Govind Tekale
Six months after devastating wildfires swept through Los Angeles County, Governor Gavin Newsom has committed $101 million to accelerate rebuilding efforts, focusing on affordable multifamily rental housing in fire-damaged areas.
The January 2025 Palisades and Eaton fires destroyed over 16,000 structures and claimed at least 27 lives, leaving thousands of families still displaced across communities from Pacific Palisades to Altadena and Malibu. This new funding aims to provide stable housing options for these families while addressing the region’s strained rental market.
“Thousands of families are still displaced and we owe it to them to help,” Newsom said when announcing the initiative. “The funding will accelerate the development of affordable multifamily rental housing so those rebuilding their lives after this tragedy have access to a safe, affordable place to come home to.”
The money will be distributed through a specialized program called the Multifamily Finance Super Notice of Funding Availability (MFSN-LA Disaster). The California Department of Housing and Community Development (HCD) designed this program to prioritize projects near burn areas that are ready for immediate construction and include preference for households displaced by the fires.
Tomiquia Moss, Secretary of the California Business, Consumer Services and Housing Agency, explained that the program will “expedite and expand opportunities to build affordable housing for low-income residents.” HCD Director Gustavo Velasquez added that his team “has taken a program built on efficiency and further refined it specifically to help the Los Angeles region rebuild from unimaginable tragedy.”
Applications for the first phase of funding will be accepted starting July 21, with submissions due by August 21. If funds remain after reviewing shovel-ready projects, applications will continue to be accepted until all money is allocated. Projects funded through this program must remain affordable for at least 55 years.
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The funding announcement builds on earlier recovery efforts. Just one day before this announcement, Newsom marked the six-month anniversary of the fires by touting the substantial completion of debris removal from more than 10,000 damaged parcels, which his office called “the fastest major disaster cleanup in American history.” He also signed an executive order to further streamline rebuilding processes and unveiled a recovery blueprint with local leaders.
Previous executive orders suspended various permitting requirements and environmental reviews to accelerate rebuilding. The state has also offered tax relief to affected residents and businesses, including postponing tax filing deadlines and suspending penalties on late property tax payments.
While progress is being made in the recovery effort, challenges remain. Six months after the fires, many homeowners still struggle with insurance claims and securing rebuilding permits. According to recent reports, approval rates for rebuild permits remain low in some areas—approximately 25% in Pacific Palisades and only 5% in Altadena.
Environmental groups have raised concerns about some aspects of the rebuilding process. Organizations like Earthjustice and the Sierra Club have criticized Newsom’s executive orders for exempting fire rebuilding from newer, more stringent building codes that would encourage all-electric homes. These groups argue that the 2025 building codes would result in safer, more cost-effective, and environmentally friendly construction compared to the 2022 standards that are currently being allowed.
Beyond housing, other recovery initiatives include moving power lines underground to prevent future fires—a significant focus after lawsuits claimed utility companies’ equipment may have contributed to the January blazes. Several utility companies have started underground projects in both Altadena and Pacific Palisades areas.
The $101 million housing commitment is part of a broader recovery strategy that includes billions in state funding for emergency response, cleanup, and rebuilding. In January, Newsom proposed at least $2.5 billion in additional funding to support recovery efforts and boost wildfire preparedness.
As Los Angeles continues to recover, the focus remains on rebuilding not just structures, but communities. With thousands still displaced, officials hope this funding will provide much-needed housing stability for those most affected by one of Southern California’s most destructive wildfire events in recent history.
