The California Housing Finance Agency Board on Feb. 20 approved an administrative plan to use remaining National Mortgage Settlement (NMS) funds for two purposes: to extend a statewide HUD‑certified housing counseling program and to provide time‑limited mortgage payments to homeowners whose primary residences were damaged or destroyed in presidentially declared disasters since Jan. 1, 2023.

Rebecca Franklin, CalHFA chief deputy director (acting executive director), told the board the governor requested the agency use the remaining NMS funds to support disaster recovery. Staff proposed two tranches: an expansion of the existing housing counseling program (staff cited roughly 80,000 households served through the counseling effort to date) and a mortgage assistance program that would pay three months — and up to six months if funding allows — of mortgage payments for affected households. In the final motion approved by the board, the board authorized use of $112,000,000 for the mortgage‑payment program and retention of $25,000,000 to expand the housing counseling effort; staff said the counseling funds will fund both general HUD‑certified counseling and an expedited disaster counseling track focused on insurance claims, FEMA/SBA navigation and immediate basic needs.

A CalHFA housing‑counseling lead described the counseling expansion: the core HUD program provides pre‑purchase, eviction prevention, foreclosure prevention and financial literacy counseling at no cost to households; the proposed disaster‑response counseling would be a truncated, expedited session aimed at triage and connection to resources such as FEMA, SBA, local relief and consumer protection assistance.

Franklin said staff would reuse the mortgage‑relief application platform developed for CalHFA’s prior federally funded mortgage relief program to speed implementation; the board asked staff to return with program details and committed to regular updates. Staff said they would prioritize low‑ and moderate‑income homeowners and would coordinate with the Governor’s Office of Emergency Services, HCD and DFPI to reach affected communities. Staff estimated a June launch if procurement and vendor modifications proceed on an expedited schedule.

The board amended the resolution language during the meeting to clarify geographic scope and program terms; the final motion (Resolution 25‑05) was moved by Director Prince, seconded by Director Henning, and passed on roll call. The approved resolution directs the agency to use $25,000,000 for expanded housing counseling and $112,000,000 to fund mortgage payments of three months up to six months for homeowners in presidentially declared disasters since Jan. 1, 2023; staff will return to the board with implementation details.

Why this matters: The action directs a state housing finance agency to redeploy settlement funds toward disaster recovery for homeowners, combining counseling and short‑term mortgage assistance to prevent displacement and support rebuilding. Staff emphasized coordination with state disaster agencies and the Department of Financial Protection and Innovation to align outreach and lender engagement.

Next steps: Staff will finalize program rules, vendor modifications and outreach plans and provide the board with an implementation update at the March workshop.