Wealth will dictate LA fire recovery unless California learns from mistakes of past disasters

The wildfires sweeping through Los Angeles County have left a devastating mark, consuming more than 40,000 acres, taking dozens of lives and reducing entire neighborhoods to ash. The flames are a grim reminder of climate change fueling more frequent and destructive disasters.

This is deeply personal. My family lost their home in Altadena, a historically Black, middle-class community known for its legacy of generational homeownership. Countless families are now grappling with the reality of starting over, often without the insurance or resources needed to rebuild.

This tragedy reveals a harsh truth: Recovery isn’t the same for everyone. Wealthier communities will turn to private resources, while working-class neighborhoods in Altadena will face immense barriers to rebuilding and recovery.

One of the heartbreaking aspects of this recovery is the influx of developers making low-ball offers to Altadena residents to buy their land. These developers present themselves as the only option, exploiting families who feel they have no choice.

For those without home insurance — or with policies that won’t cover their losses — these offers may seem like the only way to recoup anything. But in reality, these offers erode generational wealth, force families out of their close-knit communities and deepen existing economic inequalities.

We need to protect these families from exploitation and ensure that recovery efforts prioritize the Black and brown residents who have called Altadena home for decades. Gov. Gavin Newsom’s executive order this week is a positive step in that direction.

The challenges facing Altadena extend beyond residential homes. Local small businesses — the mom-and-pop shops and gathering places that form the backbone of neighborhoods — have been decimated. Across Greater Los Angeles, businesses that have operated for decades were destroyed in a matter of hours, and their recovery will not be quick or easy.

Small businesses in historically underserved communities often struggle to access grants, loans and financial relief programs. In Pasadena, for example, a recent survey of small businesses revealed that many owners were unaware of available climate-focused funding opportunities. By the time they hear about programs, the funds are gone or the deadlines have passed.

This reflects a larger, systemic issue. Recovery programs are often designed without fully considering the unique needs of small businesses in marginalized communities. These businesses need accessible pathways to funding and support — not bureaucratic hurdles that leave them behind.

As we’ve seen with disasters like Hurricane Katrina, recovery is often unequal. Investigations into the federally funded Road Home program, designed to help Louisiana rebuild after hurricanes Katrina and Rita, revealed significant disparities in how aid was distributed.

Grants were calculated based on pre-storm property values instead of actual rebuilding costs, a method that disadvantaged low-income neighborhoods. Black homeowners were especially affected, as racial disparities in housing markets meant their properties were often undervalued.

The inequities were widespread. Federal rebuilding contracts largely bypassed smaller, minority-owned businesses. Of the $1.6 billion allocated for recovery efforts, only 1.5% went to Black-owned firms, excluding many businesses from opportunities to contribute to or benefit from the rebuilding process.

Read More: LA fires could drastically drive up insurance premiums — and test California’s new market rules

California cannot repeat these mistakes. Rebuilding contracts must prioritize diverse, local firms that reflect the communities they serve. This approach not only ensures that recovery dollar stay within the community but also helps build economic resilience by empowering local businesses to play a key role in rebuilding efforts.

Policymakers and local leaders must act swiftly to ensure that Altadena receives equitable access to recovery resources. This includes fair insurance payouts, targeted grant programs, protections against predatory developers, and a commitment to emphasizing rebuilding contracts with diverse, local businesses.

It also requires longer-term investment in climate resilience so communities like Altadena can better withstand future disasters.

The wildfires in Los Angeles are a wake-up call. If we want to protect the communities we love — places like Altadena — we need to create recovery systems that work for everyone, not just those with the means to rebuild.

Let’s give communities the opportunity to rebuild, thrive and pass down their homes, businesses, and legacies to future generations.

Altadena deserves that future.