In the wake of devastating fires such as the Eaton and Palisades fires, many homeowners in California are facing the harsh reality of continuing to pay their mortgages despite losing their homes to flames.
To assist these affected individuals, the California Housing Finance Agency has introduced the CalAssist Mortgage Fund program, unveiled on Thursday, which aims to provide financial relief for those looking to rebuild.
Eligible homeowners can receive up to three months of mortgage payments, with a maximum grant amounting to $20,000, which does not require repayment.
L.A. County Supervisor Kathryn Barger expressed the urgency of the situation, emphasizing that residents of Altadena are eager to remain in their community and rebuild their lives affected by the Eaton Fire.
“Many are facing significant financial challenges, and we need to keep hope alive,” Barger stated during a news conference announcing the program in Altadena.
With the application portal opening on June 12 at CalAssistMortgageFund.org, officials are encouraging homeowners to apply promptly for assistance.
The funding for the program totals $105 million, and once these funds are exhausted, any future applications for assistance will be denied.
To qualify for the CalAssist program, homeowners must demonstrate that their primary residence was destroyed in a California disaster occurring between January 1, 2023, and January 8, 2025.
This includes not only the recent Eaton and Palisades fires but also previous catastrophic events, such as the 2024 Park Fire and Hurricane Hilary in 2023.
Additionally, applicants are required to meet income limits, with the maximum annual income set at $140,700 for Los Angeles County, irrespective of household size.
As the opening date for applications approaches, homeowners are advised to gather necessary documents, including mortgage statements, bank statements, utility bills, insurance claims, and proof of income.
Lori Gay, president of the nonprofit Neighborhood Housing Services of Los Angeles County, cautioned residents against procrastination, stating, “That $100 million will go like hot cakes.”
To assist with the application process, Rebecca Franklin, chief deputy director of the California Housing Finance Agency, recognized that many homeowners may find the documentation and technical requirements overwhelming.
Homeowners can reach out for assistance by calling the program’s contact center at (800) 501-0019, where they can receive guidance from federally certified housing counselors.
“We understand that mortgage relief can be complex and unfamiliar for many,” Franklin remarked, urging individuals to connect with the program for support.
The CalAssist program intends to send relief payments directly to mortgage servicers, which means that homeowners with a participating mortgage servicer can benefit from the aid.
A list of these participating mortgage servicers is available on the CalAssist website for homeowners to reference.
Governor Gavin Newsom had previously announced a mortgage forbearance program shortly after the L.A. fires, which saw over 400 mortgage companies agreeing to temporarily allow borrowers to delay monthly payments.
However, as these forbearance periods are concluding, Barger has reported hearing from distressed constituents struggling to get back on track.
“Forbearance didn’t mean forgiveness,” she reminded, stating that CalAssist will provide much-needed breathing room for the next three months, allowing homeowners up to $20,000 to strategize their next steps.
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