Los Angeles fire victims get protections from predatory real estate investors under new order from Gov. Gavin Newsom
LOS ANGELES — California Gov. Gavin Newsom issued an executive order Tuesday safeguarding victims of the Los Angeles-area fires from predatory real estate investors.
The executive order is designed to protect residents in fire-ravaged zip codes in Los Angeles County, with a particular focus on communities like Altadena, which has been hit hard by the Eaton Fire.
The order targets opportunistic real estate speculators who make unsolicited cash offers well below market value in attempts to exploit victims of the Southern California fires, the Governor's Press Office said.
"As families mourn, the last thing they need is greedy speculators taking advantage of their pain. 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."
For three months, undervalue offers are prohibited on homes impacted by the fires. Newsom's order also directs the California Department of Real Estate and other state agencies to ensure the public is aware of resources and their rights under the law as well as providing contact information for law enforcement agencies.
Newsom stressed that violations of the executive order — which was modeled after a similar order issued in Hawaii for the 2023 Lahaina fires — could lead to criminal prosecution, as California law makes it a misdemeanor to violate a governor's order during a state of emergency.
"Undermarket offers by opportunistic investors in communities such as Altadena threaten the character and vibrancy of the community and could displace and endanger vulnerable residents who have long ties and investments in the community," the order states.
As of Tuesday, at least 25 people have been confirmed dead in the Eaton and Palisades fires as widespread destruction was left behind in Los Angeles County since the fires started amid a historic windstorm in early January. More than 100,000 people remain under mandatory evacuation orders for the wildfires as more challenging weather conditions were expected to arrive on Wednesday.
Earlier in the week Gov. Newsom signed a separate executive aimed at fast-tracking debris removal in the fire zones.
On Tuesday, Newsom expanded a special legislative session aimed at defending California's progressive policies from the incoming Trump administration to also call on legislators to approve $2.5 billion for fire aid.