Saratoga, California — State housing officials have launched a $100 million recovery financing initiative designed to bridge gaps between property insurance settlements and escalating reconstruction expenses for residents rebuilding after catastrophic wildfires, state leaders announced.
The Disaster Rebuilding Assistance Program, authorized through the state budget, introduces structured financial instruments to ease borrowing hurdles for affected homeowners. Through upfront interest rate buydowns, the state will reduce borrowing expenses for eligible families, while state-backed loan-loss guarantees will encourage participating private lenders to extend construction credit with reduced institutional risk.
The rollout arrives alongside newly signed statutes, Assembly Bills 1842 and 1847, which establish permanent legal safeguards against home foreclosures following major natural emergencies. The laws expand the statutory mortgage forbearance window from twelve to twenty-four months for disaster victims and require financial servicers to offer options deferring missed loan installments until loan maturity.
"For victims of wildfire and other natural disasters, the process of rebuilding their homes can be both daunting and expensive." — Tomiquia Moss, Secretary of the California Housing and Homelessness Agency