California expands mortgage assistance for fire and disaster victims under new program

In a pivotal moment for California homeowners, the CalHFA General Board Meeting on May 22, 2025, unveiled a new mortgage assistance program aimed at supporting families displaced by natural disasters. This initiative, which builds on the existing California Mortgage Relief Program, is designed to provide critical financial relief to those affected by events such as wildfires, mudslides, and flooding.

During the meeting, a key update was shared regarding the transition of the mortgage assistance program to Ms. Madsen, marking a significant leadership change. The outgoing presenter emphasized the importance of this program, stating, "We want to create criteria that really focuses on the more vulnerable, the people at the current set of needs." This sentiment underscores the program's commitment to addressing the urgent needs of Californians facing housing instability due to disasters.

The new mortgage assistance program will offer up to three months of mortgage payments, with a maximum benefit of $20,000, aimed at helping families bridge financial gaps during recovery. The program is particularly focused on those whose homes have been destroyed or deemed uninhabitable, ensuring that support is directed to the most affected individuals.

In addition to mortgage relief, the meeting highlighted the expansion of the HUD-approved housing counseling program, which will provide essential services such as foreclosure prevention, financial literacy, and guidance for disaster victims. This comprehensive approach aims to connect families with the resources they need to rebuild their lives after devastating events.

As California continues to face the challenges of natural disasters, this new initiative represents a proactive step towards ensuring that residents can maintain their homes and communities. The CalHFA board's commitment to supporting vulnerable populations during these trying times is a testament to the state's dedication to housing stability and recovery.