Los Angeles fire victims get protections from predatory real estate investors under new order from Gov. Gavin Newsom
Los Angeles fire victims get protections from predatory real estate investors under new order from Gov. Gavin Newsom
The order targets opportunistic real estate speculators who make unsolicited cash offers well below market value in attempts to exploit victims of the Los Angeles-area fires.
Summary
Gov. Gavin Newsom issued an executive order to protect Los Angeles fire victims from predatory real estate practices.
The order prohibits undervalue cash offers for three months in fire-affected areas, like Altadena, where the Eaton Fire has caused major destruction.
Violators face potential criminal charges. Newsom also directed state agencies to educate residents on their rights and resources.
Modeled after Hawaii's 2023 Lahaina fire order, the measure aims to preserve community stability.
Over 100,000 residents remain evacuated, with 25 confirmed fatalities from the fires.
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This is a double edged sword. You are protecting homeowners from predatory behavior, sure. But also delaying those who simply want to cash out and say fuck this.
This is also LA's chance to go into these areas and build high density, high efficiency housing with fire resistant materials and prevent future issues like this while also providing some relief to the housing issues in the area and showing how energy efficiency is the future of construction. Unfortunately these homes are going to be rebuilt as fast as possible for the families to move back in as fast as possible and they will use whatever is the cheapest and most accessible materials to make it happen. And this protection does nothing to stop that, and if anything encourages it by blocking the sales and pushing for individual rebuilds.
With climate change pushing these fire to happen more often, this disaster that could be at least mitigated. Policy like this will only push for a future cycle of rebuild the same way followed by burning down the same way. And it is the poor and middle class footing the bill to the insurance companies charging whatever they want, knowing it is going to keep happening.
Maybe this was the plan. Burn it down, buy it cheap, build high and outrageously priced, cash in.