Don't despair, GG. You will find folk music in Los Angeles. There's a couple who do nice house concerts in Long Beach - I heard Steve Gillette and Cindy Mangsen there. From the conversation I overheard, I gathered that there are pockets of interest here and there all over the LA area. I'd say the best thing to do is check the Dirty Linen concert listings and hit a few concerts, particularly house concerts, and then start asking questions.
I know of only one folk music club in the area, McCabes; but what they had was mostly singer-songwriter performances, so I didn't go when I was working doen there. There are various outdoor festivals and scattered concerts, enough so you can hit at least a couple good concerts a month.
I could give you more specific information about what's going on here in scenic and cultured Northern California, but my house concert suggestion should work for you down there.
-Joe Offer, Sacramento-