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.

• 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.

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