County ZIP codes for three months.

It also instructs the state Department of Real Estate and other state agencies to reach out to the public about their legal rights and available resources, and to provide residents with contact information of law enforcement agencies to report any violations of the order.

According to the governor’s office, the order was modeled after a similar step taken by the governor of Hawaii following the devastating wildfires that destroyed Lahaina and other areas on Maui last August.

Disaster relief for homeowners

Meanwhile, disaster relief for homeowners, business loans, rent and price gouging protection were among several initiatives the Los Angeles City Council moved forward Tuesday in response to the multiple fires that destroyed parts of Los Angeles.

“As you can imagine, (the fires) have had a traumatic and life changing impact on thousands of lives,” Councilwoman Traci Park said. “I feel the heartbreak in every conversation…”

“Our singular goal must be to ensure that residents have the resources they need to rebuild their lives and come home,” she added.

Council members called for an outside entity to conduct an independent report of the city and Los Angeles County’s emergency response to the wildfires. (With CNS report)