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

SB 658

California Bills

20250SB__065897AMD INTRODUCED 2025-02-20 AMENDED_SENATE 2025-03-26 AMENDED_SENATE 2025-04-10 2025 SB AMD Introduced by Senator Pérez LEAD_AUTHOR SENATE Pérez

An act to add and repeal

Article 1.6 (commencing with

Section 1102.50) of

Chapter of Title of Part of Division of the Civil Code, relating to real property. real property Real property impacted by the Eaton or Palisades Fires: notification of owner’s intent to sell. 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 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 require an owner that sells a property subject to the bill’s provisions to record, or cause to be recorded, a certification of compliance under penalty of perjury at the time of sale, as specified, and would make failure to file the certificate an infraction punishable as specified. By expanding the crime of perjury and creating a new crime, the bill would impose a state-mandated local program.</xhtml:p><xhtml:p>This bill would impose additional requirements on a qualified entity that purchases, pursuant to these provisions, property that is, or was on January 7, 2025, occupied by tenants.

In this regard, the bill would require the qualified entity to retain all existing tenancies and to restore tenancies terminated due to the Eaton or Palisades Fires, as specified. The bill would require the qualified entity to make vacant units of the property affordable to persons and families of specified income levels that would depend on the average rental rate or housing cost of the units, as specified. The bill would require these affordability requirements to be contained in a covenant or restriction recorded against the property at the time of sale.

The bill would prohibit the qualified entity from selling the property except to a qualified purchaser, as provided.

The bill would make these requirements applicable to successive owners.</xhtml:p><xhtml:p>This bill, on or before July 1, 2026, would require the cities that have jurisdiction in the area and the County of Los Angeles to jointly convene a working group consisting of individuals and organizations representing individuals who were impacted by the fires, as specified, to provide input on the development of guidelines that, upon adoption by the city or county, would govern new development and disposition of single-family property that was damaged or destroyed by the fires and was used as the owner’s primary residence on January 7, 2025, or fire-damaged commercial real property that a qualified entity purchases.

By imposing new duties on those cities and the County of Los Angeles, the bill would impose a state-mandated local program. The bill would require a qualified entity that purchases such property, and successive owners, to adhere to those guidelines.</xhtml:p><xhtml:p>This bill would grant a private cause of action to specified entities to enforce the provisions of the bill, and would allow for civil remedies, as specified.</xhtml:p><xhtml:p>Existing law imposes various requirements to be satisfied prior to exercising a power of sale under a mortgage or deed of trust.

Existing law, with respect to residential real property containing up to dwelling units, requires a mortgagee, trustee, beneficiary, or authorized agent to provide to the mortgagor or trustor a copy of the recorded notice of default and a copy of the recorded notice of sale.</xhtml:p><xhtml:p>This bill would require a mortgagee, trustee, beneficiary, or authorized agent, within business days of recording a notice of default against multifamily residential real property or fire-damaged commercial real property subject to the bill’s provisions described above, to provide to the mortgagor or trustor a list of qualified entities, and to post a copy of the notice of default in a conspicuous place on the property, as provided.

The bill would make these provisions effective for years following the expiration of a declared disaster or state of emergency resulting from the Eaton or Palisades Fires.</xhtml:p><xhtml:p>The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.</xhtml:p>"?> 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.</xhtml:p><xhtml:p>This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.</xhtml:p><xhtml:p>With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.</xhtml:p>"?> 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. MAJORITY NO YES YES NO NO NO NO NO NO NO The people of the State of California do enact as follows:

SECTION

Article 1.6 (commencing with

Section 1102.50) is added to

Chapter of Title of Part of Division of the Civil Code , to read: 1.6. Post Disaster Community Stabilization Act 1102.50. 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)<xhtml:span class="EnSpace"/>“Affordable” in reference to housing cost, including in the case of resident-owned housing units, has the same meaning as in

Section 50052.5 of the Health and Safety Code.</xhtml:p><xhtml:p>(c)<xhtml:span class="EnSpace"/>“Affordable” in reference to rent has the same meaning as in

Section of the Health and Safety Code.</xhtml:p><xhtml:p>(d)<xhtml:span class="EnSpace"/>“Area median income” has the same meaning as in

Section of the Health and Safety Code.</xhtml:p><xhtml:p>(e)</xhtml:p>"?> (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 of the Government Code.

(3) A local emergency proclaimed by a local governing body or official pursuant to

Section of the Government Code. (f)<xhtml:span class="EnSpace"/>“Fire-damaged commercial real property” means commercial real property located in the Los Angeles Fire Impact Area that was damaged or destroyed by the Eaton or Palisades Fires.</xhtml:p><xhtml:p>(g)<xhtml:span class="EnSpace"/>“Local authority” means the city that has jurisdiction of the area in which the property is located or, for an unincorporated area in which the property is located, the County of Los Angeles.</xhtml:p><xhtml:p>(h)<xhtml:span class="EnSpace"/>“Lower income households” has the same meaning as in

Section 50079.5 of the Health and Safety Code.</xhtml:p><xhtml:p>(i)<xhtml:span class="EnSpace"/>“Persons and families of low or moderate income” has the same meaning as in

Section of the Health and Safety Code.</xhtml:p>"?> (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. (j)</xhtml:p>"?> (d) “Qualified entity” means an organization that has provided notice to the County of Los Angeles, pursuant to

Section 1102.56. (k)<xhtml:span class="EnSpace"/>(1)<xhtml:span class="EnSpace"/>“Residential real property” means any of the following:</xhtml:p><xhtml:p>(A)<xhtml:span class="EnSpace"/>A single-family residential property that meets any of the following criteria:</xhtml:p><xhtml:p>(i)<xhtml:span class="EnSpace"/>The property is occupied by a tenant.</xhtml:p><xhtml:p>(ii)<xhtml:span class="EnSpace"/>The property was damaged or destroyed by the Eaton or Palisades Fires and was occupied by a tenant as of January 7, 2025.</xhtml:p><xhtml:p>(iii)<xhtml:span class="EnSpace"/>The property was damaged or destroyed by the Eaton or Palisades Fires and was used as the owner’s primary residence on January 7, 2025.</xhtml:p><xhtml:p>(B)<xhtml:span class="EnSpace"/>A multifamily residential property that meets either of the following criteria:</xhtml:p><xhtml:p>(i)<xhtml:span class="EnSpace"/>The property is vacant or occupied, in whole or in part, by tenants.</xhtml:p><xhtml:p>(ii)<xhtml:span class="EnSpace"/>The property was damaged or destroyed by the Eaton or Palisades Fires and was occupied by a tenant as of January 7, 2025.</xhtml:p><xhtml:p>(C)<xhtml:span class="EnSpace"/>A mobilehome park, as defined in

Section 798.4.</xhtml:p><xhtml:p>(D)<xhtml:span class="EnSpace"/>A manufactured housing community, as defined in

Section 18210.7 of the Health and Safety Code.</xhtml:p><xhtml:p>(E)<xhtml:span class="EnSpace"/>A mixed-used property that meets either of the following criteria:</xhtml:p><xhtml:p>(i)<xhtml:span class="EnSpace"/>The property is vacant or occupied, in whole or in part, by a tenant.</xhtml:p><xhtml:p>(ii)<xhtml:span class="EnSpace"/>The property was damaged or destroyed by the Eaton or Palisades Fires and was occupied by a tenant as of January 7, 2025.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>“Residential real property” does not include any of the following:</xhtml:p><xhtml:p>(A)<xhtml:span class="EnSpace"/>A property that is currently subject to a regulatory agreement with a governmental agency that restricts rents to occupancy by low-income households and is being transferred to a nonprofit entity, or a limited partnership or limited liability company controlled by a nonprofit, that agrees to a condition of the sale or transfer to record a new regulatory agreement with a governmental agency that restricts occupancy to eligible low-income households for at least years.</xhtml:p><xhtml:p>(B)<xhtml:span class="EnSpace"/>A property owned by a local, state, or federal government.</xhtml:p><xhtml:p>(C)<xhtml:span class="EnSpace"/>A property owned by and operated as a hospital, convent, monastery, extended care facility, or convalescent home.</xhtml:p><xhtml:p>(D)<xhtml:span class="EnSpace"/>A dormitory owned and operated by an educational institution.</xhtml:p><xhtml:p>(E)<xhtml:span class="EnSpace"/>A property owned by a corporation that is owned and controlled by a majority of residents who occupy the property and are at least years of age.</xhtml:p><xhtml:p>(<xhtml:i>l</xhtml:i>)</xhtml:p>"?> (e) “State of emergency” has the same meaning as in

Section of the Government Code. <caml:Num>1102.52.</caml:Num><caml:LawSectionVersion id="id_E32C4740-CDF9-4E2B-B4A5-1097E3FEC747"><caml:Content><xhtml:p>(a)<xhtml:span class="EnSpace"/>On and after the effective date of this section, and for six years following the expiration of a declared disaster or state of emergency resulting from the Eaton or Palisades Fires, an </xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection>"?> 1102.54.

