Cops were called to the Thousand Oaks neighbourhood after the actress allegedly tried to light a blaze on a resident's driveway. The 27-year-old actress was also accused of trespassing, reported TMZ online.
Herman, who owns Chinga Chang Records, has handed over some money to the owner of the property in an effort to help Bynes.
Herman said has watched the actress' bid to become a rapper with interest and is keen to sign her to his label.
The 'Hairspray' actress was placed on psychiatric hold following the incident and remains in hospital as a judge decides whether to place her under her parent's conservatorship so they can take control of her affairs.