California Launches $105 Million Mortgage Relief Fund For Disaster Survivors

California launched a $105 million mortgage grant program Thursday to help homeowners whose properties were destroyed or left uninhabitable by recent disasters, including the devastating Eaton Fire that burned through Altadena. 

The CalAssist Mortgage Fund will provide eligible homeowners grants of up to $20,000 to cover three months of mortgage payments, Gov. Gavin Newsom announced. 

Applications open June 12 and will be processed on a first-come, first-served basis until funds are exhausted. 

“Homeowners whose home was destroyed in a recent fire, flood or other disaster deserve support in their recovery. We know that recovery takes time, and the state is here to support. Today, California is extending this ongoing support to disaster victims in Los Angeles and beyond, by assisting with mortgage payments to relieve financial pressure and stress as families rebuild and recover,” Newsom said, according to California Office of Emergency Services News.

The program covers homeowners affected by the Eaton Fire, Palisades Fire, Park Fire and San Diego floods. Eligible disasters must have occurred between Jan. 1, 2023, through Jan. 8, 2025. 

The Eaton Fire started Jan. 7 at 6:18 p.m. and burned 14,021 acres in Los Angeles County near Altadena Drive and Midwick Drive before reaching full containment Jan. 31, according to the California Department of Forestry and Fire Protection. 

To qualify, applicants must own single-family homes, condos or permanently affixed manufactured homes that may include up to 4 units and meet income requirements. The program covers those with either a mortgage or reverse mortgage. In Los Angeles County, the maximum annual income limit is $140,700 regardless of household size, according to LAist. 

More than 300 households in both the Altadena and Palisades fire areas have reverse mortgages, according to a County of Los Angeles video. 

The grants do not require repayment and applying is free. Funds will be sent directly to approved homeowners’ mortgage servicers. 

“When disaster strikes and families lose their homes, every step toward recovery makes a meaningful difference. The CalAssist Mortgage Fund will provide more than $100 million in valuable support to help ease the financial pressure survivors face, giving them a little more breathing room as

they navigate the challenging path of rebuilding their lives,” said Tomiquia Moss, Secretary of California’s Business, Consumer Services and Housing Agency, according to California Office of Emergency Services News. 

“Today’s announcement is more than welcomed. It’s a beacon of hope. Something that I know many in this area are looking for,” Los Angeles County Supervisor Kathryn Barger said during a news conference in Altadena, according to Spectrum News 1. 

One state official said many families should receive the support. 

“For communities affected by disasters, the CalAssist Mortgage Fund will provide homeowners with financial assistance that allows them to focus on healing and recovery. Hard-working families across the state, from Altadena to Chico, deserve relief as they work to recover from these devastating events,” said Rebecca Franklin, Chief Deputy Director at the California Housing Finance Agency, according to California Office of Emergency Services News. 

The California Housing Finance Agency will manage the program. Homeowners can call 800-501-0019 for application assistance or visit CalAssistMortgageFund.org for more information. 

Required documents include mortgage statements, bank statements, utility bills, insurance claims and proof of income, according to LAist.

The program supplements existing relief efforts, including 90-day mortgage forbearance commitments secured from more than 400 financial institutions for wildfire victims.