An owner of real property located within the 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. (1)<xhtml:span class="EnSpace"/>Offering the residential real property or fire-damaged commercial real property for sale to any purchaser other than a qualified entity.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>Soliciting any offer to purchase the residential real property or fire-damaged commercial real property from any purchaser other than a qualified entity.</xhtml:p><xhtml:p>(3)<xhtml:span class="EnSpace"/>Accepting any unsolicited offer to purchase residential real property or fire-damaged commercial real property from any party other than a qualified entity.</xhtml:p><xhtml:p>(4)<xhtml:span class="EnSpace"/>Entering into a contract for sale of the residential real property or fire-damaged commercial real property with any party other than a qualified entity, whether through listing or off-market sale, whether individual properties or a bundled portfolio of properties.</xhtml:p><xhtml:p>(b)<xhtml:span class="EnSpace"/>(1)<xhtml:span class="EnSpace"/>An owner of real property described in subdivision (

a) shall send a notice of the owner’s intent to sell the property to each qualified entity.</xhtml:p><xhtml:p>(2)</xhtml:p>"?> (

a) The notice described in this

section may include all of the following, as applicable: (A)</xhtml:p>"?>

(1) The location and a description of the real property. (B)</xhtml:p>"?>

(2) The unit number or other designation of each rental unit of the real property. (C)</xhtml:p>"?>

(3) The number of bedrooms and bathrooms in each residential rental unit. (D)</xhtml:p>"?>

(4) For commercial real property, the square footage. (E)</xhtml:p>"?>

(5) The annual expenses for the real property, including, but not limited to, management, insurance, utilities, and maintenance costs. (F)</xhtml:p>"?>

(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. (G)</xhtml:p>"?>

(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. (c)<xhtml:span class="EnSpace"/>(1)<xhtml:span class="EnSpace"/>A qualified entity may, within days of receipt of the notice required by subdivision (b), send a written notice to the property owner expressing interest in purchasing the property.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>If the property owner does not receive a notice expressing interest in purchasing the property from any qualified entity within days of the last date on which a qualified entity received notice under subdivision (b), the property owner may proceed in selling the property to another person or entity.</xhtml:p><xhtml:p>(d)<xhtml:span class="EnSpace"/>If the property owner receives a notice expressing interest in purchasing the property from a qualified entity pursuant to paragraph (1) of subdivision (c), the property owner shall provide the qualified entity with a disclosure package that provides, at a minimum, all of the following information:</xhtml:p><xhtml:p>(1)<xhtml:span class="EnSpace"/>The move-in date of each tenant of the real property.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>Base rent for each rental unit of the real property.</xhtml:p><xhtml:p>(3)<xhtml:span class="EnSpace"/>The costs that are passed through to each tenant, if any.</xhtml:p><xhtml:p>(4)<xhtml:span class="EnSpace"/>Whether each tenant has a written lease or rental agreement and the terms of those tenancies.</xhtml:p><xhtml:p>(5)<xhtml:span class="EnSpace"/>Contact information for each tenant.</xhtml:p><xhtml:p>(6)<xhtml:span class="EnSpace"/>For properties where the owner opted out of Los Angeles County Public Works’ Government-Run Debris Removal Program, a copy of the EPIC-LA Fire Debris Removal Permit, and a detailed description and substantiation of all repair, remediation, and removal activities that have occurred at the property.</xhtml:p><xhtml:p>(e)<xhtml:span class="EnSpace"/>Within days of receiving the disclosure package pursuant to subdivision (d), the qualified entity shall make reasonable efforts to inform the tenants of the qualified entity’s interest in purchasing the residential real property or fire-damaged commercial real property, and request to meet and confer with the property owner to confirm their interest in purchasing the property.

The property owner shall meet and confer with the qualified entity within the applicable timeframe in paragraph (1) of subdivision (

f) upon request. If the qualified entity does not request to meet and confer with the property owner to confirm their interest in purchasing the property within days of receiving the disclosure package, the property owner may proceed in selling the property to another party.</xhtml:p><xhtml:p>(f)<xhtml:span class="EnSpace"/>(1)<xhtml:span class="EnSpace"/>A qualified entity desiring to purchase real property described in subdivision (

a) that consists of five or more units shall submit an offer to purchase the property so that it reaches the property owner within days of the date on which the qualified entity received the disclosure package required pursuant to subdivision (d).

If the property consists of four or fewer units, the qualified entity desiring to purchase the real property shall submit an offer to purchase the property so that it reaches the property owner within days of the date on which the qualified entity received the disclosure package.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>If a qualified entity submits an offer to purchase the property, it shall simultaneously give notice to each tenant that it has made an offer to purchase the property.</xhtml:p><xhtml:p>(3)<xhtml:span class="EnSpace"/>If the property owner does not receive an offer to purchase the property within the applicable timeframes in paragraph (1), the property owner may proceed in selling the property to another party.</xhtml:p><xhtml:p>(g)<xhtml:span class="EnSpace"/>(1)<xhtml:span class="EnSpace"/>If the property owner accepts an offer submitted pursuant to this section, the property owner and the qualified entity shall attempt to, within days of acceptance of the offer, enter into a voluntary agreement setting the timeline within which the qualified entity shall secure financing and within which both parties shall close the deal.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>If the property owner and the qualified entity fail to enter into a voluntary agreement setting the timeline within which to secure financing and close the deal, the following timelines shall govern, unless the parties later enter into a voluntary agreement:</xhtml:p><xhtml:p>(A)<xhtml:span class="EnSpace"/>(i)<xhtml:span class="EnSpace"/>If the property is a single-family residential real property, the property owner shall afford the qualified entity days after the date the offer was accepted to secure financing.</xhtml:p><xhtml:p>(ii)<xhtml:span class="EnSpace"/>If, within the days afforded pursuant to clause (i), the qualified entity presents the property owner with the written statement of a lending institution or agency that the institution or agency estimates that a decision with respect to financing or financial assistance will be made within days after the date the offer was accepted, the property owner shall afford an extension of time consistent with the written estimate.</xhtml:p><xhtml:p>(B)<xhtml:span class="EnSpace"/>(i)<xhtml:span class="EnSpace"/>If the property is a multifamily residential real property containing two to four units, the property owner shall afford the qualified entity days after the date the offer was accepted to secure financing.</xhtml:p><xhtml:p>(ii)<xhtml:span class="EnSpace"/>If, within the days afforded pursuant to clause (i), the qualified entity presents the property owner with the written statement of a lending institution or agency that the institution or agency estimates that a decision with respect to financing or financial assistance will be made within days after the date the offer was accepted, the property owner shall afford an extension of time consistent with the written estimate.</xhtml:p><xhtml:p>(C)<xhtml:span class="EnSpace"/>(i)<xhtml:span class="EnSpace"/>If the property is a multifamily residential real property containing more than four units or a fire-damaged commercial real property, the property owner shall afford the qualified entity days after the date the offer was accepted to secure financing.</xhtml:p><xhtml:p>(ii)<xhtml:span class="EnSpace"/>If, within the days afforded pursuant to clause (i), the qualified entity presents the property owner with the written statement of a lending institution or agency that the institution or agency estimates that a decision with respect to financing or financial assistance will be made within days after the date the offer was accepted, the property owner shall afford an extension of time consistent with the written estimate.</xhtml:p><xhtml:p>(3)<xhtml:span class="EnSpace"/>If the qualified entity does not secure financing within the timeframe agreed upon pursuant to a voluntary agreement, or within the applicable timeframes in paragraph (2) in the absence of a voluntary agreement, the property owner may proceed in selling the property to another party.</xhtml:p><xhtml:p>(h)<xhtml:span class="EnSpace"/>(1)<xhtml:span class="EnSpace"/>A property owner may reject any offer submitted to purchase real property pursuant to this section.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>If the property owner rejects an offer from a qualified entity submitted pursuant to subdivision (f), the property owner may sell the property to any other party subject to paragraph (3).</xhtml:p><xhtml:p>(3)<xhtml:span class="EnSpace"/>If the party from whom the property owner intends to accept an offer is not a qualified entity, the property owner shall do both of the following:</xhtml:p><xhtml:p>(A)<xhtml:span class="EnSpace"/>Notify the qualified entity that submitted a rejected offer that the property owner intends to accept an offer from a party that is not a qualified entity.</xhtml:p><xhtml:p>(B)<xhtml:span class="EnSpace"/>Provide the qualified entity that submitted a rejected offer with days to invoke a right of first refusal to match the price of the offer on the same terms as that offer.

