California Wildfire Aid Funds Allocated to Housing, Not Victims

California has directed almost $369 million in federal aid, intended for wildfire recovery, towards low-income housing developments. A California Post investigation found that these funds were allocated without any stipulation for developers to house survivors of the state's most devastating wildfires.

Thousands of Californians continue to grapple with the aftermath of the 2018 fires, which claimed 103 lives and destroyed over 24,000 structures. Among those affected is Mickey Schechter, 62, who lost his home and business equipment in the Woolsey Fire. Eight years later, he is still residing in a small guesthouse on his property, unable to afford the estimated $2 million to rebuild.

"That’s our money. We’re the ones that suffer for it. Give us our damn money. That’s bulls—t. I’m pissed," Schechter stated upon learning about the allocation of funds.

The federal government provided over $1 billion to California for recovery efforts following the 2018 wildfires, including the Camp Fire in Paradise and the Woolsey Fire. The funds from the U.S. Department of Housing and Urban Development (HUD) were meant to cover recovery costs not covered by insurance or other assistance. California's Department of Housing and Community Development (HCD) manages these funds, distributing them for both homeowner rebuilding and affordable rental housing projects in affected areas.

According to state records, by the end of 2023, only $38 million of the $222.4 million allocated for homeowner rebuilding had been spent, assisting 110 homes. This is in contrast to the Camp Fire alone, which destroyed 14,000 homes.

Meanwhile, developers received $368.7 million for low-income housing projects. State records indicate that a significant portion of this, $146.9 million in one round last year, was awarded to 14 developments with a total cost of $632 million, averaging approximately $754,000 per apartment. The HCD could not confirm how many, if any, wildfire survivors were housed in these developments.

Schechter described facing a financial crisis, noting debris cleanup costs of about $178,000 and $300,000 in property maintenance. His insurance payout was $450,000 for his home, which he estimates would cost $2 million to rebuild. State rebuilding aid was restricted to low and moderate-income homeowners, with insurance payouts affecting eligibility, and Schechter states he did not receive the necessary assistance.

In July 2024, a $26.7 million funding opportunity for Woolsey Fire recovery saw only one application from a developer, National CORE, for an 81-unit apartment complex in Agoura Hills. Despite scoring low on the application, the nonprofit secured $26.1 million of the available funds, including $484,000 in federal disaster aid, without any mandate to house Woolsey Fire survivors.

Concerns have also been raised about the location of these new housing projects in fire-prone areas. The Agoura Hills development is located near recent fire incidents, prompting worries that increased housing density could exacerbate evacuation challenges. Schechter expressed concern, stating, "With all these extra people, people will die."

The Agoura Hills project was eventually reduced to 54 units, but its funding remained unchanged. City officials stated they had no involvement in the project's selection, site, or funding amount. HCD defended the spending, asserting that new apartments replace housing lost in fires, though displaced renters are not prioritized. State regulations prohibit residency-based preferences due to fair-housing laws.

In Paradise, the site of the Camp Fire, local officials also reported having no role in funding decisions for recovery projects. Eaglepointe Apartments in Paradise received $7.3 million in disaster aid, with only seven of its 42 units reportedly going to Camp Fire survivors, according to local news. Butte County is reviewing records related to these projects.

HUD, which approved California's recovery plans, did not respond to requests for comment.