The Brief

Duplex projects will be allowed to move forward once again in two Southern California cities affected by last year’s fires. The change of course is the result of a court showdown between advocates for denser housing and local elected officials who wanted to ban more units from cropping up in burn zones.

The cities of Malibu and Pasadena have agreed to settle with the plaintiffs who brought forward a lawsuit that challenges local jurisdictions’ suspension of Senate Bill 9 in high fire risk zones, according to documents obtained by LAist.

Sonja Trauss, executive director of YIMBY Law, a plaintiff in the lawsuit, said the result will help residents get more out of their properties.

“I want them to know that they can build,” Trauss said.

How we got here

SB 9 allows single-family homeowners across the state to build duplexes and split their lots. It became state law in 2021. SB 9 applicants can use the law to create up to four units where a single-family home once stood, in some cases. The law takes away the ability of local governments to block these projects.

However, after the 2025 fires, some homeowners affected by the fires erupted with anger over the prospect of their burned-down neighborhoods being rebuilt with denser housing. They argued more homes — and the additional residents that come with them — would clog evacuations and hurt neighborhood character.

In July 2025, Gov. Gavin Newsom signed an order giving local leaders the power to block the law in very high fire hazard areas within the Palisades and Eaton fire burn zones.

Elected officials in L.A. city, the county of L.A., Pasadena and Malibu followed suit and adopted policies to stop processing SB 9 applications in those areas.

Advocates for increased housing development, including YIMBY Law, sued the governments, alleging they didn’t have the authority to suspend laws passed by the legislature.

Trauss told LAist housing advocates believe the order is being misused for political purposes.

“ It chips away at the policy,” she said. “Especially in the Palisades, everybody could watch the political back-and-forth that caused that to happen.”

The backlash on social media to SB 9 projects in the Palisades was led by former reality TV star Spencer Pratt, who lost his home in the fire and later mounted an unsuccessful campaign for L.A. mayor.

What the settlement means

According to the settlement documents, Malibu and Pasadena have agreed to repeal the local ordinances that blocked SB 9 projects by the end of September. The settlements still require City Council action to undo those bans.

The cities are also supposed to process any pending SB 9 applications that were submitted, paused or rejected.

Another plaintiff in the lawsuit — Andrew Slocum, CEO of Green Development Company — said he thinks Newsom never should have signed the executive order in the first place.

Slocum said he hopes to see recovering homeowners have more options when rebuilding their properties. Last year, he told LAist he was working with homeowners on SB 9 projects.

The settlement “allows for the people to hopefully be able to come back and resubmit that application,” Slocum said, “because most people who are doing SB 9 are the homeowners themselves.”

The Pasadena City Council took the first step toward repeal on July 20, according to city spokesperson Lisa Derderian. She said they’ll start processing SB 9 applications once the vote is finalized.

“The City reached a conditional settlement with YIMBY in recognition of the uncertainty inherent in litigation and the significant passage of time since the Eaton Fire in January 2025,” she said in a statement.

LAist contacted officials in the city of Malibu for comment but has not heard back.

What’s next

The county and city of L.A. are still fighting the lawsuit. They control land use in Altadena and the Pacific Palisades, home to the lion’s share of properties affected by the Eaton and Palisades fires.

State officials also continue to defend the restrictions. Newsom’s office stands behind the executive order and plans to defend it in court, according to a state official.

Trauss said the parties met for  a trial setting conference a few days ago.

“ I want the folks in the county and in the city of L.A. who could build … to have hope,” she said.

The lawsuit is playing out while state legislators are moving forward with a new bill, SB 1090, which would expand the ban on SB 9 to all of Altadena.

The Los Angeles region’s troubled homeless services agency announced this month that it will no longer manage the region’s federal homelessness dollars, amid scrutiny from the Trump administration.

Now, a federal court must help determine who will manage roughly $240 million in annual federal funding after the L.A. Homeless Services Authority gives up that long-held job in the coming months.

