May 14, 2024 | Bulletin #24-03 |
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GSFA Receives $28 Million Grant Award from California Department of Housing and Community Development |
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Award will provide homebuyer assistance to 2018 and 2020
wildfire impacted households.
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Golden State Finance Authority (GSFA) has been awarded a $28 million grant from the California Department of Housing and Community Development (HCD) to support individuals and families in California impacted by the devastating wildfires and other declared disasters in 2018 and 2020.
With the grant award, GSFA will administer the ReCoverCA Homebuyer Assistance (DR-HBA) Program to enable low- and moderate-income residents (homeowners or renters) of the Most Impacted and Distressed (MID) California counties to relocate outside of high fire zone areas. The Program will provide homeownership assistance in the form of a forgivable loan, up to $350,000 per qualifying household. The homebuyer assistance is designed to cover the funding gap between the First Mortgage Loan amount and the purchase price of a home.
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“There are no words to describe the toll that the Camp Fire in 2018 had on our community, families, businesses, and the beautiful landscape of Butte County,” said Butte County Supervisor Doug Teeter. “Five years may seem like a lot of time to many people, but when your life has been hit by a tragedy like this, life does not return to normal. Everyone in Butte County and all the other counties affected by wildfire have had to adapt, change, recover and rebuild. This funding is going to go a long way to helping people establish long-term housing and continue to heal.”
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Low-to-moderate income homeowners and renters whose primary residence, at the time of the qualifying disasters in 2018 or 2020, was inside the mandatory evacuation zone or evacuation warning zones in an MID county will be eligible to apply for the DR-HBA Program.
Eligible MID counties are:
- 2018 - Butte, Lake, Los Angeles and Shasta Counties;
- 2020 – Butte, Fresno, Los Angeles, Napa, Santa Cruz, Shasta, Siskiyou, Solano and Sonoma Counties.
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“It is difficult for many families that lost their homes to wildfire to simply rebuild in the same location due to construction costs, fire insurance requirements and other factors. In fact, many families had to relocate temporarily, even obtaining new jobs in a different location,” said Craig Ferguson, Deputy Director of GSFA. “ReCoverCA homebuyer assistance will be a big boost to help them start again with long-term housing and less fire risk going forward. We are excited to be a part of such a positive recovery effort.”
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The creation and implementation of the DR-HBA Program centers on the goal to increase the level of homeownership among impacted disaster survivors and contribute to the affordability and sustainability of communities across the State. The grant provided by HCD is part of the State’s Disaster Recovery Action Plan for the 2018 and 2020 disasters and made possible through a Community Development Block Grant - Disaster Recovery grant from the United States Department of Housing and Urban Development (HUD).
The Program is scheduled to launch in early June 2024, when eligible households will be able to officially apply for the ReCoverCA homebuyer assistance. Complete program guidelines will also be made available in early June and published on the GSFA website www.gsfahome.org.
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© 2024 Golden State Finance Authority. All rights reserved.
For more information about this News Bulletin, contact Carolyn Sunseri, csunseri@rcrcnet.org | (855) 740-8422.
This news bulletin contains program highlights only and is not an offer for extension of credit nor a commitment to lend and is subject to change without notice. Complete program guidelines, loan applications, interest rates and annual percentage rates (APRs) will be made available through GSFA Participating Lenders after program launch.
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