(SACRAMENTO, CA) – Homeowners in wildfire-affected communities may soon get a measure of protection thanks to AB 797, the Community Stabilization Act, authored by Assemblymember John Harabedian (D–Pasadena). The bill passed the Legislature today and is headed to Governor Gavin Newsom for signature.
AB 797 is designed to prevent predatory investors from taking advantage of homeowners who lost their homes or saw their property damaged during the January 2025 Eaton and Palisades Fires. The legislation allows qualified nonprofits to purchase and manage residential properties in disaster-impacted areas using Community Reinvestment Act funds, keeping homes affordable and helping families remain in their neighborhoods.
“After the fires, too many families were faced with offers they didn’t understand, from investors looking to profit off someone else’s loss,” said Assemblymember John Harabedian (D–Pasadena). “AB 797 stands up for homeowners. It gives families the chance to stay in their homes, rebuild their lives, and push back against predatory practices. This goes beyond real estate—it’s about fairness, keeping communities intact, and giving families the security and certainty they deserve after disaster.”
AB 797 also establishes a Community Stabilization Fund, ensures properties are purchased at fair market value, and requires oversight to make sure these programs truly help the people who need them most. With an urgency clause, the bill would take effect immediately once signed.
AB 797 will receive the Governor’s decision to sign or veto the bill by October 12th at the latest.
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Assemblymember John Harabedian represents the 41st District composed of the cities of La Cañada Flintridge, Pasadena, Altadena, Sierra Madre, Monrovia, Bradbury, San Dimas, La Verne, Claremont, Upland, Rancho Cucamonga, Oak Hills, Piñon Hills and Phelan.
