More than a year after the deadliest wildfires in Los Angeles history killed 31 people and destroyed over 16,000 structures, California Gov. Gavin Newsom is expanding mortgage relief for survivors — quadrupling the maximum payout and extending coverage from three months to a full year.
But for thousands of displaced families still living in temporary housing, the bigger question remains: What good is mortgage relief when you can’t actually rebuild your home?
On Feb. 12, Newsom announced a major expansion of the state’s CalAssist Mortgage Fund, increasing the maximum grant from $20,000 to $100,000 per household and extending coverage from three months of mortgage payments to 12. The grants are issued directly to loan servicers and never have to be repaid. Applications are free, and homeowners with a combined household income below $282,000 are eligible if their primary residence was severely damaged or destroyed by qualifying disasters between Jan. 1, 2023, and Jan. 8, 2025.
The program is backed by a $125 million state package, of which more than $100 million is earmarked for direct relief. As of early January, the state had paid out roughly $6 million to 732 households — the vast majority of them Palisades and Eaton fire survivors. More than 160 lending institutions have also committed to providing additional forbearance beyond the 12 months required under California law, streamlining the process so borrowers can request extensions verbally without paperwork.
Aurora Barboza Flores, an Altadena resident who learned she would receive nine additional mortgage payments under the expanded program, called it “a huge relief” in a statement provided by the governor’s office. “The cost is really our biggest stressor. It’s what we carry on our shoulders, what we go to sleep with, what we wake up with.”
The mortgage relief, however, does little to address the bigger problem for wildfire survivors: Most can’t afford to rebuild, and even those who can are often stuck in a permitting mess.
As of early February 2026, just 28 homes had been fully rebuilt across Los Angeles County — out of more than 13,000 destroyed (1). Roughly 900 more are under construction, and about 3,000 rebuilding permits have been issued, but that still represents a fraction of what’s needed. In Malibu, where roughly 600 homes were destroyed, the city had approved only about 2% of rebuild applications as of late 2025 (2). The city’s volunteer fire-rebuild ambassador resigned in October, calling the process “untenable” (3).
About 70% of displaced residents had not returned to their homes as of October 2025, according to a survey by the Department of Angels, a nonprofit advocacy group. Four in 10 fire survivors had taken on debt, and nearly half had burned through much of their savings (4).
Joy Chen, executive director of the Eaton Fire Survivors Network — a group representing roughly 10,000 survivors — told the USA Today Network that the mortgage relief is welcome but doesn’t touch the real barrier.
“If you ask people impacted by the fires what’s the biggest thing holding them up, it’s not permitting,” Chen said. “The number one barrier right now is money” (5).
For many homeowners, the math simply doesn’t work. Construction costs in fire zones have soared — actuarial estimates put the average rebuild at $574,000 in Altadena and $955,000 in the Palisades — and those figures don’t account for building-code upgrades or the demand surge that follows a major disaster (6). Insurance payouts have frequently fallen far short. Fewer than 20% of homeowners who suffered total losses had closed out their insurance claims by December 2025 (7).
In a report by CNN, tech worker Chris Hill described buying his Altadena dream home just two years before it burned down. His insurance covered only a fraction of the rebuild cost, and he still owes roughly $1.5 million on the mortgage for what is now an empty lot. He’s now considering a manufactured home instead of a full rebuild (8).
And several other forces are making things worse. Tariffs on Canadian softwood lumber — which supplies roughly a quarter of total U.S. demand — have jumped from 14.5% to 34.5%, pushing material costs higher. Immigration enforcement actions at construction sites have rattled the labor market; CNN reported that one Altadena site lost half its crew after an ICE visit, even though no arrests were made. And State Farm, California’s largest home insurer, is under investigation by both the state and county over its handling of wildfire claims, even as it seeks an additional $500 million rate increase (9).
“When people are struggling every week to try to figure out a place for their families to live, to keep a roof overhead, there’s no way to start rebuilding,” Chen told USA Today. “Having housing stability is a necessary precursor to being able to rebuild.”
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The slow pace of rebuilding has turned into a political fight. On Jan. 23, Trump signed an executive order titled “Addressing State and Local Failures to Rebuild Los Angeles After Wildfire Disasters,” accusing Newsom and LA Mayor Karen Bass of obstructing recovery with “duplicative” and “obstructive” permitting rules. The order directs FEMA and the SBA to draft regulations allowing builders to self-certify compliance with safety codes and bypass local permits if approvals take longer than 60 days.
SBA Administrator Kelly Loeffler called California’s permitting backlog a “nightmare” and said the order would let survivors “bypass the red tape” that has stalled reconstruction.
Newsom pushed back immediately, calling the order “useless” and accusing Trump of withholding the $33.9 billion in federal disaster aid the state has requested — a figure revised downward from an earlier $39 billion ask. His office pointed out that local permitting timelines have roughly doubled in speed since the fires, with rebuilding permits now issued at a rate nearly three times faster than comparable permits in the five years before the disaster.
“Instead of finally sending to Congress the federal relief Los Angeles needs to rebuild from last year’s firestorms, Donald Trump continues to live in fantasy land,” Newsom posted on social media.
Legal experts have also questioned whether the federal government has the authority to override local building codes and land-use laws — a power traditionally reserved for state and local governments.
For homeowners navigating the recovery, here’s what’s currently available:
CalAssist Mortgage Fund: Eligible homeowners can apply for up to 12 months of mortgage payments (up to $100,000) at no cost. Funds go directly to loan servicers and do not need to be repaid. Apply through the California Housing Finance Agency (CalHFA).
Mortgage forbearance: Under California law (AB 238), borrowers can pause mortgage payments for up to 12 months without late fees, foreclosure proceedings, or credit penalties. More than 160 lenders have committed to offering additional forbearance beyond the statutory minimum.
SBA disaster loans: The SBA has approved roughly $3.2 billion in disaster loans for Los Angeles, though less than 25% of those funds have been drawn down due to permitting delays.
Southern California Edison claims: Edison has acknowledged its equipment was “likely” associated with the Eaton Fire’s ignition. The Eaton Fire Survivors Network is urging the utility to provide up to $200,000 per household in temporary housing advances.
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We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
The Daily Economy (1); Westside Current (2); The Malibu Times (3); Ohio University (4); USA Today (5); Milliman (6); Insurance Journal (7); CNN (8); Los Angeles Times (9)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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