Newsom to propose fund to help California wildfire victims rebuild
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SACRAMENTO — Gov.Gavin Newsom will propose a new $100-million fund to help wildfire victims afford loans to rebuild their homes under a revised budget plan set to be released Thursday.
The Newsom administration estimates that thousands of victims of the Los Angeles wildfires cannot afford to rebuild, blaming a lack of access to affordable loans and a gap between insurance payouts and the cost to build again.“We have been on the ground in L.A.
since Day One of recovery from these fires, and we aren’t turning our backs now,” Newsom said in a statement.“This community deserves continued support to help them get back on their feet, and rebuild their homes and their lives.
“The new fund would be designed to cover loan-loss guarantee to lenders, in which the state would commit to paying back a percentage of a loan amount if a borrower defaults, in order to lower the risk for lenders and encourage them to award construction loans to borrowers who might not otherwise qualify or only be eligible for loans at high interest rates.The money would also be available for homeowners to buy down their interest rates during the construction period, according to Newsom’s office.
The Eaton and Palisades fires killed 31 people and destroyed over 16,000 structures in January 2025.A recent survey of the wildfire victims found that homeowners estimate they need more than $600,000 on average above their insurance payouts to rebuild their homes, according to a report from a wildfire recovery nonprofit called the Department of Angels.
The gap in Altadena was about $550,000, and between $1.19 million and $1.73 million in Pacific Palisades and Malibu.Under Newsom, California has also provided mortgage relief to more than a thousand wildfire survivors under CalAssist, a program that provides grants to eligible homeowners to cover mortgage payments for 12 months up to $100,000.The governor...