Survivors of the Park Fire, Franklin Fire, and the recent Palisades and Eaton fires would be eligible for direct mortgage relief

What you need to know: Governor Newsom is proposing an over $125 million package that includes disaster mortgage relief for homeowners whose homes have been damaged or destroyed by natural disasters since 2023 and are at risk of foreclosure, as well as mortgage counseling services.

LOS ANGELES - Governor Newsom today announced a new proposal to create an over $125 million mortgage relief program to assist homeowners whose homes were destroyed or severely damaged by recent natural disasters, placing them at risk of foreclosure. The proposal also includes funding to extend an existing counseling services program which would help affected homeowners navigate their recovery. The package would utilize existing mortgage settlement funding, and would not impact the proposed 2025-2026 budget. 

“As survivors heal from the trauma of recent disasters, the threat of foreclosure should be the last thing on their minds. This disaster mortgage relief program would help lift this burden and give families more time to focus on recovery.” - Governor Gavin Newsom

The package will be administered by the California Housing Finance Agency (CalFHA) and includes over $100 million in direct mortgage assistance, with an additional $25 million to extend an existing program that provides mortgage counseling and serves survivors by offering guidance on FEMA disaster assistance and other related needs. The program will provide mortgage relief for homeowners at risk of foreclosure and whose property was destroyed or substantially damaged as a result of declared emergencies since January 1, 2023. The proposal will be considered at CalHFA’s next meeting on February 20. Survivors of natural disasters since 2023, including those affected by the Park Fire, Franklin Fire, and the recent Palisades and Eaton Fires, would be eligible for mortgage assistance. Once approved, the direct assistance program and eligibility criteria will be developed and announced in more detail.

The Governor last month announced that five major lenders (Bank of America, Citi, JPMorgan Chase, U.S. Bank, and Wells Fargo) and recently announced that there are now 420 state-chartered banks, credit unions, and mortgage lenders who have committed to offering impacted homeowners a 90-day forbearance of their mortgage payments, without reporting these payments to credit reporting agencies, and the opportunity for additional relief.

Funding for the mortgage relief program comes from settlement funds California secured from big banks resolving allegations of misconduct during the mortgage crisis.

This adds to the Governor’s work to provide tax and mortgage relief to those impacted by the Los Angeles area firestorms. California postponed the individual tax filing deadline to October 15 for Los Angeles County taxpayers. Additionally, the state extended the January 31, 2025, sales and use tax filing deadline for Los Angeles County taxpayers until April 30 - providing critical tax relief for businesses. Governor Newsom suspended penalties and interest on late property tax payments for a year, effectively extending the state property tax deadline. The Governor also worked with state– and federally-chartered banks that have committed to providing mortgage relief for survivors in certain zip codes.

Historic recovery and rebuilding efforts - faster than ever before 

As the Los Angeles community recovers from the firestorm disaster, Governor Newsom is removing barriers and helping survivors quickly by:  

• Cutting red tape to help rebuild Los Angeles faster and stronger. Governor Newsom issued an executive order to streamline the rebuilding of homes and businesses destroyed - suspending permitting and review requirements under the California Environmental Quality Act (CEQA) and the California Coastal Act. The Governor also issued an executive order further cutting red tape by reiterating that permitting requirements under the California Coastal Act are suspended for rebuilding efforts and directing the Coastal Commission not to issue guidance or take any action that interferes with or conflicts with the Governor’s executive orders. The Governor also issued an executive order removing bureaucratic barriers, extending deadlines, and providing critical regulatory relief to help fire survivors rebuild, access essential services, and recover more quickly.
• Fast-tracking temporary housing and protecting tenants. To help provide necessary shelter for those immediately impacted by the firestorms, the Governor issued an executive order to make it easier to streamline construction of accessory dwelling units, allow for more temporary trailers and other housing, and suspend fees for mobile home parks. Governor Newsom also issued an executive order that prohibits landlords in Los Angeles County from evicting tenants for sharing their rental with survivors displaced by the Los Angeles-area firestorms.
• Mobilizing debris removal and cleanup. With an eye toward recovery, the Governor directed fast action on debris removal work and mitigating the potential for mudslides and flooding in areas burned. He also signed an executive order to allow expert federal hazmat crews to start cleaning up properties as a key step in getting people back to their properties safely. The Governor also issued an executive order to help mitigate risk of mudslides and flooding and protect communities by hastening efforts to remove debris, bolster flood defenses, and stabilize hillsides in affected areas. 
• Safeguarding survivors from price gouging. Governor Newsom expanded restrictions to protect survivors from illegal price hikes on rent, hotel and motel costs, and building materials or construction. Report violations to the Office of the Attorney General here.
• Directing immediate state relief. The Governor signed legislation providing over $2.5 billion to immediately support ongoing emergency response efforts and to jumpstart recovery efforts for Los Angeles. California quickly launched CA.gov/LAfires as a single hub of information and resources to support those impacted and bolsters in-person Disaster Recovery Centers. The Governor also launched LA Rises, a unified recovery initiative that brings together private sector leaders to support rebuilding efforts. Governor Newsom announced that individuals and families directly impacted by the recent fires living in certain zip codes may be eligible to receive Disaster CalFresh food benefits.
• Getting kids back in the classroom. Governor Newsom signed an executive order to quickly assist displaced students in the Los Angeles area and bolster schools affected by the firestorms.
• Protecting survivors from real estate speculators. The Governor issued an executive order to protect firestorm survivors from predatory land speculators making aggressive and unsolicited cash offers to purchase their property.
• Helping businesses and workers get back on their feet. The Governor issued an executive order to support small businesses and workers, by providing relief to help businesses recover quickly by deferring annual licensing fees and waiving other requirements that may impose barriers to recovery.