California Gov. Gavin Newsom announced an expansion of mortgage relief for survivors of qualified disasters, including the 2025 Los Angeles firestorms.
Newsom said the expansion makes available up to a full year of mortgage assistance — up to $100,000 — that does not need to be repaid. The expansion also allows more families to access this assistance with broader income eligibility, according to a release.
“As these communities continue rebuilding, we’re not going anywhere. The state of California is a committed partner every step of the way on the road to recovery. This disaster was unprecedented and demanded flexibility and real-time action,” Newsom said in the release. “We’ve been on the ground, listening and adjusting to meet people’s evolving needs. That’s why we’re expanding this program — to close the gap between relief and long-term recovery, and make sure folks get the help they need to move forward.”
The governor said that the expansion is a response to feedback and concerns from homeowners seeking to rebuild and adds to the governor’s work to help provide LA firestorm survivors with financial recovery.
Agreements with Lenders
In the past few months, Newsom has announced additional agreements with lenders to offer forbearance to homeowners and the intention to create a new financing program to help survivors bridge the gap between insurance payouts and the cost of rebuilding.
Under the expanded program, Newsom said that eligible homeowners may receive 12 months of mortgage payments, paid directly to their mortgage servicers.
He said it is a fourfold increase of the program that previously offered three months of relief. The state release said that assistance is available to homeowners who are current on their mortgage, in forbearance, or behind on payments. It said that families who previously received three months of assistance will be offered additional support, bringing total assistance to a full year.
The program also will now cover up to $100,000 in payments, up from $20,000, the state said, and will allow families to take full advantage of the 12-month expansion, offering families major financial relief, allowing them to focus their own funds on basic needs, alternative housing, and rebuilding.
Already Paid $6.5M to 793 Recipients
“This expansion is about lifting weight off families who have lost so much,” said Rebecca Franklin, CalHFA Chief Deputy Director. “The timing here is critical. Many families affected by the LA fires have been on forbearance for a year now and haven’t made a mortgage payment since the fires started. By offering a full year of mortgage assistance and expanding income eligibility, we’re making it clear that this support is real, available, and intended for families who are still recovering.”
The state said that so far, it has paid $6.5 million to 793 recipients of recent natural disasters – the vast majority of whom are survivors of the Palisades and Eaton fires. Newsom said that significant funding remains to help survivors, including those who may need continued relief when forbearance ends.
The funding is now available to more survivors as income limits have increased, so more families can qualify for help.
In Los Angeles County, for example, households with a combined annual income of up to $281,400 now qualify. That reflects a $70,000 increase from the previous limit.
Director Mortgage Relief
The CalAssist Mortgage Fund, administered by the California Housing Finance Agency (CalHFA), was launched to provide direct mortgage relief to homeowners whose primary residences were destroyed or rendered uninhabitable by qualifying disasters, the state said. Since its launch in June, the program has helped disaster-impacted homeowners across California stabilize their housing while navigating insurance claims and rising construction costs.
Federal officials at the Small Business Administration and White House argue, however, that $3.2 billion in federal loans already are approved but are being blocked by California’s “local permitting backlogs” and “red tape.”
SBA Administrator Kelly Loeffler previously called California’s state and local permitting backlog a “nightmare” that has dragged out wildfire recovery, Fox Business reported.
“With President Trump’s leadership and alongside EPA, the SBA is opening an expedited path to recovery for every borrower who has been held hostage by the bureaucracy of Gavin Newsom and Karen Bass,” Loeffler said.
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