The qualified entity may invoke its right of first refusal by submitting a notice that reaches the property owner within days of the date on which the qualified entity received the notice described in subparagraph (A).</xhtml:p><xhtml:p>(4)<xhtml:span class="EnSpace"/>If a qualified entity does not receive the notice required by subdivision (

b) and the property owner accepts an offer from a party that is not a qualified entity, the qualified entity shall be given days to invoke a right of first refusal to match the price of the offer on the same terms as that offer. The qualified entity may invoke its right of first refusal by submitting a notice that reaches the property owner within days of the date on which the property owner accepted the offer submitted by the party that is not a qualified entity.</xhtml:p><xhtml:p>(i)<xhtml:span class="EnSpace"/>Notices and the disclosure package required pursuant to this

section shall be delivered by certified mail and additionally by email if email addresses are available.</xhtml:p><xhtml:p>(j)<xhtml:span class="EnSpace"/>(1)<xhtml:span class="EnSpace"/>The Department of Forestry and Fire Protection shall provide the local authority with data describing the fire perimeter sufficient for the local authority to determine which ZIP Codes are in the Los Angeles Fire Impact Area.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>Following the receipt of the data in paragraph (1), the local authority shall issue a bulletin to inform property owners which ZIP Codes are in the Los Angeles Fire Impact Area.</xhtml:p><xhtml:p>(k)<xhtml:span class="EnSpace"/>This

section shall not apply to the following transfers of real property:</xhtml:p><xhtml:p>(1)<xhtml:span class="EnSpace"/>An inter vivos transfer, whether or not for consideration, between any of the following:</xhtml:p><xhtml:p>(A)<xhtml:span class="EnSpace"/>Spouses.</xhtml:p><xhtml:p>(B)<xhtml:span class="EnSpace"/>Domestic partners.</xhtml:p><xhtml:p>(C)<xhtml:span class="EnSpace"/>A parent and child.</xhtml:p><xhtml:p>(D)<xhtml:span class="EnSpace"/>Siblings.</xhtml:p><xhtml:p>(E)<xhtml:span class="EnSpace"/>A sibling of a parent and a child of that parent.</xhtml:p><xhtml:p>(F)<xhtml:span class="EnSpace"/>A grandparent and grandchild.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>A transfer for consideration by a decedent’s estate to members of the decedent’s family if the consideration arising from the transfer will pass from the decedent’s estate to, or solely for the benefit of, a charity.

For purposes of this paragraph, “members of the decedent’s family” includes all of the following:</xhtml:p><xhtml:p>(A)<xhtml:span class="EnSpace"/>A spouse, domestic partner, parent, child, grandparent, or grandchild.</xhtml:p><xhtml:p>(B)<xhtml:span class="EnSpace"/>A trust for the primary benefit of a spouse, domestic partner, parent, child, grandparent, or grandchild.</xhtml:p><xhtml:p>(3)<xhtml:span class="EnSpace"/>A transfer of bare legal title into a revocable trust, without actual consideration for the transfer, where the transferor is the current beneficiary of the trust.</xhtml:p><xhtml:p>(4)<xhtml:span class="EnSpace"/>A transfer to a named beneficiary of a revocable trust by reason of the death of the grantor of the revocable trust.</xhtml:p><xhtml:p>(5)<xhtml:span class="EnSpace"/>A transfer pursuant to court order or court-approved settlement.</xhtml:p><xhtml:p>(6)<xhtml:span class="EnSpace"/>A transfer by eminent domain or under threat of eminent domain.</xhtml:p>"?> <caml:Num>1102.54.</caml:Num><caml:LawSectionVersion id="id_A42FE4E2-60C5-4A93-842F-F99DA56D610F"><caml:Content><xhtml:p>(a)<xhtml:span class="EnSpace"/>For the purposes of this section, the following

definitions apply:</xhtml:p><xhtml:p>(1)<xhtml:span class="EnSpace"/>“Qualified owner-occupied single-family property” means a single-family residential property that was damaged or destroyed by the Eaton or Palisades Fires and was used as the owner’s primary residence on January 7, 2025.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>“Qualified purchaser” means a person or family of low or moderate income or a cooperative corporation dedicated to affordable housing.</xhtml:p><xhtml:p>(3)<xhtml:span class="EnSpace"/>“Qualified tenant-occupied property” means any of the following real property that is currently occupied by a tenant or was occupied by a tenant as of January 7, 2025, and is located in the Los Angeles Fire Impact Area:</xhtml:p><xhtml:p>(A)<xhtml:span class="EnSpace"/>Mixed-use property.</xhtml:p><xhtml:p>(B)<xhtml:span class="EnSpace"/>Multifamily residential real property.</xhtml:p><xhtml:p>(C)<xhtml:span class="EnSpace"/>Single-family residential property.</xhtml:p><xhtml:p>(b)<xhtml:span class="EnSpace"/>A qualified entity that acquires qualified tenant-occupied property pursuant to

Section 1102.52, as well as all successive owners, shall be subject to all of the following:</xhtml:p><xhtml:p>(1)<xhtml:span class="EnSpace"/>(A)<xhtml:span class="EnSpace"/>(i)<xhtml:span class="EnSpace"/>All existing tenancies of the qualified tenant-occupied property shall be retained on the same terms that were in effect before the acquisition, except as permitted by state and local law.</xhtml:p><xhtml:p>(ii)<xhtml:span class="EnSpace"/>The qualified entity shall offer to restore, on the same terms that were in effect on January 7, 2025, the tenancy of a former tenant of the qualified tenant-occupied property if the tenancy existed on January 7, 2025, and was terminated on or after January 7, 2025, due to damage to or destruction of the property caused by the Eaton or Palisades Fires.

All tenancies restored pursuant to this clause shall be retained on those same terms, except as permitted by state and local law.</xhtml:p><xhtml:p>(iii)<xhtml:span class="EnSpace"/>An existing or restored tenancy described in clause (

i) or (ii) shall not be terminated for failure to meet income restrictions imposed by this section.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>(A)<xhtml:span class="EnSpace"/>Except as provided in subparagraph (B), the qualified entity shall ensure that vacant units of the qualified tenant-occupied property are filled with persons and families of low or moderate income, and that the housing cost or rent for those units is affordable to persons and families of low or moderate income.</xhtml:p><xhtml:p>(B)<xhtml:span class="EnSpace"/>If the average rental rate or housing cost of the units of a qualified tenant-occupied property exceeds that which is affordable to lower income households, the qualified entity shall make vacant units available at a rent or housing cost that is affordable to persons and families whose incomes do not exceed percent of the area median income until the average rental rate is no greater than that which is affordable to lower income households.</xhtml:p><xhtml:p>(3)<xhtml:span class="EnSpace"/>Once acquired by a qualified entity, the qualified tenant-occupied property shall not be sold except to a qualified purchaser and for not more than an affordable housing cost.

Notwithstanding other provisions in this section, a qualified entity may sell the dwelling units of a qualified tenant-occupied property to a qualified purchaser if the mortgage and property tax payments anticipated to be paid by the qualified purchaser do not exceed an affordable housing cost.</xhtml:p><xhtml:p>(c)<xhtml:span class="EnSpace"/>(1)<xhtml:span class="EnSpace"/>A qualified entity that acquires fire-damaged commercial real property or qualified owner-occupied single-family property, as well as all successive owners, shall adhere to the community rebuilding and disposition guidelines developed pursuant to paragraph (2) for any new development or disposition of the property.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>(A)<xhtml:span class="EnSpace"/>On or before July 1, 2026, the local authorities shall jointly convene a working group consisting of individuals and organizations representing individuals who were impacted by the Eaton or Palisades Fires, including, but not limited to, homeowners, renters, business owners, displaced workers, community land trusts, mutual aid organizations, and organizations with a primary purpose of supporting affordable homeownership, rental housing, and small business development, to provide input to the local authorities on the development of community rebuilding and disposition guidelines that, upon adoption by the city or county, shall govern new development or disposition of any fire-damaged commercial real property or qualified owner-occupied single-family property that was acquired by a qualified entity.</xhtml:p><xhtml:p>(B)<xhtml:span class="EnSpace"/>The working group in subparagraph (

A) may provide input on independent guidelines for the Eaton and Palisades Fires.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection>"?> 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 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 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 of Part of Division of Title 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). <caml:Num>1102.58.</caml:Num><caml:LawSectionVersion id="id_20D6504E-0DE0-4AAA-887B-5E235D3FD437"><caml:Content><xhtml:p>(a)<xhtml:span class="EnSpace"/>An owner that sells a residential real property or fire-damaged commercial real property shall record, or cause to be recorded, a certification of compliance under penalty of perjury at the time of sale, that one of the following applies:</xhtml:p><xhtml:p>(1)<xhtml:span class="EnSpace"/>The owner has complied with the requirements of this article.

The owner shall attach to the certificate of compliance a copy of the notice that the owner sent pursuant to paragraph (1) of subdivision (

b) of

Section 1102.52 to the organizations that have provided notice to the local authority pursuant to

Section 1102.56.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>The owner or transaction is exempt from the requirements of this

article pursuant to

Section 1102.52.</xhtml:p><xhtml:p>(b)<xhtml:span class="EnSpace"/>(1)<xhtml:span class="EnSpace"/>A certification of compliance recorded pursuant to subdivision (

a) shall include the address of the relevant property.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>(A)<xhtml:span class="EnSpace"/>Failure to file the certification of compliance shall be an infraction punishable in accordance with the fine

schedule established pursuant to subdivision (

b) of

Section of the Government Code. Willful or knowing failure to file the certification of compliance shall be punishable by a fine of one thousand dollars ($1,000) per unit of the residential real property for each day of noncompliance.</xhtml:p><xhtml:p>(B)<xhtml:span class="EnSpace"/>Fines under subparagraph (

