Real property impacted by the 2025 Eaton or Palisades Fires: notification of owner’s intent to sell., the official text

An act to add and repeal Article 1.6 (commencing with Section 1102.50) of Chapter 2 of Title 4 of Part 4 of Division 2 of the Civil Code, relating to real property.

LEGISLATIVE COUNSEL'S DIGEST

Existing law establishes various real estate disclosure requirements applicable to the transfer of residential real property. On January 7, 2025, the Governor proclaimed a state of emergency to exist in the Counties of Los Angeles and Ventura due to fire and windstorm conditions that caused multiple fires, including the Eaton and Palisades Fires.
This bill would require the County of Los Angeles to develop a process for specified governmental or nonprofit organizations to notify the county of their interest in purchasing specified types of real property located within an area impacted by the Eaton or Palisades Fires. The bill would require the county to maintain on its internet website a list of the organizations that have provided the county with that notification. By imposing new duties on the County of Los Angeles, the bill would impose a state-mandated local program. The bill would allow the owner of property subject to the bill’s provisions to notify the County of Los Angeles or an organization on the county’s list of the owner’s intent to sell the
property, as specified. The bill would repeal its provisions 6 years following the expiration of the last declared disaster or state of emergency resulting from the Eaton or Palisades Fires. The bill would make related findings and declarations.
This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Los Angeles.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

The people of the State of California do enact as follows:

SECTION 1.
Article 1.6 (commencing with Section 1102.50) is added to Chapter 2 of Title 4 of Part 4 of Division 2 of the Civil Code, to read:
1.6.
Post Disaster Community Stabilization Act1102.50.
The Legislature finds and declares all of the following:
(a) On January 7, 2025, a state of emergency was declared in the Counties of Los Angeles and Ventura due to the Palisades Fires and severe windstorm conditions, which resulted in multiple additional wildfires, including the Eaton, Hurst, Lidia, Sunset, Woodley, and Hughes Fires. These wildfires devastated communities across the greater Los Angeles area, burning over 47,900 acres and destroying or damaging more than 16,250 structures, including homes, small businesses, schools, childcare facilities, and places of worship.
(b) These fires have destroyed entire neighborhoods and communities, uprooting families that have called these places home for generations, destroying businesses that owners have struggled and sacrificed to build, and disrupting community ties that cannot be easily reestablished.
(c) Recovery from this disaster requires more than just rebuilding homes, structures, and the physical infrastructure that has been lost, but also entails preservation of community ties and the culture that grew and flourished in neighborhoods devastated by these fires.
(d) Homeowners, faith leaders, and business property owners have reported receiving unsolicited offers to purchase their property, which in many instances represent their life savings and family legacies.
(e) Real estate investment firms are seeking to buy distressed properties from fire victims who are currently overwhelmed by the overlapping hardships of bureaucratic hurdles, financial burdens, and the trauma of destruction, displacement, and profound loss.
(f) If land is lost to speculation, the communities harmed by these fires risk losing their unique assets and culture, which only exacerbates an already disproportionate impact on Black families who built generational wealth and created a sanctuary in Altadena after being redlined out of other parts of the region.
(g) Local residents and organizations are already working to acquire and temporarily steward land until a community-driven plan is in place, offering a community-based option for those who decide to sell their property.
(h) California has an interest in preventing displacement and loss of community assets and culture following a disaster, and ensuring community-based organizations have opportunities to acquire and hold property to increase access to affordable housing, homeownership opportunities, and community-serving small businesses.
(i) The anticommunity displacement mechanism and protections contained in the provisions of this act are necessary to assure that communities are kept whole following catastrophic wildfires and to prevent permanent displacement of communities following these devastating events.

