Assembly passes AB 238 to allow up to a year of mortgage forbearance for Palisades fire victims

The California State Assembly on March 6, 2025, passed AB 238, which allows eligible homeowners who lost their homes or were directly affected by the Palisades fire to defer mortgage payments for up to one year. The bill passed with urgency and drew bipartisan support in the chamber.

Assemblymember Harbidian, who presented the bill, called it “a real simple solution,” saying AB 238 would provide “up to a year of forbearance payments for those who have lost their homes or have been directly impacted by the fires.” Assemblymember Erwin, speaking as a joint author, said the bill “strikes an important balance” by allowing affected constituents to defer payments while keeping mortgage servicers informed of the situation.

AB 238 was described on the floor as an urgency measure so its provisions can take effect immediately. The clerk announced that the bill required a 54-vote threshold for the urgency vote; the roll call on the urgency clause and the measure recorded 66 ayes and 0 noes. The Assembly then passed the measure.

Supporters told colleagues the bill had been developed with stakeholder input and that objections had been addressed; Harbidian said stakeholders had moved to a neutral stance as of the previous Friday. No formal opposition was recorded on the floor during the debate.

The bill’s immediate effect stems from its urgency clause as read into the record; further administrative implementation steps—such as guidelines for mortgage servicers and any eligibility verification processes—were not detailed on the floor and will be handled through the bill’s implementation process.

Votes at the roll call: Aye 66, No 0 (urgency and measure passed).