Thursday, October 15, 2026

Altadena Survivors Ask Pasadena Lawmaker to Revisit Vetoed Recovery Financing Plan

State and federal proposals would seek private capital after a vetoed measure; separate state aid program already exists

Altadena fire survivors are asking Pasadena Assemblymember John Harabedian to revisit a vetoed recovery-financing plan and consider a proposed state investment fund aimed at rebuilding fire-damaged communities.

The requests, detailed in letters dated Oct. 13, would supplement government disaster grants with financing intended to reach displaced homeowners, small businesses and community institutions.

Harabedian plans to join the survivors at an Oct. 21 news conference in Altadena, according to an announcement by the community group Beautiful Altadena.

Six residents signed a letter to Harabedian and state Sen. Sasha Renée Pérez seeking an updated version of Assembly Bill 797 and a California Disaster Investment Fund. The letter proposes state oversight and participation by qualified financial organizations with community representation. None of the proposed funding mechanisms has been enacted through these letters.

The investment fund proposal would let participating investors direct up to 70% of their capital-gains tax liability into approved investments, with the tax deferred for seven years. Draft legislative language would cap investments at $5 billion per tax year, limit real estate holdings to 40% of the fund’s investable assets and direct part of that real estate allocation toward small businesses or low- to moderate-income housing. Those figures are proposed parameters, not money awarded to Altadena.

The residents also wrote to U.S. Sens. Alex Padilla and Adam Schiff and Rep. Judy Chu proposing federal Disaster Opportunity Zones. Under their draft, eligible areas covered by major disaster declarations could receive temporary investment incentives for 36 months if the relevant government elected to participate. Existing investments made during that period would retain specified benefits afterward.

Harabedian’s original AB 797, known as the Community Stabilization Act, passed both chambers of the Legislature in 2025 but was vetoed by Gov. Gavin Newsom. The bill would have directed the California Infrastructure and Economic Development Bank to administer securities designed to help stabilize residential property values in disaster areas. Newsom said the program would impose ongoing state costs in the tens of millions of dollars that had not been included in the budget.

Quoted in the Beautiful Altadena announcement, Harabedian said: “Families are still facing a gap between what it costs to rebuild and the resources available to them.” He also said the new proposals deserved serious consideration alongside continued efforts to secure federal recovery funding.

The new proposals come after California launched a separate $100 million Disaster Rebuilding Assistance Program in September. The state said that program offers interest-rate reductions and loan-loss guarantees to help eligible homeowners finance rebuilding. It is distinct from the investment fund survivors are now seeking.

Shawna Dawson Beer, who founded Beautiful Altadena and signed the letters, said, “Survivors need a meaningful role in identifying the problems, developing the solutions and deciding how recovery resources reach the people who need them.”

The signers — Stephen Sachs, Dawson Beer, Milissa Marona, Anton Anderson, Shimica Gaskins and Sylvie Andrews — said the proposals should add to, not replace, federal disaster aid. Their letters seek legislative action rather than announcing an enacted program or a new appropriation. The group plans to outline the financing proposals at the Altadena gathering with Harabedian.