1102.52.
For purposes of this article, the following definitions apply:
(a) “2025 Los Angeles Fire Impact Area” means the ZIP Codes within the fire perimeter of the Eaton or Palisades Fires, as determined by the Department of Forestry and Fire Protection’s disaster assessment maps.
(b) “Declared disaster” or “state of emergency” includes any of the following:
(1) A state of emergency or disaster declared by the federal government.
(2) A state of emergency proclaimed by the Governor pursuant to Section 8625 of the Government Code.
(3) A local emergency proclaimed by a local governing body or official pursuant to Section 8630 of the Government Code.
(c) “Real property” means any of the following:
(1) A single-family residential property.
(2) A multifamily residential property.
(3) A mobilehome park, as defined in Section 798.4.
(4) A manufactured housing community, as defined in Section 18210.7 of the Health and Safety Code.
(5) A mixed-use residential and commercial property.
(6) Commercial property.
(d) “Qualified entity” means an organization that has provided notice to the County of Los Angeles, pursuant to Section 1102.56.
(e) “State of emergency” has the same meaning as in Section 8558 of the Government Code.

1102.54.
An owner of real property located within the 2025 Los Angeles Fire Impact Area may send the County of Los Angeles or a qualified entity a notice of the owner’s intent to sell the property.
(a) The notice described in this section may include all of the following, as applicable:
(1) The location and a description of the real property.
(2) The unit number or other designation of each rental unit of the real property.
(3) The number of bedrooms and bathrooms in each residential rental unit.
(4) For commercial real property, the square footage.
(5) The annual expenses for the real property, including, but not limited to, management, insurance, utilities, and maintenance costs.
(6) If the owner opted into Los Angeles County Public Works’ Government-Run Debris Removal Program, a copy of the Right of Entry form and other available documentation of cleanup.
(7) If the owner opted out of Los Angeles County Public Works’ Government-Run Debris Removal Program, a copy of the opt-out form and, if applicable, a copy of the Right of Entry withdrawal form.

1102.56.
(a) The County of Los Angeles shall develop a process by which any of the organizations described in subdivision (b) may notify the county of their interest in purchasing real property pursuant to this article.
(b) The following types of organizations may submit a notification pursuant to subdivision (a):
(1) A local public entity, as defined in Section 50079 of the Health and Safety Code.
(2) A nonprofit corporation with all of the following attributes:
(A) It has a determination letter from the Internal Revenue Service affirming its tax-exempt status pursuant to Section 501(c)(3) of the Internal Revenue Code and is not a private foundation as that term is defined in Section 509 of the Internal Revenue Code.
(B) It has its principal place of business in California.
(C) The primary residences of all board members are located in California.
(D) One of its primary activities is the development and preservation of affordable rental housing or affordable homeownership opportunities in California, if the organization acquires residential real property, or the development and preservation of small businesses in California if the organization acquires fire-damaged commercial real property.
(E) It is registered and in good standing with the Attorney General’s Registry of Charitable Trusts, pursuant to the Supervision of Trustees and Fundraisers for Charitable Purposes Act (Article 7 (commencing with Section 12580) of Chapter 6 of Part 2 of Division 3 of Title 2 of the Government Code).
(3) A limited partnership in which the managing general partner is a nonprofit corporation meeting all of the requirements of paragraph (2).
(4) A limited liability company wholly owned by a community land trust or by one or more nonprofit corporations meeting all of the requirements of paragraph (2).
(5) A community land trust, as defined in clause (ii) of subparagraph (C) of paragraph (11) of subdivision (a) of Section 402.1 of the Revenue and Taxation Code.
(c) The County of Los Angeles shall maintain on its internet website an up-to-date listing of all organizations that have submitted a notification pursuant to subdivision (a).

1102.58.
This article shall be repealed six years following the expiration of the last declared disaster or state of emergency resulting from the Eaton or Palisades Fire.

SEC. 2.
The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the need to prevent displacement and promote community stewardship of land in the communities that faced widespread destruction from the Palisades Fire, Eaton Fire, and windstorm conditions.

SEC. 3.
If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.