A) shall be paid following notice and an opportunity for hearing to the local authority in whose jurisdiction the property is located.</xhtml:p><xhtml:p>(c)<xhtml:span class="EnSpace"/>The affordability requirements in subdivision (

b) of

Section 1102.54 shall be contained in a covenant or restriction recorded against the property at the time of sale, which shall run with the land and shall be enforceable, against any owner who violates a covenant or restriction and each successor in interest who continues the violation, by any of the following:</xhtml:p><xhtml:p>(1)<xhtml:span class="EnSpace"/>A resident of a unit subject to this article.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>A residents’ association with members who reside in units subject to this article.</xhtml:p><xhtml:p>(3)<xhtml:span class="EnSpace"/>A former resident of a unit subject to this

article who last resided in that unit.</xhtml:p><xhtml:p>(4)<xhtml:span class="EnSpace"/>An applicant seeking to enforce the covenants or restrictions for a particular unit that is subject to this article, if the applicant meets all of the following criteria:</xhtml:p><xhtml:p>(A)<xhtml:span class="EnSpace"/>Is a person or family of low or moderate income.</xhtml:p><xhtml:p>(B)<xhtml:span class="EnSpace"/>Is able and willing to occupy that particular unit.</xhtml:p><xhtml:p>(C)<xhtml:span class="EnSpace"/>Was denied occupancy of that particular unit due to an alleged breach of a covenant or restriction implementing this article.</xhtml:p><xhtml:p>(D)<xhtml:span class="EnSpace"/>Is on an affordable housing waiting list.</xhtml:p><xhtml:p>(5)<xhtml:span class="EnSpace"/>The Attorney General.</xhtml:p><xhtml:p>(6)<xhtml:span class="EnSpace"/>The local authority.</xhtml:p><xhtml:p>(7)<xhtml:span class="EnSpace"/>An organization that has provided notice to the local authority pursuant to

Section 1102.56.</xhtml:p><xhtml:p>(d)<xhtml:span class="EnSpace"/>(1)<xhtml:span class="EnSpace"/>Any party listed in subdivision (

c) may seek enforcement of any right or provision under this

article in the superior court and, upon prevailing, shall be entitled to the following remedies:</xhtml:p><xhtml:p>(A)<xhtml:span class="EnSpace"/>Actual damages. There shall be a rebuttable presumption that the amount of damages for a violation of

Section 1102.52 is equal to the difference between the price of the property at the time of sale in violation of this

article and the price for which the qualified entity could purchase the property pursuant to this

article at the time that damages are awarded.</xhtml:p><xhtml:p>(B)<xhtml:span class="EnSpace"/>If the owner willfully or knowingly sells the property without complying with this article, the court shall impose additional damages in an amount proportional to the culpability of the owner and the value of the property.

There shall be a rebuttable presumption that the amount is equal to percent of the sale price for a first violation, 20 percent for a second violation, and percent for each subsequent violation.</xhtml:p><xhtml:p>(C)<xhtml:span class="EnSpace"/>Costs and reasonable attorneys’ fees.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>In addition to any other remedy available under this

article or any other law, the superior court may enjoin a sale or other action taken by the owner of the property in violation of this article.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection><caml:LawSection id="id_5D82074B-496F-43A1-B0C0-0A5F2AF32A58"><caml:Num>1102.60.</caml:Num><caml:LawSectionVersion id="id_47C3C553-F133-47B3-9053-E179EB390F3D"><caml:Content><xhtml:p>(a)<xhtml:span class="EnSpace"/>For purposes of this section, “stronger right to purchase” includes, but is not limited to, any of the following:</xhtml:p><xhtml:p>(1)<xhtml:span class="EnSpace"/>Additional eligible qualified entities, including, but not limited to, the tenants or residents of a property or an organization consisting of tenants or residents of a property.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>A longer period of time for a qualified entity, including an organization of tenants or residents, to make or consider an offer, to secure financing, or to otherwise close the deal on purchasing the property.</xhtml:p><xhtml:p>(3)<xhtml:span class="EnSpace"/>A longer term of affordability restrictions on the property and longer terms of tenancy for existing or future tenants.</xhtml:p><xhtml:p>(b)<xhtml:span class="EnSpace"/>Except as provided in subdivision (c), this

article shall not preempt or invalidate a local ordinance, regulation, or other policy that provides a qualified entity with a right of first offer, right of first refusal, or other opportunity to purchase property.</xhtml:p><xhtml:p>(c)<xhtml:span class="EnSpace"/>If a local ordinance, regulation, or other policy conflicts with this article, the provision that provides the qualified entity with a stronger right to purchase the property shall prevail.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection><caml:LawSection id="id_A096E801-B8C1-4175-84F5-B996C409541B"><caml:Num>1102.61.</caml:Num><caml:LawSectionVersion id="id_6478C15C-63BF-471D-AF94-D092A3261A3E"><caml:Content><xhtml:p> The provisions of this

article are severable. If any provision of this

article or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection>"?> 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. <caml:Num>SEC. 2.</caml:Num><caml:ActionLine action="IS_ADDED" xlink:href="urn:caml:codes:CIV:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2F%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'2923.56'%5D)" xlink:label="fractionType: LAW_SECTION" xlink:type="locator">Section 2923.56 is added to the <caml:DocName>Civil Code</caml:DocName>, to read:</caml:ActionLine><caml:Fragment><caml:LawSection id="id_39B8A01C-E4F1-452D-B2AF-C61A3EB8395B"><caml:Num>2923.56.</caml:Num><caml:LawSectionVersion id="id_C331A5A3-8D32-47B0-8BCF-93F93C187D50"><caml:Content><xhtml:p> On and after the effective date of this section, and for six years following the end of a declared disaster or state of emergency resulting from the Eaton or Palisades Fires, a mortgagee, trustee, beneficiary, or authorized agent shall do both of the following within three business days of recording a notice of default against any fire-damaged commercial real property, as defined in subdivision (

f) of

Section 1102.50, or any multifamily residential property meeting the criteria in subparagraph (

B) of paragraph (1) of subdivision (

k) of

Section 1102.50 and located within the Los Angeles Fire Impact Area, as defined in subdivision (

a) of

Section 1102.50:</xhtml:p><xhtml:p>(a)<xhtml:span class="EnSpace"/>Provide the mortgagor or trustor with a list of the qualified entities that have provided notice to the local authority pursuant to

Section 1102.56 of their interest in purchasing property subject to

Article 1.6 (commencing with

Section 1102.50) of

Chapter of Title of Part of Division 2.</xhtml:p><xhtml:p>(b)<xhtml:span class="EnSpace"/>Post a copy of the notice of default in a conspicuous place on the property.

However, if access to the property is denied because a common entrance to the property is restricted by a guard gate or similar impediment, the notice may be posted at that guard gate or similar impediment.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection></caml:Fragment></caml:BillSection><caml:BillSection id="id_7D52174D-C121-43D6-A3F5-E38B5D19DC8E"><caml:Num>SEC. 3.</caml:Num><caml:Content><xhtml:p>(a)<xhtml:span class="EnSpace"/>The Legislature finds and declares all of the following:</xhtml:p><xhtml:p>(1)<xhtml:span class="EnSpace"/>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.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>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.</xhtml:p><xhtml:p>(3)<xhtml:span class="EnSpace"/>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.</xhtml:p><xhtml:p>(4)<xhtml:span class="EnSpace"/>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.</xhtml:p><xhtml:p>(5)<xhtml:span class="EnSpace"/>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.</xhtml:p><xhtml:p>(6)<xhtml:span class="EnSpace"/>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.</xhtml:p><xhtml:p>(7)<xhtml:span class="EnSpace"/>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.</xhtml:p><xhtml:p>(8)<xhtml:span class="EnSpace"/>Preventing displacement and loss of community assets and culture following a disaster is a matter of statewide concern.

Moreover, California has an interest in ensuring community-based organizations have opportunities to acquire and hold property to increase access to affordable housing, homeownership opportunities, and community-serving small businesses.</xhtml:p><xhtml:p>(9)<xhtml:span class="EnSpace"/>The anti-community 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.</xhtml:p><xhtml:p>(10)<xhtml:span class="EnSpace"/>It is for these reasons that it is of statewide importance that those anti-community displacement mechanisms and protections are enacted.</xhtml:p><xhtml:p>(11)<xhtml:span class="EnSpace"/>As wildfire seasons have become more devastating and their threat looms over the entirety of the state, it is critical that all local jurisdictions, including charter cities, have these same protections apply to them.</xhtml:p><xhtml:p>(b)<xhtml:span class="EnSpace"/>Therefore, the Legislature finds and declares that the provision of adequate housing, in light of the severe shortage of housing at all income levels in the state, is a matter of statewide concern and is not a municipal affair as that term is used in

Section of

Article XI of the California Constitution. Therefore,

Section of this act adding

Article 1.6 (commencing with

Section 1102.50) to

Chapter of Title of Part of Division of the Civil Code and

Section of this act adding

Section 2923.56 to the Civil Code apply to all cities, including charter cities.</xhtml:p></caml:Content></caml:BillSection>"?>

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 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. <caml:Num>SEC. 5.</caml:Num><caml:Content><xhtml:p>No reimbursement is required by this act pursuant to

Section of

Article XIII<xhtml:span class="ThinSpace"/>B of the California Constitution for certain costs that may be incurred by a local agency or school district because, in that regard, this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of

Section of the Government Code, or changes the definition of a crime within the meaning of

Section of

Article XIII<xhtml:span class="ThinSpace"/>B of the California Constitution.</xhtml:p><xhtml:p>However, if the Commission on State Mandates determines that this act contains other 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 of Title of the Government Code.</xhtml:p></caml:Content></caml:BillSection>"?>

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 of Title of the Government Code.

