SACRAMENTO, Calif. — A program that will provide $1 billion in mortgage relief grants to California homeowners can now be implemented after the U.S. Treasury Department approved the program, Monday.
Governor Gavin Newsom proposed the California Mortgage Relief Program to help an estimated 20,000 to 40,000 homeowners in the state struggling during the coronavirus pandemic.
Past due housing payments, up to $80,000 per household, will be covered by a state grant directly paid to the mortgage servicers' of qualifying homeowners.
Homeowners in California who wish to receive the assistance must be at or below 100% of their county's Area Median Income. Applicants for the grant must also own a single-family house, condo, or manufactured home and have faced a financial hardship deemed to be pandemic-related after January 1, 2020.
Funding for the program is being set aside from President Biden’s American Rescue Plan Act’s Homeowner Assistance Fund. The Mortgage Relief Program will be part of California’s Housing is Key program.
Governor Newsom expects the program to begin accepting applications in the coming weeks. Homeowners who qualify can apply at CaMortgageRelief.org. Until applications are being accepted, the website will provide eligibility and program information.
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