Latest news with #CalHFA
Los Angeles Times
2 days ago
- Business
- Los Angeles Times
CalAssist Mortgage Fund provides $105M in aid for California Disaster Survivors
The CalAssist Mortgage Fund is a new source of financial relief for California homeowners whose properties were destroyed after recent disasters. The fund provides grants of up to $20,000 to cover three months of mortgage payments for eligible homeowners. The state has allocated $105 million for the program. 'California is extending this ongoing support to disaster victims in Los Angeles and beyond, by assisting with mortgage payments to relieve financial pressure and stress as families rebuild and recover,' Governor Gavin Newsom said in a press release. The grants do not need to be repaid and will be sent directly to mortgage companies, minimizing the steps required for processing and allowing homeowners to focus on recovery. Major fires, floods, and other government-declared disasters or states of emergency that occurred between January 2023 and January 2025 are qualifying events for the grants, including the Eaton and Palisades fires that burned thousands of homes. Research by the Federal Reserve Bank of Philadelphia, which analyzed wildfire losses in California between 2017 and 2021, found that nearly 40% of damaged homes were underinsured by more than $100,000, and more than 1 in 5 had shortfalls exceeding $200,000. The prevalence of these types of insurance gaps, combined with the emotional and financial toll of losing a home, highlights the importance of programs like the CalAssist Mortgage Fund. 'Homeowners whose home was destroyed in a recent fire, flood or other disaster deserve support in their recovery. We know that recovery takes time, and the state is here to support,' Newsom said in the release. The California Housing Finance Agency (CalHFA) is administering the program. In addition to the mortgage grants, CalHFA is also providing $25 million in housing counseling support through its National Mortgage Settlement (NMS) Housing Counseling program. This program is designed to help homeowners understand their options, complete applications, and navigate the recovery process. To be eligible for financial assistance through the CalAssist Mortgage Fund, an applicant's primary residence must be a single-family home, condo, or permanently affixed manufactured home. Properties with up to four units are included. Disaster survivors must also have an active mortgage or reverse mortgage, and the property cannot currently be in foreclosure. Applications for the CalAssist Mortgage Fund open on June 12, 2025. Homeowners are encouraged to apply as soon as possible before funds are exhausted. Steps to Apply For more information on eligibility and the application process, visit Disaster survivors who need assistance can also call 1-800-501-0019 between 8 a.m. and 5 p.m., Monday through Friday. The LA County Department of Consumer and Business Affairs' foreclosure prevention expert can help homeowners facing difficulty paying their mortgage. You can also discuss other relief options with a U.S. Department of Housing and Urban Development (HUD)-certified housing counselor.
CBS News
3 days ago
- Business
- CBS News
New state initiative provides $100 million in mortgage relief to Southern California homeowners who lost homes during wildfires
A new state initiative will provide $100 million in mortgage relief to Southern California homeowners who lost their homes during the Eaton and Palisades fires. The CalAssist Mortgage Fund, administered by the California Housing Finance Agency, was announced at a news conference Thursday morning. The fund is designed specifically for people who lost their homes or whose homes were left uninhabitable due to the recent disasters between January 2023 and January 2025. CalHFA said the Eaton and Palisades fires destroyed more than 6,300 homes and caused millions of dollars' worth of damage to over 1,500 structures, including businesses. The fund will provide eligible homeowners with grants up to $20,000. "It's a beacon of hope, something I know many in this area are looking for," LA County Supervisor Kathryn Barger said. "It offers timely, meaningful relief and a path forward for those struggling to get on their footing." The CalHFA said applications will be reviewed in the order they are submitted, and funds will only be available until they are exhausted. The applications will open on June 12 and the program is free. Homeowners do not need to repay their grants. Any grants given to a homeowner will go straight to the mortgage servicer. "You can be using this grant of funds in combination with other assistance funds that you have received since the disaster or will be receiving," said Rebecca Franklin, chief deputy director of CalHFA. Eligibility criteria include: The applicants' primary residence was destroyed or became uninhabitable due to a qualified disaster from Jan. 1, 2023, through Jan. 8, 2025 The applicant meets the program income limits The applicant has a mortgage or a reverse mortgage The applicant owns a single-family home, condo, or permanently affixed manufactured home "This program is part of CalHFA's overall plan to help Californians rebuild their homes with the least amount of pain as possible," CalHFA said. More information about the CalAssist Mortgage Fund can be found using this link.
Yahoo
19-02-2025
- Business
- Yahoo
Gov. Gavin Newsom proposes $125M mortgage relief program to help victims of recent natural disasters
Gov. Gavin Newsom on Wednesday proposed a new $125 million package to help residents whose homes were destroyed or damaged by recent natural disasters, including the recent wildfires. The program would aim to help homeowners whose homes were destroyed or severely damaged by recent natural disasters, placing them at risk of foreclosure. Funding for the program would also extend an existing counseling services program, which helps affected homeowners navigate their recovery. Newsom's office also noted that the relief package would utilize existing mortgage settlement funding and would not impact the proposed 2025-26 budget. California bill would require insurers to pay full coverage without itemized lists '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,' Newsom said in a statement. 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. The California Housing Finance Agency would administer the program, which would include 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, according to the governor's office. The proposal will be considered at the CalHFA's next meeting on Feb. 20. The direct assistance program and eligibility criteria will be developed and announced in more detail, if approved. Trump official considering running for California governor if Kamala Harris enters race While help could be on the way for impacted homeowners, many still face uncertainty about insurance coverage. State Farm General, California's largest insurer, requested a rate hike averaging 22% due to its 'dire' financial situation after the deadly and destructive L.A. County wildfires. California Insurance Commissioner Ricardo Lara rejected the request and is asking to speak with company officials about their financial situation. This comes after the company asked for a separate rate hike request to raise rates by 30% for homeowners, 36% for condo owners and 52% for renters, on average, last June. That request is still pending. Since 2023, State Farm hasn't accepted new insurance applications for all business and personal property in California. Since then, other companies have announced similar moves. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
