California Gov. Gavin Newsom has unveiled a $125 million assistance package aimed at helping homeowners whose properties were damaged or destroyed by recent natural disasters, including wildfires. The proposal, announced Wednesday, seeks to prevent affected residents from facing foreclosure as they work to recover.
Targeting Homeowners in Crisis
The initiative focuses on homeowners who suffered severe losses due to disasters, ensuring they receive financial aid to stabilize their housing situation. In addition to direct mortgage assistance, the funding would support an existing counseling program designed to help survivors navigate recovery options and access available resources.
According to Newsom’s office, the relief package will be financed through existing mortgage settlement funds and will not impact California’s proposed 2025-26 state budget.
“As families rebuild their lives after these devastating events, they shouldn’t have to worry about losing their homes,” Newsom said in a statement. “This program is designed to ease that burden and give them more time to recover.”
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Who Qualifies for Assistance?
The plan would provide mortgage relief to those impacted by natural disasters since 2023, including the Park Fire, Franklin Fire, and the recent Palisades and Eaton Fires. The California Housing Finance Agency (CalHFA) will oversee the program, distributing over $100 million in direct mortgage aid, while $25 million will be allocated to expand a counseling service that offers guidance on FEMA assistance and other recovery programs.
The proposal is set to be reviewed by CalHFA at its next meeting on Feb. 20. If approved, additional details on eligibility and application procedures will be announced.
Rising Insurance Challenges
Even as Newsom pushes for homeowner relief, insurance concerns continue to loom large. State Farm General, California’s biggest insurer, recently requested a 22% rate hike, citing severe financial strain following destructive wildfires in Los Angeles County.
However, California Insurance Commissioner Ricardo Lara rejected the request and has called for discussions with company officials regarding their financial standing.
State Farm previously sought substantial rate increases in June, proposing a 30% hike for homeowners, 36% for condo owners, and 52% for renters. That request remains under review.
Since 2023, the company has also halted new applications for property insurance in California, a move that has been mirrored by other insurers, leaving many residents struggling to secure coverage.
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