Los Angeles Area Fires Dominate Legislative Activity

As Los Angeles continues to burn, the thousands of families who have lost everything to the flames covering Southern California in smoke and ash are at the center of everyone’s thoughts and prayers in Sacramento. The devastation has been beyond description, and people are struggling to come to grips with the overwhelming impact. 

Over the coming year, a lot of time will be spent casting blame. Why did so many fire hydrants run out of water?  Why was a reservoir empty that could have been used to provide water to stop the spread of the fire early? People will want answers and cast blame on someone, but the reality is that the last week has been a disaster with too many causes to count and caused by too many people to blame.

Since the fire started last week, dozens of bills have been introduced, and a special session previously called to give the Attorney General $50 million to file lawsuits against President Trump when he is inaugurated on Monday has been expanded to provide over $2 billion to help fire victims. Over the coming weeks, we will report on significant legislative proposals introduced that affect manufactured housing communities across the state.

Times of disaster are dangerous in the Legislature as significant policy changes often find themselves buried in measures introduced in the name of “protecting and helping victims.” Over the next several weeks, WMA will be closely monitoring introduced bills that may contain provisions affecting our industry.

Please check your email frequently as we will keep our members up to date on new bills.

To view a list of bills currently being monitored by WMA, click here.

Resources Available for People Impacted by Los Angeles Fires

The State of California has created a comprehensive website that provides vital information for people who were directly or indirectly impacted by the Los Angeles area fires. The website contains information for individuals and businesses who need help with insurance claims, applying for disaster relief from the Federal Emergency Management Agency (FEMA), rental assistance, and other types of financial aid.

To visit this website which can be helpful for management and residents, click here.

Governor Releases 2025-26 Proposed Budget

Last Friday just as the fires in Los Angeles were erupting and the size of the disaster was beginning to be better understood, the Governor released his proposed 2025-26 state budget.  While the fires will significantly impact the state’s spending plan, the Governor presented a budget that was basically balanced and does not foresee any direct tax increases.

The $322.3 billion fiscal plan calls for $228.9 to be spent spent on general fund items and takes nearly $17 billion from the state’s Rainy Day Fund and the special fund created to cover shortfalls resulting from economic uncertainties.

To read a summary of the Governor’s proposed budget, click here.

The Legislative Analyst’s Office (LAO) points out that this year’s spending plan is the second highest in California’s history. The Governor’s assumption is that the 2024 capital gains tax receipt will continue for several more years, but if an economic downturn occurs, the state will be forced to make significant cuts to existing state programs. 

To read the LAO analysis of the Governor’s proposed budget, click here.

The overriding issue that will affect the 2025-26 budget is the economic impact of the fires, which many analysts believe could be approximately $135 billion in lost wages, property damage, and cleanup costs. While much of this may be covered by FEMA funds granted by Congress, the impact on the state’s general fund will be significant.

The Senate and Assembly Budget Committees will be meeting over the next several months, and a Budget must be passed by June 15. A revised proposed budget will be provided in mid-May by the Governor once 2024 tax returns are processed.

Park Tours Being Planned

Thank you to the many of you who have volunteered to host or attend park tours with lawmakers over the next several months.  Your participation in these opportunities is essential to our efforts to educate legislators about our industry. 

We are currently working to secure as many as 20 park tours around the state, and we will let interested members know when a tour is scheduled in your area.

Manager Training Update

WMA was notified this week by HCD that the manager training regulations to implement SB 869 will be released by the end of the first quarter of 2025. Once WMA is notified, we will notify our members. 

To learn more about the status of the manager training program, click here.

Update on New Laws Webinar – Final Sessions Fast Approaching!

Webinars on Thursday, January 23, and Thursday, January 30, will be held from 10 to 11:30 a.m, highlighting newly signed legislation that directly affects the industry.

Please consider attending one of these informative presentations.

Detailed information and registration materials can be found here. 

General Remarks

It is an honor to serve WMA and our dedicated members who work hard to provide housing opportunities for hundreds of thousands of Californians. Please feel free to suggest ideas for new legislation that can be introduced in the 2025-26 Legislative session by emailing me at chris@wma.org or calling me in the office on my direct line at 916.288.4026.