New California Disaster Rebuilding Assistance Program to Help Keep Homeowners in Their Communities

WHAT YOU NEED TO KNOW

SACRAMENTO, Calif.--(BUSINESS WIRE)--Following Governor Gavin Newsom's announcement of the new Disaster Rebuilding Assistance Program, CalHFA, the state agency administering the program, released program details.

"Many families are still navigating the challenges and trauma that follow the loss of a home," said CalHFA Executive Director Tony Sertich. "The state is here to support their recovery and help them rebuild their homes and communities."

As more disaster survivors are transitioning from recovery to rebuilding, the Disaster Rebuilding Assistance Program offers financing tools, such as interest rate buydowns, which use upfront assistance to reduce borrower interest costs, and loan-loss guarantees, which increase borrower access by allowing lenders to lend more expansively with lower risk.

CalHFA worked with community organizations and lending partners to develop the Disaster Rebuilding Assistance Program as part of the next phase of the state’s comprehensive recovery effort. Using $100 million in state funding, the state can support a significantly larger amount in construction lending. CalHFA has also supported disaster survivors by covering mortgage payments during the early stages of recovery through the CalAssist Mortgage Fund.

CalHFA approves construction lending partners to participate in the program after they’ve completed an onboarding process. Disaster survivors will work directly with participating lenders to apply for a construction loan. The updated list of participating construction lenders can be found at the Disaster Rebuilding Assistance Program webpage. As more lenders sign up for the program, this list will be updated.

Interested construction lenders or CDFIs should visit the How to Apply to become a Disaster Rebuilding Assistance Program Lender page on the CalHFA website to review the requirements.

General eligibility includes the following, but homeowners who think they may be eligible should speak with a participating lender:

• Homeowner's primary residence was destroyed or damaged by a qualified disaster that occurred between 01/01/2023 and 01/08/2025, such as the 2025 Los Angeles fires.
• Homeowner owns the property now and lived there when the disaster happened.
• The program is designed to reach low- and moderate-income homeowners. Income limits vary by county and type of loan, so homeowners should contact a participating lender.
• Homeowner is planning to rebuild a single-family home, planned unit development, condo, 1- 4 unit property or a permanently affixed manufactured home. The rebuilt property must meet local zoning requirements.

Beginning the rebuilding process takes a lot of preparation and planning. Homeowners interested in exploring their construction loan options will find program information on the program's webpage, and should meet with a participating lender to understand the steps they'll need to take.

For more information, visit https://calhfa.ca.gov/homebuyer/programs/drap.htm

Administered through the California Housing Finance Agency (CalHFA), the Disaster Rebuilding Assistance Program offers financing tools designed to reduce the risk and cost of construction loans for low- and moderate-income homeowners, making rebuilding more accessible and affordable. For more information, visit CalHFA.ca.gov/homebuyer/programs/drap.htm.