California Senate advances bill to boost wildfire recovery and affordable housing in L.A. county
07/20/2025 / By Laura Harris
- The California Senate approved SB 549 to create the Los Angeles County Resilient Rebuilding Authority (RRA) to accelerate wildfire recovery, expand affordable housing and improve public transit in fire-affected areas.
- The RRA would oversee land acquisition, bulk purchasing of construction materials, rebuilding logistics and promotion of ADUs and senior housing, while also coordinating job training and workforce housing.
- The bill introduces the NIFTI-2 mechanism to fund projects through incremental property tax revenue, with 40 percent directed to low-income housing, 10 percent for active transportation and beautification and 50 percent for transit and affordable housing near transit.
- California Gov. Gavin Newsom pledged $101 million for low-income multifamily housing in areas hit by the Palisades, Eaton and Hughes wildfires, offering up to $450,000 in loans and $90,000 in grants per unit.
- Newsom emphasized the need for rapid, affordable housing development to support displaced families and the proposed RRA, combined with state funding, is expected to fast-track recovery and resilience efforts in the region.
The California Senate has passed a new bill that will accelerate wildfire recovery, increase affordable housing and expand public transit to Los Angeles County.
Senate Bill 549, which cleared the Senate this July, would create a powerful new agency, the Los Angeles County Resilient Rebuilding Authority (RRA), and authorize it to direct public funding and planning for recovery in areas devastated by wildfires.
The bill, heard in the State Assembly on Wednesday, July 16, establishes the RRA as a centralized body capable of purchasing land for recovery, overseeing construction and coordinating long-term rebuilding strategies. Under the proposed legislation, the RRA would be able to “issue, receive and administer funds” from a range of sources, including state and federal grants, tax-increment financing and philanthropic donations. (Related: LA mayor’s budget cuts blamed for fire department struggles as wildfires rage.)
Among its sweeping provisions, SB 549 grants the RRA authority to purchase lots for “land banking” to preserve open space and steer development; buy construction materials in bulk, helping reduce costs and accelerate timelines; coordinate logistics of rebuilding, including workforce housing and labor partnerships; and promote accessory dwelling units (ADUs), senior housing and replacement of affordable rental units lost in the fires.
The agency would also play a major role in workforce development, with an emphasis on partnering with labor trades and facilitating job training programs to support rebuilding efforts.
To finance these initiatives, the bill introduces an updated tax tool known as NIFTI-2 (Neighborhood Infill and Transit Improvements 2), which allows local governments to capture the increase in property tax revenue from new development, known as tax increment financing, without raising base tax rates.
NIFTI-2 directs the new funds toward community-serving infrastructure, with strict affordability guidelines, including 40 percent of NIFTI-2 revenue must go to housing for households earning less than 60 percent of the area median income; 10 percent is set aside for “active transportation” and beautification projects, including bike lanes and non-vehicular access to transit and the remaining 50 percent can be used for transit infrastructure and affordable multifamily housing near transit hubs.
Newsom pledges $101 million for wildfire recovery housing
The hearing comes just over a week after California Gov. Gavin Newsom announced $101 million in public funding for “multifamily low-income housing development” in Los Angeles communities impacted by the Palisades, Eaton and Hughes wildfires.
“Los Angeles has taken significant steps to rebuild after January’s fires, but the devastation is significant and there remains a long road ahead. Thousands of families, from Pacific Palisades to Altadena to Malibu, are still displaced and we owe it to them to help,” Newsom said adding that by supporting the bill, the state can “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.”
Paired with the governor’s initiative, which offers up to $450,000 in loans and $90,000 in grants per unit, potential funding from the proposed RRA-LAW could significantly boost efforts to develop income-restricted housing across the region.
Head over to Disaster.news for related news.
Watch the video below that reveals that the massive California fire was started with a purpose.
This video is from the World Alternative Media channel on Brighteon.com.
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