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2mo ago

California Proposes $125 Million Mortgage Relief for Disaster Victims

The program, funded by a legal settlement, aims to assist homeowners affected by natural disasters since 2023 with foreclosure prevention and counseling support.

Firefighters inspect a house burned in the Palisades Fire in the Pacific Palisades neighborhood on January 15, 2025 in Los Angeles, California.
This multifamily building at 15340 Albright St. was destroyed during the Palisades fire, as seen on Monday, Feb. 3, 2025. (Photo by Jeff Gritchen, Orange County Register/SCNG)

Overview

  • California Governor Gavin Newsom has proposed a $125 million mortgage relief program for homeowners impacted by natural disasters, including recent wildfires in Los Angeles County.
  • The program would allocate over $100 million for direct mortgage assistance and $25 million to expand counseling services to help homeowners navigate recovery and disaster aid processes.
  • Funding will come from a mortgage settlement fund secured in 2012 by then-Attorney General Kamala Harris, with no impact on the state’s 2025-26 budget.
  • Eligible homeowners include those whose properties were destroyed or severely damaged by declared emergencies since 2023, such as the Park, Franklin, Palisades, and Eaton fires.
  • The California Housing Finance Agency will oversee the program, with details and eligibility criteria to be finalized at its February 20 board meeting.