Gov. Gavin Newsom proposes $125 million in mortgage relief for California disaster victims
A new mortgage relief program for Californians who've had their homes destroyed by recent natural disasters is in the works.
On Wednesday, Gov. Gavin Newsom announced a proposed $125 million program geared at helping wildfire victims.
The program will be for homeowners whose homes have been destroyed or damaged, and who are at risk of foreclosure, in natural disasters dating back to 2023. This means victims of the Park, Franklin, Palisades and Eaton fires could be eligible for relief.
"As survivors heal from the trauma of recent disasters, the threat of foreclosure should be the last thing on their minds. This disaster mortgage relief program would help lift this burden and give families more time to focus on recovery," Newsom said in a statement about the proposal.
Newsom's office also noted that the relief package would use existing mortgage settlement funding, meaning no impact to his already proposed 2025-26 budget for the state.
The California Housing Finance Agency would be administering the package, if it's approved.
In the wake of the historically destructive Los Angeles wildfires, California officials have already postponed the individual tax filing deadline for Los Angeles County residents. Newsom has also extended the state property tax deadline for LA wildfire victims.
At the same time, California homeowners are still facing financial uncertainty in the wake of the LA fires. State Farm, the state's largest insurer, has asked for an emergency insurance rate increase as high as 22% for some homeowners.
California's Insurance Commissioner has scheduled a meeting with State Farm for the company to justify its request.
