Los Angeles County launches Disaster Recovery Financing Authority

By The Malibu Times · Sat Jul 25 2026

Los Angeles County launches Disaster Recovery Financing Authority

Los Angeles County has taken another step in its long-term recovery from the devastating 2025 Palisades Fire, with the newly created Public Financing Authority (PFA) holding its inaugural meeting and approving a financial roadmap designed to help rebuild fire-ravaged communities in the unincorporated Santa Monica Mountains.

The Authority, which oversees the Unincorporated Santa Monica Mountains Wildfire Disaster Recovery Financing District, approved the district's Infrastructure Financing Plan (IFP), adopted its bylaws, conducted a required public hearing, and elected Los Angeles County Supervisor Lindsey P. Horvath as its inaugural chair.

County leaders describe the financing district as an innovative response to gaps in federal disaster assistance, creating a long-term funding source for critical public infrastructure while avoiding new taxes for local property owners.

Rather than increasing taxes, the district will capture a portion of future increases in property tax revenue generated as fire-damaged properties are rebuilt. Those additional revenues will remain within the district to fund recovery projects instead of flowing entirely into the county's general fund.

The financing district encompasses approximately 10,110 acres of the unincorporated Santa Monica Mountains, with more than 80 percent of the area falling within the burn scar of the January 2025 Palisades Fire.

According to the adopted Infrastructure Financing Plan, the district is expected to generate approximately $245 million in present-value funding over its lifetime, with a maximum financing capacity of up to $1.2 billion through a combination of pay-as-you-go funding and potential future bond issuances.

Investment priorities identified in the plan include:

County officials say projects will be selected based on community priorities, public input and readiness as rebuilding continues.

The financing district is one of several initiatives launched following the Palisades Fire, which burned from Jan. 7 through Jan. 31, 2025, destroying more than 6,800 structures, damaging nearly 1,000 others and claiming 12 lives across Pacific Palisades, Topanga, and the Santa Monica Mountains.

While debris removal has progressed, rebuilding has been slowed by insurance disputes, rising construction costs, permitting challenges and limited federal recovery assistance.

County officials have said those funding shortfalls prompted the search for new local financing tools to accelerate public infrastructure improvements that private rebuilding efforts alone cannot address.

The district was made possible through Senate Bill 782, signed into law in October 2025, which created a streamlined tax-increment financing mechanism specifically designed for disaster recovery.

The Public Financing Authority includes both elected officials and local community representatives, as required under the legislation.

The governing board consists of:

During the inaugural meeting, Horvath emphasized the importance of local investment in recovery.

"Today's meeting marks an important milestone in our recovery," Horvath said. "In the absence of federal recovery funding, Los Angeles County is creatively reinvesting local resources to rebuild the roads, infrastructure and public facilities our communities need. This Disaster Recovery Financing District lays an important foundation for the long-term recovery from the Palisades Fire. We won't stop until every family has the chance to come home, critical infrastructure investments are made and our communities are stronger and more resilient than before."

Supporters say the financing district offers several advantages, including dedicated local funding for wildfire recovery without increasing taxes, faster implementation than traditional infrastructure financing districts and stronger local oversight through community representation on the governing board.

County officials also note the district complements the Disaster Recovery Rebuild Authority established earlier this year, creating a coordinated approach to rebuilding homes, infrastructure and public facilities.

However, the financing model has also drawn criticism from some observers.

Because future growth in property tax revenue will remain within the district for decades, some analysts argue the approach could reduce funding available for countywide services that typically rely on general fund revenues.

Others caution that projected revenues depend heavily on successful rebuilding and rising property values — both of which remain uncertain as homeowners continue to face insurance challenges, permitting delays and elevated construction costs.

Questions have also been raised in similar disaster financing proposals about whether governance structures provide sufficient local representation and whether the greatest benefits ultimately accrue to property owners rather than renters or the broader community.

Additionally, while county officials stress that future borrowing would occur only when financially prudent, any bonds issued by the district would be repaid using future tax increment revenues, representing a long-term financial commitment.

As rebuilding continues across Malibu, Topanga and surrounding communities, county officials view the financing district as one piece of a broader recovery strategy intended to restore infrastructure while making neighborhoods more resilient to future wildfires.

Public Financing Authority meetings will remain open to the public, with agendas and supporting documents available through Los Angeles County's disaster recovery program. Future meetings will focus on prioritizing projects based on community input and the evolving needs of residents returning to the fire-impacted areas.

View on The Malibu Times