At a hearing Wednesday, U.S. District Judge David O. Carter said most of his attention is on who will administer the round of federal money that will be awarded in December and distributed next year.

The only potential near-term successor discussed in court was L.A. County, which created a new homelessness department and applied for the role. County officials have promised much stronger accountability and transparency.

But the city of L.A., where most of the region’s unhoused people live, is also interested in taking over some of LAHSA’s duties. The city could eventually try to break off and form its own regional body to receive federal funds, Carter said.

“But that’s for the future,” Carter said. “For now, we have to focus on providing for people experiencing homelessness — and also fraud and corruption.”

‘The watchdog wasn’t watching’

LAHSA has been used as a punching bag, Carter said, but he blamed recent cases of alleged theft of taxpayer funds on a broader “failure of government” by both HUD and LAHSA.

“The watchdog wasn’t watching, and the money got distributed without accountability,” Carter said.

In the meantime, Carter said, LAHSA isn’t going anywhere. He said any transition must unfold gradually to avoid displacing people from housing and services.

“We’re going to have to live with LAHSA for at least some period of time,” Carter said. “The question might be how much?”

How soon could the county take over? 

Carter said he agreed with LAHSA’s decision to entrust another administrator to manage the money.

Attorneys for the U.S. Department of Housing and Urban Development (HUD) told Carter the next round of annual funding would be distributed over 2027.

Carter acknowledged HUD may be uneasy sending that money to LAHSA, the very agency it is investigating for fraud. Carter said he was struggling with the issue himself.

Carter signaled that he wants to see federal funding transferred to the county by January if it is chosen as LAHSA’s successor.

‘The devil is in the details’

At the hearing, federal prosecutor Bill Essayli said the Trump administration would rather reach an agreement than litigate. He said “the devil is in the details” when it comes to any transition away from LAHSA.

“We want assurances of anti-fraud measures,” Essayli said. “That way the money is never stolen again.”

Carter said he hoped a transition plan would keep the parties from spending millions of dollars on attorneys’ fees that could otherwise go toward housing and services.

How we got here

In June, the Trump administration suspended LAHSA from applying for federal funding, alleging years of financial mismanagement. LAHSA then sued, and Carter blocked the suspension in August. Carter’s decision has so far held up on appeal.

LAHSA’s governing commission voted this month to give up its federal roles next year, including managing federal homelessness dollars and conducting the region’s annual homeless count. Local officials have been taking applications from organizations that want to take over those duties in 2027.

Meanwhile, investigations into fraud have been widening. Prosecutors have so far charged six people connected to L.A. homeless service providers. LAHSA has said none of its staff are implicated.

When asked if LAHSA’s current or past leadership has been culpable, Essayli recently said, "It is not against federal law to be incompetent, unfortunately.”

Major shifts happening

For decades, county, city and federal dollars have been managed mainly by LAHSA. But those funding streams are now being redirected in the wake of repeated findings of mismanagement.

L.A. County pulled roughly $300 million of its annual homelessness funding in July and gave it to its new in-house Department of Homeless Services and Housing.

That leaves the city as LAHSA’s last major funder. The City Council has explored leaving, but hasn't reached a decision yet. City staff has estimated that building a city homeless services department would take up to two years.

On the campaign trail, Councilmember Nithya Raman has pledged to exit LAHSA within her first year if elected mayor, while incumbent Mayor Karen Bass has said it would take "a couple of years."

What’s next

Carter did not rule Wednesday on federal funding. He scheduled a hearing for Oct. 27 and described it as “our decision-making day on so many matters.”

Before then, local officials are expected to select a replacement to take over LAHSA’s federal administrative roles.

Los Angeles city officials are asking LA28 to hand over a list of its contracts, saying the Olympics organizing committee could be in violation of its agreement with the city.

