By Redacción
Redaccion@latinocc.com
California Gov. Gavin Newsom announced a major expansion of the state’s CalAssist mortgage relief program, increasing assistance to up to one year of payments and raising the cap to $100,000 for homeowners affected by qualified disasters, including the 2025 Los Angeles firestorms.
The expansion quadruples the previous benefit, which covered three months of payments with a $20,000 cap. Under the revised program, eligible homeowners may receive up to 12 months of mortgage payments sent directly to their servicers and do not have to repay the funds.
“As these communities continue rebuilding, we’re not going anywhere,” Newsom said. “The state of California is a committed partner every step of the way on the road to recovery.”
One Year of Mortgage Relief
The expanded program is part of California’s effort to assist survivors of the 2025 Los Angeles firestorms, including the devastating Palisades and Eaton fires that destroyed thousands of homes.
Homeowners who are current on their mortgage, in forbearance or behind on payments are eligible. Those who previously received three months of assistance will be offered additional support to reach a full year.
The total assistance cap increases from $20,000 to $100,000, allowing families to focus personal funds on housing, basic needs and rebuilding costs while insurance claims are processed.
Rebecca Franklin, chief deputy director of the California Housing Finance Agency, said many families have not made mortgage payments since the fires began and have been in forbearance for a year.
Since launching in June 2025, the CalAssist Mortgage Fund has distributed $6.5 million to 793 recipients affected by recent disasters, primarily survivors of the Palisades and Eaton fires.
Expanded Income Eligibility
Income limits have also increased to broaden access. In Los Angeles County, households earning up to $281,400 annually now qualify, reflecting a $70,000 increase from the prior threshold. Income caps vary by county.
The program provides direct relief to homeowners whose primary residences were destroyed or rendered uninhabitable by qualifying disasters.
Altadena resident Sonia Linares said the assistance eased significant stress during an overwhelming time. Aurora Barboza Flores described the additional payments as a major relief for displaced families facing steep rebuilding costs.
Applications are free, funds are paid directly to mortgage servicers and do not require repayment.
Federal Aid Dispute and State Rebuilding Fund
The announcement comes amid ongoing tension between California and the Trump administration over federal disaster aid.
Newsom traveled to Washington in December to advocate for approval of a disaster supplemental package. According to the governor’s office, this marks the fourth funding request since February.
California is also developing a proposed state-backed Rebuilding Finance Fund aimed at increasing access to construction loans and closing the gap between insurance payouts and total rebuilding costs.
Federal funding, if approved, would support rebuilding schools, homes and critical infrastructure, assist small businesses and restore damaged water systems.
State officials said California will continue supporting disaster survivors but emphasized that long-term recovery requires federal partnership.
