Mortgage Relief for Fire Victims
California Governor Gavin Newsom has announced a mortgage relief program for victims of recent wildfires in the Los Angeles area. The initiative will provide up to $100,000 to eligible families to aid in their recovery from climate-driven disasters.
- The CalAssist Mortgage Fund, administered by the California Housing Finance Agency (CalHFA), is providing the relief and is backed by $105 million from the National Mortgage Settlement. - This relief program specifically targets homeowners affected by the Palisades and Eaton fires in Los Angeles County, as well as the Park Fire in Butte, Tehama, and Plumas counties, for disasters occurring between January 1, 2023, and January 8, 2025. - Initially offering three months of assistance, the program was expanded to provide up to a full year of mortgage payments, with the maximum aid increased from $20,000 to $100,000 per household. - To qualify, homeowners in Los Angeles County must have a household income of up to $281,400, an increase from the previous limit to allow more families to be eligible. - In addition to this program, new legislation has been introduced by Assemblymember John Harabedian to extend mortgage forbearance for victims of the Eaton and Palisades fires for an additional two years. - Another proposed bill, the California Emergency Mortgage Relief Act (AB 1842), aims to create a statewide program to pause mortgage payments for homeowners affected by any declared state of emergency. - Beyond direct financial aid, over 160 lending institutions have committed to providing an additional 90-day forbearance period for qualified borrowers impacted by the 2025 Los Angeles firestorms. - The state has already paid out $6.5 million to 793 recipients, the majority of whom are survivors of the Palisades and Eaton fires.