LA28’s annual financial report released last week included a broad review of the organization’s deals with contractors hired to help put on the event, but no names or detailed breakdowns of spending.

The Games Agreement between the city and LA28 requires the committee to submit the name, type, amount, term and purpose of each contract it has entered into worth more than $1 million.

No such list was provided in LA28’s report.

“It's inadequate, what we've been provided, and that's not acceptable,” City Councilmember Katy Yaroslavsky said at a committee meeting on the 2028 Olympics Wednesday afternoon.

Chief Legislative Analyst Sharon Tso said she has requested a full list from LA28 and is waiting to hear back.

Jacie Prieto Lopez, a spokesperson for LA28, said in an emailed statement to LAist that LA28 had received the request.

“We are working through those requests now and remain committed to meeting our obligations," she said.

Tso told the council committee she had seen a more detailed list of LA28’s contracts, but only when it was “flashed on the screen very quickly” at a meeting with her, Olympics organizers, the city administrative officer and the mayor’s office.

“So we don't have a list,” Tso said. “We don't have the names of the folks. We don't have the dollar amounts.”

Tso told the council that Olympics organizers were wary about making contracts public, due to concerns that public disclosure could harm negotiations over competitive event sponsor deals.

City Councilmember Hugo Soto-Martinez said that did not satisfy LA28’s obligations to the city.

“They can just be like, ‘Flash it, we're done, and we did our requirement,’” Soto-Martinez said.

The federal financial aid process opened this past week for students applying to college for next year. But for many California students, a source of state financial help remains untapped.

In 2022, the state launched the California Kids Investment and Development Savings Program, also known as CalKIDS, and began creating investment accounts for more than 6 million children in the state to use for higher education.

Babies born on or after July 1, 2022, can get up to $175 in their accounts, while low-income public school students can claim up to $1500.

In Los Angeles County, about 1.1 million public school students are eligible for the accounts, but fewer than 20% of kids have claimed them, said Cassandra DiBenedetto, executive director of California’s ScholarShare Investment Board. The claim rate is even less for babies — about 11%.

“The money itself, it has a long trajectory. So you have these newborns, and there's not a sense of urgency among some parents; they know the account's there, it’s been created. Parents are busy,” DiBenedetto said.

There is no deadline to claim the money, which is already growing in the investment accounts. (You do have to use the money by age 26). But DiBenedetto says kids are more likely to see themselves as college-bound if they have it — and will be able to watch the account grow over time.

“ You talk to second-and third graders who are like, ‘I'm gonna go to UC Santa Barbara,’ ‘I'm gonna go to Cal Berkeley,’” she said.

The state is working with the Los Angeles Unified School District and other school districts to get students signed up.

The city’s top financial adviser is recommending that the Los Angeles City Council deny a police department request to procure 300 additional vehicles for the 2028 Olympics and Paralympics.

The report, submitted to the council Monday by City Administrative Officer Matt Szabo, found that the L.A. Police Department would have enough vehicles to temporarily expand its fleet during the Games without the additional cars.

LAPD officials had previously requested around $31 million, arguing the additional officers deployed for the Games will need additional vehicles for their police work.

But Szabo disagreed in his report, finding instead that the department would soon have a large enough fleet.

“Given the current available vehicles and new vehicle procurements which have already been funded, it is not recommended to authorize the procurement of any additional police vehicles for the 2028 Games deployment,” Szabo wrote.

An LAPD spokesperson declined to comment on the city administrative officer’s report. Previously, the department has emphasized that its request seeks only to temporarily expand its fleet, with plans to retire old vehicles after the Games.

The police department has offered different estimates of how many additional vehicles it will need to patrol the Olympics. Two months after the LAPD asked for an additional 300 vehicles, the department released another report estimating an even higher need: 576 police vehicles.

Either way, Szabo’s report found that more than 1,100 police vehicles not yet in use by the department were funded in the past three budget cycles. He said those should be sufficient for the Olympics.