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

The notification and right-of-first-refusal process is now centralized through the County of Los Angeles rather than being managed separately by each city or local authority. Owners may send notice to the County of Los Angeles or a qualified entity, and the county develops the process for organizations to register interest.

A new Section 1102.50 was added containing legislative findings and declarations describing the impact of the fires (over 47,900 acres burned, more than 16,250 structures destroyed or damaged), concerns about displacement, real estate investment firms buying distressed properties, and the disproportionate impact on Black families in Altadena.

A new definition of 'Real property' was added (subdivision (c) of Section 1102.52) that broadly includes single-family residential, multifamily residential, mobilehome parks, manufactured housing communities, mixed-use residential and commercial, and all commercial property - expanding beyond the prior focus on 'residential real property' and 'fire-damaged commercial real property.'

The definition of 'qualified entity' was changed from an organization that provided notice to the 'local authority' to one that provided notice specifically to the 'County of Los Angeles,' centralizing the registration process at the county level.

The fiscal committee requirement changed from 'no' to 'yes,' and the state-mandated local program designation changed from 'no' to 'yes,' acknowledging that the bill now imposes costs on local agencies that trigger reimbursement analysis under the California Constitution.

Additional state mandate reimbursement language was added, including a provision that with regard to certain mandates no reimbursement is required for a specified reason, and that for other mandates the Commission on State Mandates will determine if reimbursement is owed.

The bill's section numbering was reorganized: the old Section 1102.50 (definitions) became Section 1102.52, the old Section 1102.52 (owner obligations) became Section 1102.54, and the new findings section took the number 1102.50.

Added an entirely new Article 1.6 (Post Disaster Community Stabilization Act) to the Civil Code and a new Section 2923.56, replacing the original bill which contained only a single sentence expressing legislative intent to enact future legislation on real property in disaster areas.

The bill includes findings that the subject matter is a matter of statewide concern rather than a municipal affair, making it applicable to all cities including charter cities. It also includes a special statute finding under Section 16 of Article IV of the California Constitution.

Added exemptions from the right of first offer/refusal for transfers between spouses, domestic partners, parents and children, siblings, grandparents and grandchildren; estate transfers to family members where proceeds go to charity; bare legal title transfers into revocable trusts; transfers to named beneficiaries of revocable trusts by reason of death; court orders or settlements; and eminent domain.

Defined 'qualified entity' as local public entities, 501(c)(3) nonprofits with California-based operations and affordable housing or small business development as a primary activity, community land trusts, and certain limited partnerships and LLCs controlled by qualifying nonprofits. These organizations must register with the local authority to participate.

Property owners in the 2025 Los Angeles Fire Impact Area must notify all qualified entities before offering, soliciting, accepting, or contracting to sell residential real property or fire-damaged commercial real property. Qualified entities have 10 days to express interest, then 60 days (5+ units) or 40 days (4 or fewer units) to submit an offer after receiving a disclosure package.

If a property owner rejects a qualified entity's offer and sells to a non-qualified party, the qualified entity has 10 days to invoke a right of first refusal to match the price and terms. If the qualified entity was never notified, it has 80 days from acceptance to invoke the right.

Qualified entities that purchase tenant-occupied property must retain all existing tenancies on the same terms, offer to restore tenancies terminated due to the fires, and make vacant units affordable to persons and families of low or moderate income. These affordability requirements are recorded as covenants running with the land.

New Section 2923.56 requires mortgagees, trustees, beneficiaries, or authorized agents to provide the mortgagor or trustor with a list of qualified entities and post a copy of the notice of default in a conspicuous place on the property within three business days of recording a notice of default against multifamily residential or fire-damaged commercial property in the impact area.

Owners must record a certification of compliance under penalty of perjury at the time of sale. Failure to file is an infraction; willful or knowing failure carries a fine of $1,000 per unit per day. A private right of action is granted to residents, former residents, applicants denied occupancy, the Attorney General, local authorities, and qualified entities, with remedies including actual damages (presumed equal to the difference between sale price and what the qualified entity could have paid) and additional damages of 10%, 20%, or 30% of sale price for willful violations.

All provisions are effective for six years following the expiration of a declared disaster or state of emergency resulting from the Eaton or Palisades Fires. Local authorities must jointly convene a working group by July 1, 2026 to develop community rebuilding and disposition guidelines for fire-damaged commercial property and owner-occupied single-family homes acquired by qualified entities.

Added definitions for '2025 Los Angeles Fire Impact Area' (ZIP Codes within or adjacent to the fire perimeter as determined by CalFire in consultation with OES), 'fire-damaged commercial real property,' 'residential real property' (covering single-family, multifamily, mobilehome parks, manufactured housing communities, and mixed-use properties meeting specific criteria), and exclusions for government-owned property, hospitals, dormitories, resident-controlled corporations, and certain nonprofit transfers.