Clarity in a Fluid Situation
Sometimes it is hard to be direct when things continue to evolve
The only clarity in politics is change. As much as we want a business to fix the problem, what we are experiencing in Altadena and Palisades is as much political as it is business.
As our situation evolves, there will be a constant change on the ground until the situation “locks in.” It is frustrating. It is why narratives have to be created “after the fact,” when “chapters” of the work are completed.
I understand the frustration for those wanting clarity and simplicity. I want clarity and simplicity. I am trying to cut through the murk to get there. It takes time. It means we have to understand the “why” to get to the “answer.”
The reason there is an adjective “wonky” in our language is because it is not clear, it is not straightforward, it is insecure. I appreciate all those who are not “wonks” wanting to learn about what we need to do. I wish I could “cut through the bullsh*t” and get to the point. I think everyone would like to.
For those wanting clarity, Altadena is here:
We have two bills, AB 797 and SB 782 coming through the houses in Sacramento. One gives us control of our future (797) and one is creating a new layer of bureaucracy (782) and does not allow for us to vote on anything.
No current plan is available as to what Altadena’s plan will be.
We have ideas on funding, which will be around the Community Reinvestment Act (CRA) since there is no other current pool of funds to solve that “hole.”
There is no current plan for an insurance solution in the event major insurance companies pull out of the market next year after the moratorium on cancelations expires.
There is no plan to purchase land outside of AB 797 to hold in trust and provide homeowners “liquidity” and “fair market value” for their properties if they choose to leave.
Philanthropy cannot purchase at scale the solution.
There is no plan to build homes affordably for those who want to rebuild and are not able to afford a rebuild and have no insurance pay outs to use.
There is no plan to fund the “funding gap” existing between the rebuild cost and insurance pay outs beyond SBA’s $500,000.
There is no plan to recapitalize the utilities currently, though there is a $200 million bill in Sacramento which may provide the funds if the companies consolidate.
A plan for economic development, leveraging the 36 month window to purchase and invest in businesses (thus creating a new economic base in Altadena) let alone reconstituting the small businesses here remains a long way off.
So on and so forth. Our first posts back in April go through the issues pretty clearly. We have offered solutions, so we are not without options, it is just nobody in political power is ready to do anything about these answers.
The Army Corps of Engineers will be winding up major operations on/about July 1. They are pretty close to finishing up their work here clearing residential lots.
We are almost six months into this process, and we are still watching all the various political elements in Los Angeles “work around the edges” and starting to move to the center. Nobody has stepped up to take the lead on a real Plan, rather, they continue to “nibble” and “test” to see where they can make their play.
Altadena and the Palisades are not united in their approaches (seeing there is common ground) to find a political solution to pressure electeds. Being divided allows for competing interests to “wedge” solutions instead of common cause. “Wedges” benefit those wanting to control and “divide” the disasters instead of leveraging them to get stronger solutions.
Power likes to have “wedges” so control can be won.
Considering LA’s insecure political situation for the next few years (2026 (mayor), 2028 (CEO election), 2030, and 2032 (addition of 4 more Supervisors)), the lack of a strong solution emerging is good for those looking to influence politics over the next 6 years.
Federal asks are out there to leverage the current Budget Reconciliation Bill to provide broader solutions for us through tax/investment options. That situation is extremely fluid and may or may not result in new “multipliers.”
Nobody is clearly articulating to residents how long the rebuilds will likely take. The Tubbs fire from 2017 provides a useful guide as the scale of destruction was similar. The rebuild is still occurring thus indicating the reality could be much longer than most are prepared for. The inputs are different (they got CDBG-DR money and we will not), but we have AB 797 and they did not, so we might be able to speed things up somewhat but capacity restraints exist.
The list is non-exhaustive but also indicates the broader scope of what we are working on here. As I have said all along, it is important for Altadena and Palisades residents to understand what is going on, what is realistic, what is being offered, and what should be offered. We have to ask. As keeps getting said to those with ideas being offered, it has to be integrated to be successful. Integration brings risk, but it is also how it will be done.
For instance, if you want to have a pre-approved set of plans, it is not about giving it to every builder, it is about integrating the builders into the plans to make the process seamless. Then you can “imbed” inspectors to “expedite” the process, thus speeding up the rebuild- the political need. You also get to bring finance together to move the process along- the financial incentive. You can have multiple entities or do it with community accountability and representation to present transparency and show people the pieces in real time- the residential need.
To get to solutions, we need to be creative and start to consolidate. We have reached the end of Stage 1. We have the pieces. We have gaps as well which can be found when the pieces are consolidated, discarded, or whatever. The leader to pull it together does not exist yet. They will emerge. They will bring in the various political inputs (“lefts and rights”) and combine them with the business outputs. The residents need to be considered and respected in the process, not dictated to.
There are a lot of moving pieces, but the above points out the challenges we know.