California board approves $112M mortgage assistance for disaster victims

The CalHFA Audit and Risk Committee and General Board Meeting held on February 20, 2025, focused on the implementation of a new mortgage assistance program aimed at supporting homeowners affected by recent disasters in California. The meeting highlighted the importance of providing timely financial relief to low- to moderate-income households impacted by wildfires and other federally declared disasters.

Key discussions centered around the structure of the mortgage assistance program, which will offer up to six months of mortgage payments for eligible homeowners. The program is designed to complement existing forbearance measures provided by mortgage companies, ensuring that homeowners receive additional support without substituting these critical concessions. The board emphasized that the assistance would not require repayment, as it will be provided as a grant rather than a loan.

The board also discussed the criteria for eligibility, noting that while the counseling support is available regardless of income, the actual mortgage assistance will be income-restricted. The intention is to prioritize those with moderate incomes, with specific verification processes in place.

In response to the evolving needs of disaster victims, the board agreed to modify the program's language to encompass a broader range of disasters beyond just wildfires, reflecting the ongoing challenges faced by residents across the state. The proposed funding for the program is set at $112 million, with plans to launch the initiative shortly after the initial 90-day forbearance period for affected homeowners.

Overall, the meeting underscored the commitment of CalHFA and its partners to provide effective and timely assistance to those in need, while also ensuring that the program remains adaptable to the changing landscape of disaster relief in California. The board aims to finalize the program details and move forward with implementation as quickly as possible, with a target to deliver assistance before the summer.