Bill would let CRA‑funded nonprofits buy wildfire‑damaged homes to preserve community ownership

Assemblymember Haribedian introduced AB 797, the Community Stabilization Act, to the Senate Business, Professions and Economic Development Committee on June 30, saying the bill would create a new pathway for CRA‑qualified investors to put private capital into mission‑driven nonprofits that can buy wildfire‑impacted homes at a floor equal to pre‑disaster fair market value.

Haribedian said the bill is aimed at Altadena and the Palisades and argued homeowners who lost their houses should have a dignified option other than selling to speculative buyers offering well below market value. “This bill creates a pathway for qualified nonprofits to purchase homes at fair market value using funds that banks are already required to invest under the Federal Community Reinvestment Act,” he said.

The bill would have the state’s…