Governor Gavin Newsom launched a $100 million state program to help disaster survivors close the gap between insurance payouts and the cost of rebuilding.
The Disaster Rebuilding Assistance Program was developed in response to feedback from survivors of the Eaton and Palisades fires and was funded as part of the state budget. It was first announced during the Governor's State of the State address earlier this year.
The program offers interest rate buydowns to reduce borrower interest costs and loan-loss guarantees to increase borrower access to funds by allowing lenders to lend more expansively with lower risk. Homeowners interested in exploring eligibility can visit the program's webpage and meet with participating construction lenders.
The announcement comes days after Gov. Newsom signed Assembly Bills 1842 and 1847, which made permanent mortgage forbearance protections for disaster-affected homeowners. The legislation doubles the mortgage forbearance window available for Los Angeles fire survivors, from 12 months to 24 months, and requires servicers to offer borrowers the option to defer repayment of missed payments until the end of the loan.
Separately, the CalAssist Mortgage Fund has awarded $54 million in mortgage relief to 1,575 households as of Sept. 14, with 76% of the funds going to homes affected by the Eaton Fire. The state has also issued 8,450 building permits through local departments as of this week.