California Gov. Gavin Newsom announces mortgage relief program for wildfire victims

Lia Russell, The Sacramento Bee on Feb 19, 2025

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SACRAMENTO, Calif. — Gov. Gavin Newsom wants to use $125 million in settlement funds from the 2008 mortgage crisis to pay for people who have lost their homes in recent wildfires and face the threat of foreclosure.

Newsom announced Wednesday that he was proposing the creation of a new program within the California Housing Finance Agency to pay mortgage bills for people whose homes were severely damaged or destroyed in declared disasters since Jan. 1, 2023, and extend an existing program that helps homeowners access recovery funds and other resources.

“As survivors heal from the trauma of recent disasters, the threat of foreclosure should be the last thing on their minds,” Newsom said in a statement. “This disaster mortgage relief program would help lift this burden and give families more time to focus on recovery.”

The governor said he would introduce the package at the Thursday housing finance agency meeting. He said that upon approval he would announce further details about eligibility. The program would not require more money be added to the state budget. Some $100 million would be set aside for the new mortgage relief program, and $25 million would be available for the mortgage counseling program.

Newsom’s directive is one of a handful of steps the state has taken in the month since wildfires broke out in the Los Angeles area.

The fires, which claimed 29 lives and destroyed thousands of homes, are believed to be the costliest in state history. The administration delayed tax filings for wildfire victims until October 15, which could further complicate the state’s financial plans as it faces a projected deficit in the coming years.

Newsom’s administration also suspended environmental permitting rules to expedite home rebuilding efforts and announced a private-sector effort led by philanthropist Casey Wasserman to raise money for the recovery effort in time for Los Angeles to host the 2028 Olympics.

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