Document details

CollectionCalifornia Bills
CitationSB 658
Date2025-04-10
Typebill
Languageen
SourceCA_BILL
Identifier20250SB65897AMD

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

SB 658

California Bills

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

SB 658

California Bills

20250SB__065897AMD INTRODUCED 2025-02-20 AMENDED_SENATE 2025-03-26 AMENDED_SENATE 2025-04-10 2025 SB AMD Introduced by Senator Pérez LEAD_AUTHOR SENATE Pérez

An act to add and repeal

Article 1.6 (commencing with

Section 1102.50) of

Chapter of Title of Part of Division of the Civil Code, relating to real property. real property Real property impacted by the Eaton or Palisades Fires: notification of owner’s intent to sell. 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 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 require an owner that sells a property subject to the bill’s provisions to record, or cause to be recorded, a certification of compliance under penalty of perjury at the time of sale, as specified, and would make failure to file the certificate an infraction punishable as specified. By expanding the crime of perjury and creating a new crime, the bill would impose a state-mandated local program.</xhtml:p><xhtml:p>This bill would impose additional requirements on a qualified entity that purchases, pursuant to these provisions, property that is, or was on January 7, 2025, occupied by tenants.

In this regard, the bill would require the qualified entity to retain all existing tenancies and to restore tenancies terminated due to the Eaton or Palisades Fires, as specified. The bill would require the qualified entity to make vacant units of the property affordable to persons and families of specified income levels that would depend on the average rental rate or housing cost of the units, as specified. The bill would require these affordability requirements to be contained in a covenant or restriction recorded against the property at the time of sale.

The bill would prohibit the qualified entity from selling the property except to a qualified purchaser, as provided.

The bill would make these requirements applicable to successive owners.</xhtml:p><xhtml:p>This bill, on or before July 1, 2026, would require the cities that have jurisdiction in the area and the County of Los Angeles to jointly convene a working group consisting of individuals and organizations representing individuals who were impacted by the fires, as specified, to provide input on the development of guidelines that, upon adoption by the city or county, would govern new development and disposition of single-family property that was damaged or destroyed by the fires and was used as the owner’s primary residence on January 7, 2025, or fire-damaged commercial real property that a qualified entity purchases.

By imposing new duties on those cities and the County of Los Angeles, the bill would impose a state-mandated local program. The bill would require a qualified entity that purchases such property, and successive owners, to adhere to those guidelines.</xhtml:p><xhtml:p>This bill would grant a private cause of action to specified entities to enforce the provisions of the bill, and would allow for civil remedies, as specified.</xhtml:p><xhtml:p>Existing law imposes various requirements to be satisfied prior to exercising a power of sale under a mortgage or deed of trust.

Existing law, with respect to residential real property containing up to dwelling units, requires a mortgagee, trustee, beneficiary, or authorized agent to provide to the mortgagor or trustor a copy of the recorded notice of default and a copy of the recorded notice of sale.</xhtml:p><xhtml:p>This bill would require a mortgagee, trustee, beneficiary, or authorized agent, within business days of recording a notice of default against multifamily residential real property or fire-damaged commercial real property subject to the bill’s provisions described above, to provide to the mortgagor or trustor a list of qualified entities, and to post a copy of the notice of default in a conspicuous place on the property, as provided.

The bill would make these provisions effective for years following the expiration of a declared disaster or state of emergency resulting from the Eaton or Palisades Fires.</xhtml:p><xhtml:p>The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.</xhtml:p>"?> 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.</xhtml:p><xhtml:p>This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.</xhtml:p><xhtml:p>With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.</xhtml:p>"?> 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. MAJORITY NO YES YES NO NO NO NO NO NO NO The people of the State of California do enact as follows:

SECTION

Article 1.6 (commencing with

Section 1102.50) is added to

Chapter of Title of Part of Division of the Civil Code , to read: 1.6. Post Disaster Community Stabilization Act 1102.50. 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)<xhtml:span class="EnSpace"/>“Affordable” in reference to housing cost, including in the case of resident-owned housing units, has the same meaning as in

Section 50052.5 of the Health and Safety Code.</xhtml:p><xhtml:p>(c)<xhtml:span class="EnSpace"/>“Affordable” in reference to rent has the same meaning as in

Section of the Health and Safety Code.</xhtml:p><xhtml:p>(d)<xhtml:span class="EnSpace"/>“Area median income” has the same meaning as in

Section of the Health and Safety Code.</xhtml:p><xhtml:p>(e)</xhtml:p>"?> (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 of the Government Code.

(3) A local emergency proclaimed by a local governing body or official pursuant to

Section of the Government Code. (f)<xhtml:span class="EnSpace"/>“Fire-damaged commercial real property” means commercial real property located in the Los Angeles Fire Impact Area that was damaged or destroyed by the Eaton or Palisades Fires.</xhtml:p><xhtml:p>(g)<xhtml:span class="EnSpace"/>“Local authority” means the city that has jurisdiction of the area in which the property is located or, for an unincorporated area in which the property is located, the County of Los Angeles.</xhtml:p><xhtml:p>(h)<xhtml:span class="EnSpace"/>“Lower income households” has the same meaning as in

Section 50079.5 of the Health and Safety Code.</xhtml:p><xhtml:p>(i)<xhtml:span class="EnSpace"/>“Persons and families of low or moderate income” has the same meaning as in

Section of the Health and Safety Code.</xhtml:p>"?> (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. (j)</xhtml:p>"?> (d) “Qualified entity” means an organization that has provided notice to the County of Los Angeles, pursuant to

Section 1102.56. (k)<xhtml:span class="EnSpace"/>(1)<xhtml:span class="EnSpace"/>“Residential real property” means any of the following:</xhtml:p><xhtml:p>(A)<xhtml:span class="EnSpace"/>A single-family residential property that meets any of the following criteria:</xhtml:p><xhtml:p>(i)<xhtml:span class="EnSpace"/>The property is occupied by a tenant.</xhtml:p><xhtml:p>(ii)<xhtml:span class="EnSpace"/>The property was damaged or destroyed by the Eaton or Palisades Fires and was occupied by a tenant as of January 7, 2025.</xhtml:p><xhtml:p>(iii)<xhtml:span class="EnSpace"/>The property was damaged or destroyed by the Eaton or Palisades Fires and was used as the owner’s primary residence on January 7, 2025.</xhtml:p><xhtml:p>(B)<xhtml:span class="EnSpace"/>A multifamily residential property that meets either of the following criteria:</xhtml:p><xhtml:p>(i)<xhtml:span class="EnSpace"/>The property is vacant or occupied, in whole or in part, by tenants.</xhtml:p><xhtml:p>(ii)<xhtml:span class="EnSpace"/>The property was damaged or destroyed by the Eaton or Palisades Fires and was occupied by a tenant as of January 7, 2025.</xhtml:p><xhtml:p>(C)<xhtml:span class="EnSpace"/>A mobilehome park, as defined in

Section 798.4.</xhtml:p><xhtml:p>(D)<xhtml:span class="EnSpace"/>A manufactured housing community, as defined in

Section 18210.7 of the Health and Safety Code.</xhtml:p><xhtml:p>(E)<xhtml:span class="EnSpace"/>A mixed-used property that meets either of the following criteria:</xhtml:p><xhtml:p>(i)<xhtml:span class="EnSpace"/>The property is vacant or occupied, in whole or in part, by a tenant.</xhtml:p><xhtml:p>(ii)<xhtml:span class="EnSpace"/>The property was damaged or destroyed by the Eaton or Palisades Fires and was occupied by a tenant as of January 7, 2025.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>“Residential real property” does not include any of the following:</xhtml:p><xhtml:p>(A)<xhtml:span class="EnSpace"/>A property that is currently subject to a regulatory agreement with a governmental agency that restricts rents to occupancy by low-income households and is being transferred to a nonprofit entity, or a limited partnership or limited liability company controlled by a nonprofit, that agrees to a condition of the sale or transfer to record a new regulatory agreement with a governmental agency that restricts occupancy to eligible low-income households for at least years.</xhtml:p><xhtml:p>(B)<xhtml:span class="EnSpace"/>A property owned by a local, state, or federal government.</xhtml:p><xhtml:p>(C)<xhtml:span class="EnSpace"/>A property owned by and operated as a hospital, convent, monastery, extended care facility, or convalescent home.</xhtml:p><xhtml:p>(D)<xhtml:span class="EnSpace"/>A dormitory owned and operated by an educational institution.</xhtml:p><xhtml:p>(E)<xhtml:span class="EnSpace"/>A property owned by a corporation that is owned and controlled by a majority of residents who occupy the property and are at least years of age.</xhtml:p><xhtml:p>(<xhtml:i>l</xhtml:i>)</xhtml:p>"?> (e) “State of emergency” has the same meaning as in

Section of the Government Code. <caml:Num>1102.52.</caml:Num><caml:LawSectionVersion id="id_E32C4740-CDF9-4E2B-B4A5-1097E3FEC747"><caml:Content><xhtml:p>(a)<xhtml:span class="EnSpace"/>On and after the effective date of this section, and for six years following the expiration of a declared disaster or state of emergency resulting from the Eaton or Palisades Fires, an </xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection>"?> 1102.54.

