Conspiracy theories helped nix proposed housing authority to rebuild after L.A. County wildfires

Los Angeles Times

17-07-2025

This week, reality TV show star Spencer Pratt posted multiple videos on social media savaging a proposed state bill on wildfire rebuilding. In one, Pratt told his 2 million TikTok followers that he consulted an artificial intelligence engine about Senate Bill 549. He said it told him the legislation would allow L.A. County to buy burned-out lots in Pacific Palisades and convert them to low-income housing, strip away local zoning decisions and push dense reconstruction. He urged people to oppose it.
'I don't even think this is political,' Pratt said. 'This is a common sense post.'
None of what Pratt said is in the bill. But over the last week, such misinformation-fueled furor has overwhelmed the conversation in Los Angeles, at the state Capitol and on social media about wildfire recovery. Posts have preyed on fears of neighborhood change, mistrust of government authorities and prejudice against low-income housing to assert, among other things, that the wildfires were set intentionally to raze the Palisades and replace the community with affordable housing.
The chatter has unmoored debate over a major rebuilding proposal from L.A. County leaders. Under the plan, a new local authority would be able to buy burned lots, rebuild homes and offer them back at discounted rates to the original owners. The idea is to give property owners struggling to rebuild another option to stay in their communities. There are no changes to any rules that require zoning amendments or approvals for individual housing developments.
State Sen. Benjamin Allen (D-Santa Monica), the author of SB 549, which creates the local authority, said he understands legitimate policy disagreements over the new powers granted in the bill.
But those discussions have been overshadowed, he said.
'It's become this total meme among the right-wing blogosphere and, unfortunately, picked up by some lazy-ass journalists that don't bother to read the bill that say this bill seeks to turn the entire Palisades into low-income housing,' Allen said.
Some of his own friends who lost homes in the Palisades, Allen said, have been texting him asking why he's trying to force low-income housing into the neighborhood.
'People are saying I want to put a train line in there,' Allen said. 'It's insane.'
The frenzy, in part, is due to an issue of timing. Last month, a 20-member expert commission impaneled by L.A. County proposed the local authority as a key recommendation for rebuilding after January's Palisades and Eaton fires destroyed 18,000 homes and other properties.
Commission leaders then approached Allen about writing a bill that would allow for its implementation. Allen wanted to do it, but deadlines for introducing new legislation had long passed.
Instead, Allen took SB 549, which had nothing to do with wildfire rebuilding but was still alive in the Legislature, and added the rebuilding authority language to it. This is a common legislative procedure used when putting forward ideas late in the year.
Allen decided as well to keep the original language in the bill, which called for significant spending on low-income housing in an unrelated financing program. Multiple news articles conflated the two portions of the bill, which added to the alarm.
The version of SB 549 with the wildfire rebuilding authority in it had its first hearing in a legislative committee on Wednesday. Allen spent much of the hearing acknowledging the confusion around it.
Misinformation over the rebuilding authority was fueled by a separate announcement California Gov. Gavin Newsom made this month.
State housing officials carved out $101 million from long-planned funding allocations for low-income housing and dedicated it to building new developments in Los Angeles.
The money will be used to subsidize low-income apartment buildings throughout the county with priority given to projects proposed in and around burn zones, that are willing to reserve a portion to fire survivors and are close to breaking ground.
The fires exacerbated the region's housing crisis. Higher rents persist in nearby neighborhoods and low-income residents continue to struggle. Newsom cast the announcement as assisting them in regaining their footing.
'Thousands of families — from Pacific Palisades to Altadena to Malibu — are still displaced and we owe it to them to help,' Newsom said when unveiling the spending.
Like the proposed rebuilding authority, the funding does not change any zoning or other land-use rules. Any developer who receives the dollars would need separate governmental approval to begin construction.
Nevertheless, social media posters took the new money and the proposed new authority and saw a conspiracy.
'Burn it. Buy it. Rebuild it how they want,' said a July 15 post from X user @HustleBitch_, who has nearly 124,000 followers. 'Still think this wasn't planned?
Newsom called the situation another example of 'opportunists exploit[ing] this tragedy to stoke fear — and pit communities against each other.'
'Let's be clear: The state is not taking away anyone's property, instituting some sort of mass rezoning or destroying the quality and character of destroyed neighborhoods. Period,' Newsom said in a statement to The Times. 'Anyone claiming otherwise is either misinformed or deliberately lying. That's not just wrong — it's disgraceful.'
Not all of the debate about the rebuilding authority is based on false information.
Allen and local leaders acknowledged the need for more consensus over its role, especially given the sensitivities around recovery. Still unresolved were the authority's governing structure, and whether it would encompass the Palisades or be limited to Altadena and other unincorporated areas.
Pratt lost his Palisades home in the fire and has sued the city, alleging it failed to maintain an adequate water supply and other infrastructure. In social media videos this week, Pratt said he and other residents didn't trust the county with increased power over rebuilding when he believed leaders failed to protect the neighborhood in the first place.
'We're a fire-stricken community, not a policy sandbox,' Pratt said. 'We do not support the county becoming a dominant landowner in the Palisades.'
Representatives for Pratt could not be reached for comment.
By the end of Wednesday, Allen conceded defeat on SB 549. There were many legitimate hurdles to the bill passing before the Legislature adjourns in mid-September, he said. Notably, a representative for Los Angeles Mayor Karen Bass told the legislative committee that she was opposed to the bill because the city had yet to be convinced of its efficacy.
But the misinformation surrounding the bill made it even harder to envision its success, he said. Allen decided to hold the bill and have it reconsidered when the Legislature convenes again in January.
'If we're going to do this, I want the time to do it right,' he said.