GKN Settlement Claims Program Opens October 27th

Posted By: David Cordero

AAOC Helps Secure Reimbursement Limit Exception for Impacted Housing Providers in GKN Aerospace Settlement

Rental property owners and operators that provided refunds of pre-paid rent or rent deductions to their residents following their mandatory evacuation during the GKN Aerospace (GKN) chemical emergency in Garden Grove this past May will be eligible for reimbursement as part of the $125 million negotiated settlement between GKN and the Orange County District Attorney’s Office that was approved earlier this week. The settlement includes a $100 million claims program for residents and businesses that were impacted by the evacuation.

Additionally, as a result of the advisory role AAOC played to District Attorney Todd Spitzer during the negotiations, rental housing providers have been granted an exception from the settlement’s $5,000 per day reimbursement limit for impacted businesses in the evacuation zone. The exception should make it possible for eligible rental property owners to be fully reimbursed for their financial damage.

AAOC Executive Director David Cordero said it was critical that the district attorney be made aware, going into settlement negotiations, of the unique financial loss that only rental housing providers would experience due the evacuation and state of emergency - the result of a new state law that took effect earlier in the year.

In the aftermath of the January 2025 wildfires in Los Angeles, SB 610 was introduced and later signed into law. It changed California Civil Code Section 1941.9, and among other provisions exempted renters from paying rent for the days they are prohibited from occupying their homes during a mandatory evacuation order issued as part of a state or federally declared state of emergency. Under the law, rental housing providers must offer either pro-rated rent refunds or rent credits to their impacted residents.

“Recognizing what was at stake for our members and other rental housing providers in the area, AAOC advised District Attorney Spitzer about the law and explained not only how it applied but also how extensively it would apply across the GKN evacuation zone,” said Cordero. “He was dismayed by the untenable position rental property owners found themselves in - as the only type of business operation that state law required to refund revenue received before the incident had even occurred - and he took bold steps in the negotiations to ensure sufficient funding would be available to reimburse these business owners for their losses. We truly appreciate Mr. Spitzer’s leadership and resolve to hold GKN accountable and ensure housing providers would not be subjected to significant financial damage.”

The $100 million claims program for eligible residents and businesses impacted by the GKN Aerospace chemical incident will open on Tuesday, October 27, at 12 p.m., and a community information meeting will also be held that evening, as follows:

What: GKN Claims Program Community Meeting
When: Tuesday, October 27, 2026
Time: 6 p.m.
Where: Delta Hotels Anaheim Garden Grove (12021 Harbor Blvd., Garden Grove)
Format: Presentation on claims program; Update on GKN facility safety enhancements; Questions and conversation with GKN representatives.

Final eligibility and documentation requirements will be announced when the claims program opens for submissions on Tuesday, October 27, 2026. Impacted rental housing providers are advised to begin compiling documentation to demonstrate their provision of pre-paid rent refunds or rent credits to their tenants during the evacuation period (May 21-26, 2026). Additional guidance on acceptable documentation will be provided when the program opens.

For updated information, visit the GKN Aerospace Garden Grove website, or contact AAOC at (714) 245-9500 or advocacy@aaoc.com.