An owner of real property located within the 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. (1)<xhtml:span class="EnSpace"/>Offering the residential real property or fire-damaged commercial real property for sale to any purchaser other than a qualified entity.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>Soliciting any offer to purchase the residential real property or fire-damaged commercial real property from any purchaser other than a qualified entity.</xhtml:p><xhtml:p>(3)<xhtml:span class="EnSpace"/>Accepting any unsolicited offer to purchase residential real property or fire-damaged commercial real property from any party other than a qualified entity.</xhtml:p><xhtml:p>(4)<xhtml:span class="EnSpace"/>Entering into a contract for sale of the residential real property or fire-damaged commercial real property with any party other than a qualified entity, whether through listing or off-market sale, whether individual properties or a bundled portfolio of properties.</xhtml:p><xhtml:p>(b)<xhtml:span class="EnSpace"/>(1)<xhtml:span class="EnSpace"/>An owner of real property described in subdivision (

a) shall send a notice of the owner’s intent to sell the property to each qualified entity.</xhtml:p><xhtml:p>(2)</xhtml:p>"?> (

a) The notice described in this

section may include all of the following, as applicable: (A)</xhtml:p>"?>

(1) The location and a description of the real property. (B)</xhtml:p>"?>

(2) The unit number or other designation of each rental unit of the real property. (C)</xhtml:p>"?>

(3) The number of bedrooms and bathrooms in each residential rental unit. (D)</xhtml:p>"?>

(4) For commercial real property, the square footage. (E)</xhtml:p>"?>

(5) The annual expenses for the real property, including, but not limited to, management, insurance, utilities, and maintenance costs. (F)</xhtml:p>"?>

(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. (G)</xhtml:p>"?>

(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. (c)<xhtml:span class="EnSpace"/>(1)<xhtml:span class="EnSpace"/>A qualified entity may, within days of receipt of the notice required by subdivision (b), send a written notice to the property owner expressing interest in purchasing the property.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>If the property owner does not receive a notice expressing interest in purchasing the property from any qualified entity within days of the last date on which a qualified entity received notice under subdivision (b), the property owner may proceed in selling the property to another person or entity.</xhtml:p><xhtml:p>(d)<xhtml:span class="EnSpace"/>If the property owner receives a notice expressing interest in purchasing the property from a qualified entity pursuant to paragraph (1) of subdivision (c), the property owner shall provide the qualified entity with a disclosure package that provides, at a minimum, all of the following information:</xhtml:p><xhtml:p>(1)<xhtml:span class="EnSpace"/>The move-in date of each tenant of the real property.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>Base rent for each rental unit of the real property.</xhtml:p><xhtml:p>(3)<xhtml:span class="EnSpace"/>The costs that are passed through to each tenant, if any.</xhtml:p><xhtml:p>(4)<xhtml:span class="EnSpace"/>Whether each tenant has a written lease or rental agreement and the terms of those tenancies.</xhtml:p><xhtml:p>(5)<xhtml:span class="EnSpace"/>Contact information for each tenant.</xhtml:p><xhtml:p>(6)<xhtml:span class="EnSpace"/>For properties where the owner opted out of Los Angeles County Public Works’ Government-Run Debris Removal Program, a copy of the EPIC-LA Fire Debris Removal Permit, and a detailed description and substantiation of all repair, remediation, and removal activities that have occurred at the property.</xhtml:p><xhtml:p>(e)<xhtml:span class="EnSpace"/>Within days of receiving the disclosure package pursuant to subdivision (d), the qualified entity shall make reasonable efforts to inform the tenants of the qualified entity’s interest in purchasing the residential real property or fire-damaged commercial real property, and request to meet and confer with the property owner to confirm their interest in purchasing the property.

The property owner shall meet and confer with the qualified entity within the applicable timeframe in paragraph (1) of subdivision (

f) upon request. If the qualified entity does not request to meet and confer with the property owner to confirm their interest in purchasing the property within days of receiving the disclosure package, the property owner may proceed in selling the property to another party.</xhtml:p><xhtml:p>(f)<xhtml:span class="EnSpace"/>(1)<xhtml:span class="EnSpace"/>A qualified entity desiring to purchase real property described in subdivision (

a) that consists of five or more units shall submit an offer to purchase the property so that it reaches the property owner within days of the date on which the qualified entity received the disclosure package required pursuant to subdivision (d).

If the property consists of four or fewer units, the qualified entity desiring to purchase the real property shall submit an offer to purchase the property so that it reaches the property owner within days of the date on which the qualified entity received the disclosure package.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>If a qualified entity submits an offer to purchase the property, it shall simultaneously give notice to each tenant that it has made an offer to purchase the property.</xhtml:p><xhtml:p>(3)<xhtml:span class="EnSpace"/>If the property owner does not receive an offer to purchase the property within the applicable timeframes in paragraph (1), the property owner may proceed in selling the property to another party.</xhtml:p><xhtml:p>(g)<xhtml:span class="EnSpace"/>(1)<xhtml:span class="EnSpace"/>If the property owner accepts an offer submitted pursuant to this section, the property owner and the qualified entity shall attempt to, within days of acceptance of the offer, enter into a voluntary agreement setting the timeline within which the qualified entity shall secure financing and within which both parties shall close the deal.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>If the property owner and the qualified entity fail to enter into a voluntary agreement setting the timeline within which to secure financing and close the deal, the following timelines shall govern, unless the parties later enter into a voluntary agreement:</xhtml:p><xhtml:p>(A)<xhtml:span class="EnSpace"/>(i)<xhtml:span class="EnSpace"/>If the property is a single-family residential real property, the property owner shall afford the qualified entity days after the date the offer was accepted to secure financing.</xhtml:p><xhtml:p>(ii)<xhtml:span class="EnSpace"/>If, within the days afforded pursuant to clause (i), the qualified entity presents the property owner with the written statement of a lending institution or agency that the institution or agency estimates that a decision with respect to financing or financial assistance will be made within days after the date the offer was accepted, the property owner shall afford an extension of time consistent with the written estimate.</xhtml:p><xhtml:p>(B)<xhtml:span class="EnSpace"/>(i)<xhtml:span class="EnSpace"/>If the property is a multifamily residential real property containing two to four units, the property owner shall afford the qualified entity days after the date the offer was accepted to secure financing.</xhtml:p><xhtml:p>(ii)<xhtml:span class="EnSpace"/>If, within the days afforded pursuant to clause (i), the qualified entity presents the property owner with the written statement of a lending institution or agency that the institution or agency estimates that a decision with respect to financing or financial assistance will be made within days after the date the offer was accepted, the property owner shall afford an extension of time consistent with the written estimate.</xhtml:p><xhtml:p>(C)<xhtml:span class="EnSpace"/>(i)<xhtml:span class="EnSpace"/>If the property is a multifamily residential real property containing more than four units or a fire-damaged commercial real property, the property owner shall afford the qualified entity days after the date the offer was accepted to secure financing.</xhtml:p><xhtml:p>(ii)<xhtml:span class="EnSpace"/>If, within the days afforded pursuant to clause (i), the qualified entity presents the property owner with the written statement of a lending institution or agency that the institution or agency estimates that a decision with respect to financing or financial assistance will be made within days after the date the offer was accepted, the property owner shall afford an extension of time consistent with the written estimate.</xhtml:p><xhtml:p>(3)<xhtml:span class="EnSpace"/>If the qualified entity does not secure financing within the timeframe agreed upon pursuant to a voluntary agreement, or within the applicable timeframes in paragraph (2) in the absence of a voluntary agreement, the property owner may proceed in selling the property to another party.</xhtml:p><xhtml:p>(h)<xhtml:span class="EnSpace"/>(1)<xhtml:span class="EnSpace"/>A property owner may reject any offer submitted to purchase real property pursuant to this section.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>If the property owner rejects an offer from a qualified entity submitted pursuant to subdivision (f), the property owner may sell the property to any other party subject to paragraph (3).</xhtml:p><xhtml:p>(3)<xhtml:span class="EnSpace"/>If the party from whom the property owner intends to accept an offer is not a qualified entity, the property owner shall do both of the following:</xhtml:p><xhtml:p>(A)<xhtml:span class="EnSpace"/>Notify the qualified entity that submitted a rejected offer that the property owner intends to accept an offer from a party that is not a qualified entity.</xhtml:p><xhtml:p>(B)<xhtml:span class="EnSpace"/>Provide the qualified entity that submitted a rejected offer with days to invoke a right of first refusal to match the price of the offer on the same terms as that offer.

The qualified entity may invoke its right of first refusal by submitting a notice that reaches the property owner within days of the date on which the qualified entity received the notice described in subparagraph (A).</xhtml:p><xhtml:p>(4)<xhtml:span class="EnSpace"/>If a qualified entity does not receive the notice required by subdivision (

b) and the property owner accepts an offer from a party that is not a qualified entity, the qualified entity shall be given days to invoke a right of first refusal to match the price of the offer on the same terms as that offer. The qualified entity may invoke its right of first refusal by submitting a notice that reaches the property owner within days of the date on which the property owner accepted the offer submitted by the party that is not a qualified entity.</xhtml:p><xhtml:p>(i)<xhtml:span class="EnSpace"/>Notices and the disclosure package required pursuant to this

section shall be delivered by certified mail and additionally by email if email addresses are available.</xhtml:p><xhtml:p>(j)<xhtml:span class="EnSpace"/>(1)<xhtml:span class="EnSpace"/>The Department of Forestry and Fire Protection shall provide the local authority with data describing the fire perimeter sufficient for the local authority to determine which ZIP Codes are in the Los Angeles Fire Impact Area.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>Following the receipt of the data in paragraph (1), the local authority shall issue a bulletin to inform property owners which ZIP Codes are in the Los Angeles Fire Impact Area.</xhtml:p><xhtml:p>(k)<xhtml:span class="EnSpace"/>This

section shall not apply to the following transfers of real property:</xhtml:p><xhtml:p>(1)<xhtml:span class="EnSpace"/>An inter vivos transfer, whether or not for consideration, between any of the following:</xhtml:p><xhtml:p>(A)<xhtml:span class="EnSpace"/>Spouses.</xhtml:p><xhtml:p>(B)<xhtml:span class="EnSpace"/>Domestic partners.</xhtml:p><xhtml:p>(C)<xhtml:span class="EnSpace"/>A parent and child.</xhtml:p><xhtml:p>(D)<xhtml:span class="EnSpace"/>Siblings.</xhtml:p><xhtml:p>(E)<xhtml:span class="EnSpace"/>A sibling of a parent and a child of that parent.</xhtml:p><xhtml:p>(F)<xhtml:span class="EnSpace"/>A grandparent and grandchild.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>A transfer for consideration by a decedent’s estate to members of the decedent’s family if the consideration arising from the transfer will pass from the decedent’s estate to, or solely for the benefit of, a charity.

