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Golden State Finance Authority (GSFA) launched the ReCoverCA Homebuyer Assistance (DR-HBA) Program today to support individuals and families in California impacted by the devastating wildfires and other declared disasters in 2018 and 2020.
The Program, managed by GSFA and funded by a $28 million grant from the California Department of Housing and Community Development (HCD) is designed to help low- and moderate-income residents (homeowners or renters) of the Most Impacted and Distressed (MID) California counties to relocate outside of high fire hazard severity zones. The homeownership assistance given to qualifying households is provided in the form of a forgivable loan, up to $350,000, to cover the funding gap between the First Mortgage Loan amount and the purchase price of a home.
“Rent increases and housing costs continue to be a challenge here, especially after the unprecedented fires of 2020. Financial assistance of this size can go a long way towards helping low-and-moderate income families secure long-term housing and re-establish roots in communities,” said Napa County Supervisor Anne Cottrell.
Low-to-moderate income homeowners and renters whose primary residence was located in high or very high fire hazard severity zones in an MID county at the time of the qualifying disasters in 2018 or 2020 will be eligible to apply for the DR-HBA Program. The 2018 Qualifying Disaster Areas are Butte, Lake, Los Angeles, and Shasta Counties. The 2020 Qualifying Disaster Areas are Butte, Fresno, Los Angeles, Napa, Santa Cruz, Shasta, Siskiyou, Solano, and Sonoma Counties.
“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.”
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).
Complete program policies, eligibility requirements, interest rates, APRs, and loan applications are available through a network of ReCoverCA approved lenders, published on the GSFA website, www.gsfahome.org.
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