California has directed close to $369 million in federal funding, originally aimed at aiding victims of its most catastrophic wildfire year, to low-income housing developers. This was done without imposing any obligation for these developers to provide housing for wildfire survivors, according to an investigation by the California Post.
This substantial amount was granted while many Californians were still attempting to rebuild their lives following the devastating fires of 2018, which claimed 103 lives and caused extensive damage, impacting over 24,000 structures.
One of those affected is Mickey Schechter, a 62-year-old motivational speaker and comedian. He lost his home in Cornell and $60,000 worth of plumbing tools during the Woolsey Fire, which devastated his community in the Santa Monica Mountains.
Nearly eight years after the fire, he continues to reside in a small, 350-square-foot guesthouse that survived the blaze. He is unable to afford the approximate $2 million that it would now take to rebuild his home.
Schechter expressed his outrage upon learning about the allocation of federal funds. “That’s our money. We’re the ones that suffer for it. Give us our damn money. That’s bulls–t. I’m pissed,” he shared with California Post.
“Now I wanna know how can I possibly get money from that grant?” he asked, emphasizing, “That’s not your money. That’s our money.”
The federal government had set aside more than $1 billion for California to facilitate recovery from the 2018 wildfires, including the Camp Fire, which led to 85 deaths in Paradise, and the Woolsey Fire, which severely impacted areas north of Los Angeles.
The Woolsey Fire itself resulted in three fatalities, destroyed 1,643 structures, and incurred damages exceeding $6 billion. The U.S. Department of Housing and Urban Development (HUD) allocated $1,017,399,000 for recovery costs that were not covered by insurance or other aid.
California’s Department of Housing and Community Development (HCD) is responsible for managing these funds, distributing them for homeowner assistance and the financing of affordable rental housing in areas affected by the fires.
Of the $222.4 million designated for homeowners, only $38 million was used to rebuild 110 homes by the end of 2023, as state records indicate. The Camp Fire alone had obliterated 14,000 homes.
In contrast, developers received $368.7 million for low-income housing initiatives, with no stipulation to accommodate wildfire survivors.
Last year, one funding round resulted in $146.9 million being awarded to 14 developments across locations from Santa Cruz to Covina, amounting to a total project cost of $632 million, or about $754,000 per apartment.
HCD could not specify how many, if any, wildfire victims are currently residing in these developments.
Meanwhile, Schechter finds himself grappling with a significant financial burden. The county has billed him approximately $178,000 for debris removal, and he has spent an additional $300,000 on property maintenance.
His insurance payout totaled $450,000 for a home that was worth $750,000 and would now likely cost $2 million to rebuild.
State rebuilding support has been limited to low- and moderate-income homeowners, with insurance payouts impacting eligibility. Schechter feels he has not received the assistance he desperately needs.
The situation regarding the Woolsey Fire recovery funds sheds light on how developers secured significant financial backing while survivors like Schechter faced daunting rebuilding challenges.
In July 2024, California offered $26.7 million for Woolsey Fire recovery, but only one developer submitted a proposal. Rancho Cucamonga’s National CORE aimed to create an 81-unit apartment complex in Agoura Hills, scoring just enough points to qualify, despite being the lowest among the projects funded in that round.
The project’s location raised concerns about evacuation routes in the fire-prone Santa Monica Mountains, especially as recent fires heightened fears about crowding already congested escape routes.
“They are building apartments on the only way we can get out of here,” Schechter commented, recalling the chaos during the Woolsey Fire when vehicles were stuck for hours. “With all these extra people, people will die.”
Although the project’s total units were reduced to 54 after officials denied an increase in density, the funding of $26.1 million remained intact, which included $484,000 in disaster relief.
Agoura Hills officials noted they had no influence over the project or its funding decisions. “The City did not have any role in selecting the project, the site, or the funding amount,” stated Robby Nesovic, the Community Development Director.
In defense of the funding distribution, HCD maintained that the new apartments would replace the homes lost to the fires, with displaced renters typically opting for existing rental units, as explained by HCD spokeswoman Jennifer Hanson.
Yet developers are not obliged to accommodate fire survivors, who are categorized alongside Section 8 tenants as “least likely to apply” and are targeted for housing only through advertising. State regulations against residency preferences due to fair-housing laws were cited, and HCD has not indicated whether it considered prioritizing fire survivors during funding allocation.
In Butte County, where the Camp Fire devastated the town of Paradise, local officials expressed similar frustrations, stating they were excluded from funding decision processes.
The Eaglepointe Apartments project received $7.3 million in disaster assistance but reportedly only offered seven of its 42 units to Camp Fire survivors. Butte County is currently evaluating a public records request involving about 1,200 emails related to the project.
HUD has not commented on the California Post’s request regarding the matter.