For purposes of this paragraph, “members of the decedent’s family” includes all of the following:</xhtml:p><xhtml:p>(A)<xhtml:span class="EnSpace"/>A spouse, domestic partner, parent, child, grandparent, or grandchild.</xhtml:p><xhtml:p>(B)<xhtml:span class="EnSpace"/>A trust for the primary benefit of a spouse, domestic partner, parent, child, grandparent, or grandchild.</xhtml:p><xhtml:p>(3)<xhtml:span class="EnSpace"/>A transfer of bare legal title into a revocable trust, without actual consideration for the transfer, where the transferor is the current beneficiary of the trust.</xhtml:p><xhtml:p>(4)<xhtml:span class="EnSpace"/>A transfer to a named beneficiary of a revocable trust by reason of the death of the grantor of the revocable trust.</xhtml:p><xhtml:p>(5)<xhtml:span class="EnSpace"/>A transfer pursuant to court order or court-approved settlement.</xhtml:p><xhtml:p>(6)<xhtml:span class="EnSpace"/>A transfer by eminent domain or under threat of eminent domain.</xhtml:p>"?> <caml:Num>1102.54.</caml:Num><caml:LawSectionVersion id="id_A42FE4E2-60C5-4A93-842F-F99DA56D610F"><caml:Content><xhtml:p>(a)<xhtml:span class="EnSpace"/>For the purposes of this section, the following

definitions apply:</xhtml:p><xhtml:p>(1)<xhtml:span class="EnSpace"/>“Qualified owner-occupied single-family property” means a single-family residential property that was damaged or destroyed by the Eaton or Palisades Fires and was used as the owner’s primary residence on January 7, 2025.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>“Qualified purchaser” means a person or family of low or moderate income or a cooperative corporation dedicated to affordable housing.</xhtml:p><xhtml:p>(3)<xhtml:span class="EnSpace"/>“Qualified tenant-occupied property” means any of the following real property that is currently occupied by a tenant or was occupied by a tenant as of January 7, 2025, and is located in the Los Angeles Fire Impact Area:</xhtml:p><xhtml:p>(A)<xhtml:span class="EnSpace"/>Mixed-use property.</xhtml:p><xhtml:p>(B)<xhtml:span class="EnSpace"/>Multifamily residential real property.</xhtml:p><xhtml:p>(C)<xhtml:span class="EnSpace"/>Single-family residential property.</xhtml:p><xhtml:p>(b)<xhtml:span class="EnSpace"/>A qualified entity that acquires qualified tenant-occupied property pursuant to

Section 1102.52, as well as all successive owners, shall be subject to all of the following:</xhtml:p><xhtml:p>(1)<xhtml:span class="EnSpace"/>(A)<xhtml:span class="EnSpace"/>(i)<xhtml:span class="EnSpace"/>All existing tenancies of the qualified tenant-occupied property shall be retained on the same terms that were in effect before the acquisition, except as permitted by state and local law.</xhtml:p><xhtml:p>(ii)<xhtml:span class="EnSpace"/>The qualified entity shall offer to restore, on the same terms that were in effect on January 7, 2025, the tenancy of a former tenant of the qualified tenant-occupied property if the tenancy existed on January 7, 2025, and was terminated on or after January 7, 2025, due to damage to or destruction of the property caused by the Eaton or Palisades Fires.

All tenancies restored pursuant to this clause shall be retained on those same terms, except as permitted by state and local law.</xhtml:p><xhtml:p>(iii)<xhtml:span class="EnSpace"/>An existing or restored tenancy described in clause (

i) or (ii) shall not be terminated for failure to meet income restrictions imposed by this section.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>(A)<xhtml:span class="EnSpace"/>Except as provided in subparagraph (B), the qualified entity shall ensure that vacant units of the qualified tenant-occupied property are filled with persons and families of low or moderate income, and that the housing cost or rent for those units is affordable to persons and families of low or moderate income.</xhtml:p><xhtml:p>(B)<xhtml:span class="EnSpace"/>If the average rental rate or housing cost of the units of a qualified tenant-occupied property exceeds that which is affordable to lower income households, the qualified entity shall make vacant units available at a rent or housing cost that is affordable to persons and families whose incomes do not exceed percent of the area median income until the average rental rate is no greater than that which is affordable to lower income households.</xhtml:p><xhtml:p>(3)<xhtml:span class="EnSpace"/>Once acquired by a qualified entity, the qualified tenant-occupied property shall not be sold except to a qualified purchaser and for not more than an affordable housing cost.

Notwithstanding other provisions in this section, a qualified entity may sell the dwelling units of a qualified tenant-occupied property to a qualified purchaser if the mortgage and property tax payments anticipated to be paid by the qualified purchaser do not exceed an affordable housing cost.</xhtml:p><xhtml:p>(c)<xhtml:span class="EnSpace"/>(1)<xhtml:span class="EnSpace"/>A qualified entity that acquires fire-damaged commercial real property or qualified owner-occupied single-family property, as well as all successive owners, shall adhere to the community rebuilding and disposition guidelines developed pursuant to paragraph (2) for any new development or disposition of the property.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>(A)<xhtml:span class="EnSpace"/>On or before July 1, 2026, the local authorities shall jointly convene a working group consisting of individuals and organizations representing individuals who were impacted by the Eaton or Palisades Fires, including, but not limited to, homeowners, renters, business owners, displaced workers, community land trusts, mutual aid organizations, and organizations with a primary purpose of supporting affordable homeownership, rental housing, and small business development, to provide input to the local authorities on the development of community rebuilding and disposition guidelines that, upon adoption by the city or county, shall govern new development or disposition of any fire-damaged commercial real property or qualified owner-occupied single-family property that was acquired by a qualified entity.</xhtml:p><xhtml:p>(B)<xhtml:span class="EnSpace"/>The working group in subparagraph (

A) may provide input on independent guidelines for the Eaton and Palisades Fires.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection>"?> 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 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 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 of Part of Division of Title 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). <caml:Num>1102.58.</caml:Num><caml:LawSectionVersion id="id_20D6504E-0DE0-4AAA-887B-5E235D3FD437"><caml:Content><xhtml:p>(a)<xhtml:span class="EnSpace"/>An owner that sells a residential real property or fire-damaged commercial real property shall record, or cause to be recorded, a certification of compliance under penalty of perjury at the time of sale, that one of the following applies:</xhtml:p><xhtml:p>(1)<xhtml:span class="EnSpace"/>The owner has complied with the requirements of this article.

The owner shall attach to the certificate of compliance a copy of the notice that the owner sent pursuant to paragraph (1) of subdivision (

b) of

Section 1102.52 to the organizations that have provided notice to the local authority pursuant to

Section 1102.56.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>The owner or transaction is exempt from the requirements of this

article pursuant to

Section 1102.52.</xhtml:p><xhtml:p>(b)<xhtml:span class="EnSpace"/>(1)<xhtml:span class="EnSpace"/>A certification of compliance recorded pursuant to subdivision (

a) shall include the address of the relevant property.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>(A)<xhtml:span class="EnSpace"/>Failure to file the certification of compliance shall be an infraction punishable in accordance with the fine

schedule established pursuant to subdivision (

b) of

Section of the Government Code. Willful or knowing failure to file the certification of compliance shall be punishable by a fine of one thousand dollars ($1,000) per unit of the residential real property for each day of noncompliance.</xhtml:p><xhtml:p>(B)<xhtml:span class="EnSpace"/>Fines under subparagraph (

