Fury Erupts Over CA’s Plan to Convert Fire-Ravaged Lots into Low-Income Housing

On Tuesday, the California State Senate passed Senate Bill 549, advancing the bill to the State Assembly, where debate began the following day. The legislation would authorize the use of taxpayer funds to purchase fire-damaged lots in formerly upscale neighborhoods for conversion into low-income housing.

Promises made by California Gov. Gavin Newsom and Los Angeles Mayor Karen Bass to streamline the rebuilding process in the aftermath of the January wildfires have gone largely unfulfilled. Despite their public assurances, city agencies have been slow to issue building permits, leaving many displaced homeowners in limbo and frustrated by bureaucratic delays.

It now appears that the pair either never intended to help homeowners rebuild — or they saw an opportunity to advance a broader agenda by introducing low-income housing into high-value real estate markets. Either way, SB 549, introduced by Democratic State Senator Ben Allen, whose district includes much of the area impacted by the wildfires, seemed well on its way to passage last week, signaling a dramatic shift in how the state may repurpose fire-destroyed land.

Newsom was so sure of its passage that he’s already allocated $101 million to jumpstart the program. An announcement from his office said, “The $101 million being made available today will support the development of affordable multifamily rental housing in Los Angeles, prioritizing the needs of displaced residents in the fire-devastated regions.”

Apparently, this radical-left power grab has met with fierce resistance from outraged homeowners and others who understand the government’s motivation. What’s being sold as “recovery” is, in reality, a thinly veiled attempt to reshape once-thriving neighborhoods through top-down mandates — without community consent.

The backlash must have been quite severe because the government has announced a pause on the legislation “until at least next year.”

In a statement on X, Allen wrote, “I appreciate the input from the folks who have weighed in about the bill, and along with colleagues have decided that it would be best for us to pause the bill until next year to give us more time to see if we can get it right. For me to feel comfortable proceeding, the bill will have to be deeply grounded in community input, empowerment, and decision-making, including the support of he impacted Councilmembers.”

Allen’s pathetic statement isn’t fooling anyone.

While grateful for the pause, many Californians are worried about what’s next.

An editorial in the Malibu Daily News reminds Californians that Allen promised only “a pause, not a pivot.”

But that pause rings hollow when you consider the parallel track: federal and state funds already earmarked to reshape neighborhoods through “supportive” and “transit-oriented” housing, with or without the input of local governments.

Regarding the $101 million Newsom has allocated toward this project, the editorial warned:

[I]n practice, it’s a vehicle for implementing controversial housing mandates that have failed to gain traction through democratic means. Instead of responding to local needs, the state appears to be seizing the opportunity to push through a top-down vision of urban planning, using disaster as the justification and equity as the branding.It’s not about rebuilding what was lost. It’s about replacing it with something politically aligned, legally insulated, and ideologically driven.If SB 549 was the public rollout, this wildfire recovery package is the stealth pilot program….This isn’t just about fire recovery—it’s about rewriting the social fabric of California’s most coveted communities.Residents may have dodged SB 549 this session, but the real transformation is already underway, quietly funded, pre-approved, and immune to local input.And once it’s built, there’s no going back.

In other words, Allen’s announcement was just a strategic pause — a move to keep the political wolves at bay. SB 549 may be off the table for now, but it’s far from dead. The bill can be expected to resurface in the next legislative session, just five months away. In the meantime, state officials will be hard at work behind the scenes, fine-tuning the proposal and laying the groundwork for its return.


Elizabeth writes commentary for Legal Insurrection and The Washington Examiner. She is an academy fellow at The Heritage Foundation. Please follow Elizabeth on X or LinkedIn.

Tags: California Legislature, Gavin Newsom, Los Angeles, Progressives

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