In a recent government meeting, officials provided a comprehensive overview of California's mortgage assistance program, which was launched in response to the economic fallout from the COVID-19 pandemic. The program aimed to provide immediate relief to homeowners facing foreclosure as the moratorium on such actions was set to expire.

California received over $1 billion from the federal housing assistance fund, representing 10% of the national allocation. The program initially focused on mortgage assistance but expanded in June 2022 to include past due property tax payments and later introduced a partial claim and deferment program in February 2023. By May 2024, the application portal was closed after distributing approximately $880 million in grants to over 36,000 households.

A significant achievement highlighted was the program's outreach to historically disadvantaged communities, with 56% of funds allocated to these groups. The average area median income (AMI) of assisted households was reported to be just under 70%. The program also successfully prevented 902 foreclosure sales, demonstrating its impact on homeowners in imminent danger of losing their homes.

Officials emphasized the importance of a streamlined application process, achieving a median processing time of 39 days, significantly below the initial goal of 60 days. Feedback from nearly 19,000 applicants indicated that almost 90% found the application process user-friendly.

The program's innovative approach included weekly meetings with mortgage servicers to ensure effective communication and timely processing of applications. California's efforts were recognized by the U.S. Treasury as a model for other states, particularly for its expansion into partial claims and loan deferments.

Community-based organizations played a crucial role in outreach, helping to connect with diverse populations and ensuring that the program reached those most in need. The meeting underscored the collaborative efforts that contributed to the program's success, highlighting the importance of targeted communication and support for vulnerable communities.