A) shall be paid following notice and an opportunity for hearing to the local authority in whose jurisdiction the property is located.</xhtml:p><xhtml:p>(c)<xhtml:span class="EnSpace"/>The affordability requirements in subdivision (

b) of

Section 1102.54 shall be contained in a covenant or restriction recorded against the property at the time of sale, which shall run with the land and shall be enforceable, against any owner who violates a covenant or restriction and each successor in interest who continues the violation, by any of the following:</xhtml:p><xhtml:p>(1)<xhtml:span class="EnSpace"/>A resident of a unit subject to this article.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>A residents’ association with members who reside in units subject to this article.</xhtml:p><xhtml:p>(3)<xhtml:span class="EnSpace"/>A former resident of a unit subject to this

article who last resided in that unit.</xhtml:p><xhtml:p>(4)<xhtml:span class="EnSpace"/>An applicant seeking to enforce the covenants or restrictions for a particular unit that is subject to this article, if the applicant meets all of the following criteria:</xhtml:p><xhtml:p>(A)<xhtml:span class="EnSpace"/>Is a person or family of low or moderate income.</xhtml:p><xhtml:p>(B)<xhtml:span class="EnSpace"/>Is able and willing to occupy that particular unit.</xhtml:p><xhtml:p>(C)<xhtml:span class="EnSpace"/>Was denied occupancy of that particular unit due to an alleged breach of a covenant or restriction implementing this article.</xhtml:p><xhtml:p>(D)<xhtml:span class="EnSpace"/>Is on an affordable housing waiting list.</xhtml:p><xhtml:p>(5)<xhtml:span class="EnSpace"/>The Attorney General.</xhtml:p><xhtml:p>(6)<xhtml:span class="EnSpace"/>The local authority.</xhtml:p><xhtml:p>(7)<xhtml:span class="EnSpace"/>An organization that has provided notice to the local authority pursuant to

Section 1102.56.</xhtml:p><xhtml:p>(d)<xhtml:span class="EnSpace"/>(1)<xhtml:span class="EnSpace"/>Any party listed in subdivision (

c) may seek enforcement of any right or provision under this

article in the superior court and, upon prevailing, shall be entitled to the following remedies:</xhtml:p><xhtml:p>(A)<xhtml:span class="EnSpace"/>Actual damages. There shall be a rebuttable presumption that the amount of damages for a violation of

Section 1102.52 is equal to the difference between the price of the property at the time of sale in violation of this

article and the price for which the qualified entity could purchase the property pursuant to this

article at the time that damages are awarded.</xhtml:p><xhtml:p>(B)<xhtml:span class="EnSpace"/>If the owner willfully or knowingly sells the property without complying with this article, the court shall impose additional damages in an amount proportional to the culpability of the owner and the value of the property.

There shall be a rebuttable presumption that the amount is equal to percent of the sale price for a first violation, 20 percent for a second violation, and percent for each subsequent violation.</xhtml:p><xhtml:p>(C)<xhtml:span class="EnSpace"/>Costs and reasonable attorneys’ fees.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>In addition to any other remedy available under this

article or any other law, the superior court may enjoin a sale or other action taken by the owner of the property in violation of this article.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection><caml:LawSection id="id_5D82074B-496F-43A1-B0C0-0A5F2AF32A58"><caml:Num>1102.60.</caml:Num><caml:LawSectionVersion id="id_47C3C553-F133-47B3-9053-E179EB390F3D"><caml:Content><xhtml:p>(a)<xhtml:span class="EnSpace"/>For purposes of this section, “stronger right to purchase” includes, but is not limited to, any of the following:</xhtml:p><xhtml:p>(1)<xhtml:span class="EnSpace"/>Additional eligible qualified entities, including, but not limited to, the tenants or residents of a property or an organization consisting of tenants or residents of a property.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>A longer period of time for a qualified entity, including an organization of tenants or residents, to make or consider an offer, to secure financing, or to otherwise close the deal on purchasing the property.</xhtml:p><xhtml:p>(3)<xhtml:span class="EnSpace"/>A longer term of affordability restrictions on the property and longer terms of tenancy for existing or future tenants.</xhtml:p><xhtml:p>(b)<xhtml:span class="EnSpace"/>Except as provided in subdivision (c), this

article shall not preempt or invalidate a local ordinance, regulation, or other policy that provides a qualified entity with a right of first offer, right of first refusal, or other opportunity to purchase property.</xhtml:p><xhtml:p>(c)<xhtml:span class="EnSpace"/>If a local ordinance, regulation, or other policy conflicts with this article, the provision that provides the qualified entity with a stronger right to purchase the property shall prevail.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection><caml:LawSection id="id_A096E801-B8C1-4175-84F5-B996C409541B"><caml:Num>1102.61.</caml:Num><caml:LawSectionVersion id="id_6478C15C-63BF-471D-AF94-D092A3261A3E"><caml:Content><xhtml:p> The provisions of this

article are severable. If any provision of this

article or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection>"?> 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. <caml:Num>SEC. 2.</caml:Num><caml:ActionLine action="IS_ADDED" xlink:href="urn:caml:codes:CIV:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2F%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'2923.56'%5D)" xlink:label="fractionType: LAW_SECTION" xlink:type="locator">Section 2923.56 is added to the <caml:DocName>Civil Code</caml:DocName>, to read:</caml:ActionLine><caml:Fragment><caml:LawSection id="id_39B8A01C-E4F1-452D-B2AF-C61A3EB8395B"><caml:Num>2923.56.</caml:Num><caml:LawSectionVersion id="id_C331A5A3-8D32-47B0-8BCF-93F93C187D50"><caml:Content><xhtml:p> On and after the effective date of this section, and for six years following the end of a declared disaster or state of emergency resulting from the Eaton or Palisades Fires, a mortgagee, trustee, beneficiary, or authorized agent shall do both of the following within three business days of recording a notice of default against any fire-damaged commercial real property, as defined in subdivision (

f) of

Section 1102.50, or any multifamily residential property meeting the criteria in subparagraph (

B) of paragraph (1) of subdivision (

k) of

Section 1102.50 and located within the Los Angeles Fire Impact Area, as defined in subdivision (

a) of

Section 1102.50:</xhtml:p><xhtml:p>(a)<xhtml:span class="EnSpace"/>Provide the mortgagor or trustor with a list of the qualified entities that have provided notice to the local authority pursuant to

Section 1102.56 of their interest in purchasing property subject to

Article 1.6 (commencing with

Section 1102.50) of

Chapter of Title of Part of Division 2.</xhtml:p><xhtml:p>(b)<xhtml:span class="EnSpace"/>Post a copy of the notice of default in a conspicuous place on the property.

However, if access to the property is denied because a common entrance to the property is restricted by a guard gate or similar impediment, the notice may be posted at that guard gate or similar impediment.</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection></caml:Fragment></caml:BillSection><caml:BillSection id="id_7D52174D-C121-43D6-A3F5-E38B5D19DC8E"><caml:Num>SEC. 3.</caml:Num><caml:Content><xhtml:p>(a)<xhtml:span class="EnSpace"/>The Legislature finds and declares all of the following:</xhtml:p><xhtml:p>(1)<xhtml:span class="EnSpace"/>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.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>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.</xhtml:p><xhtml:p>(3)<xhtml:span class="EnSpace"/>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.</xhtml:p><xhtml:p>(4)<xhtml:span class="EnSpace"/>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.</xhtml:p><xhtml:p>(5)<xhtml:span class="EnSpace"/>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.</xhtml:p><xhtml:p>(6)<xhtml:span class="EnSpace"/>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.</xhtml:p><xhtml:p>(7)<xhtml:span class="EnSpace"/>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.</xhtml:p><xhtml:p>(8)<xhtml:span class="EnSpace"/>Preventing displacement and loss of community assets and culture following a disaster is a matter of statewide concern.

Moreover, California has an interest in ensuring community-based organizations have opportunities to acquire and hold property to increase access to affordable housing, homeownership opportunities, and community-serving small businesses.</xhtml:p><xhtml:p>(9)<xhtml:span class="EnSpace"/>The anti-community 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.</xhtml:p><xhtml:p>(10)<xhtml:span class="EnSpace"/>It is for these reasons that it is of statewide importance that those anti-community displacement mechanisms and protections are enacted.</xhtml:p><xhtml:p>(11)<xhtml:span class="EnSpace"/>As wildfire seasons have become more devastating and their threat looms over the entirety of the state, it is critical that all local jurisdictions, including charter cities, have these same protections apply to them.</xhtml:p><xhtml:p>(b)<xhtml:span class="EnSpace"/>Therefore, the Legislature finds and declares that the provision of adequate housing, in light of the severe shortage of housing at all income levels in the state, is a matter of statewide concern and is not a municipal affair as that term is used in

Section of

Article XI of the California Constitution. Therefore,

Section of this act adding

Article 1.6 (commencing with

Section 1102.50) to

Chapter of Title of Part of Division of the Civil Code and

Section of this act adding

Section 2923.56 to the Civil Code apply to all cities, including charter cities.</xhtml:p></caml:Content></caml:BillSection>"?>

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 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. <caml:Num>SEC. 5.</caml:Num><caml:Content><xhtml:p>No reimbursement is required by this act pursuant to

Section of

Article XIII<xhtml:span class="ThinSpace"/>B of the California Constitution for certain costs that may be incurred by a local agency or school district because, in that regard, this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of

Section of the Government Code, or changes the definition of a crime within the meaning of

Section of

Article XIII<xhtml:span class="ThinSpace"/>B of the California Constitution.</xhtml:p><xhtml:p>However, if the Commission on State Mandates determines that this act contains other 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 of Title of the Government Code.</xhtml:p></caml:Content></caml:BillSection>"?>

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 of Title of the Government Code.

Document details

CollectionCalifornia Bills
CitationSB 658
Date2025-04-10
Typebill
Languageen
SourceCA_BILL
Identifier20250SB65897AMD
Real property impacted by the 2025 Eaton or Palisades Fires: notification of owner’s intent to sell. | CaseLite