California enacts wildfire recovery laws and smoke damage standards

Governor Gavin Newsom has signed a package of bills in California designed to strengthen wildfire recovery and provide financial protections for homeowners. The legislation addresses issues stemming from the devastating Eaton and Palisades fires of January 2025.

Key measures include the establishment of first-in-the-nation standards for testing and remediating homes damaged by toxic wildfire smoke, specifically targeting contaminants like lead and asbestos. Assembly Bill 1642 directs the Department of Toxic Substances Control to create these scientific standards, while AB 1795 creates a legal presumption that smoke damage in fire zones originated from the wildfire, requiring insurers to cover testing and remediation costs.

Additionally, the Governor signed laws to expand mortgage relief. AB 1847 extends mortgage forbearance for up to 24 months for Los Angeles County homeowners facing hardship due to uninhabitable properties, and AB 1842 establishes a permanent statewide program providing up to 12 months of relief for victims of federally declared emergencies. To further assist recovery, a new $100 million state-funded Disaster Reconstruction Assistance Program has been launched to help bridge the gap between insurance payouts and actual rebuilding costs, specifically targeting low-to-moderate income households.