California Allocates $101M for Low-Income Housing in Fire-Ravaged Los Angeles

California Gov. Gavin Newsom has allocated $101 million to fund the construction of affordable multifamily rental housing in areas affected by the Palisades and Eaton wildfires, aiming to assist displaced residents with safe, long-term housing options. The funding, distributed through the California Department of Housing and Community Development’s Multifamily Finance Super NOFA, prioritizes developments near fire perimeters and requires that housing remain affordable for at least 55 years. This initiative comes amid concerns from some local residents who fear the program may alter the character of affluent neighborhoods like Pacific Palisades, given that state laws mandate replacing fire-destroyed rent-protected housing with low-income units based on countywide income data. The plan, supported by a recent rollback of environmental regulations to facilitate quicker construction, is portrayed by officials as a step toward a more equitable and resilient Los Angeles, though it has sparked controversy and suspicions among certain community members. Housing advocates praise the deregulatory measures and funding as necessary to address the region’s housing crisis intensified by the wildfires, focusing on disaster resilience and mitigation. Newsom’s administration emphasizes that the funding will help families rebuild their lives with access to affordable housing in the wake of the devastating fires.