California launches new fund for disaster-stricken homeowners

California is set to introduce the CalAssist Mortgage Fund on June 12, 2025, aimed at providing financial relief to homeowners affected by recent disasters. The fund offers grants of up to $20,000 for those whose homes were destroyed or rendered uninhabitable due to fires, floods, and other calamities. This initiative includes assistance for victims of the Los Angeles firestorms earlier this year.

Governor Gavin Newsom emphasized the state's commitment to supporting disaster victims: “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.”

The program will be managed by the California Housing Finance Agency (CalHFA) and paired with an additional $25 million for housing counseling through CalHFA’s National Mortgage Settlement Housing Counseling Program. It will not impact the proposed 2025-2026 budget.

Eligible homeowners can apply for grants covering up to three months of mortgage payments when applications open on June 12. Tomiquia Moss from California's Business, Consumer Services and Housing Agency noted the importance of these funds: “When disaster strikes and families lose their homes, every step toward recovery makes a meaningful difference,” she said. “The CalAssist Mortgage Fund will provide more than $100 million in valuable support to help ease the financial pressure survivors face.”

Information about application procedures is available at CalAssistMortgageFund.org. Rebecca Franklin from CalHFA stated that this fund would allow affected communities "to focus on healing and recovery."

For additional support, homeowners can call 800-501-0019 during business hours or access free services from HUD-certified housing counseling agencies.

Previously, Governor Newsom secured commitments from over 400 financial institutions offering impacted homeowners a 90-day mortgage payment forbearance without penalties.

In efforts to expedite rebuilding after this year's firestorms in Los Angeles, Governor Newsom announced several measures including an AI tool for permit approvals and executive orders streamlining processes under environmental regulations.

Additionally, Engaged California was launched as a platform allowing residents a voice in policy discussions related to rebuilding efforts following disasters like the Los Angeles wildfires.