Governor Gavin Newsom has directed $101 million in state funds toward affordable, multifamily rental housing on land devastated by January’s wildfires in Pacific Palisades, Altadena, and Malibu. State officials cite widespread displacement—13,000 households across the region—as justification.
The funding comes through California’s Department of Housing and Community Development under a new “Multifamily Finance Super NOFA” (MFSN‑LA Disaster). It prioritizes projects near recent burn areas, offering rental preference for displaced families. The state requires these units to remain affordable for at least 55 years and incentivizes developers to bundle infrastructure grants, operating subsidies, and low-interest loans under one streamlined application.
Newsom stated, “The funding we’re announcing today will accelerate the development of affordable multifamily rental housing so that those rebuilding their lives after this tragedy have access to a safe, affordable place to come home to.” Supporters claim it helps restore housing stability for thousands still displaced six months after the fires.
Critics argue the plan is a state-driven land grab, replacing high-end private homes with low-income housing that reshapes the character of communities like Pacific Palisades. Commentators warn that the income definitions being used could disqualify middle-class homeowners from assistance while favoring renters who never lived in the area. The Center Square notes that post-fire housing designations lean toward lower-income qualifiers, leaving out many of the original homeowners.
Despite damage to more than 18,000 structures, only 800 rebuilding permits have been issued. Residents say red tape and state priorities are slowing recovery for traditional homeowners while accelerating government-subsidized redevelopment.
