LAKE COUNTY, Calif. — Applications are now open for a new program to help Lake County households impacted by the 2018 wildland fires purchase homes outside of high fire areas.
The Golden State Finance Authority has launched the ReCoverCA Homebuyer Assistance Program.
It’s funded by a $28 million grant from the California Department of Housing and Community Development that’s designed to help low- and moderate-income residents — homeowners or renters — of the most impacted and distressed California counties to relocate outside of high fire hazard severity zones.
It was created with a goal centered on increasing the level of homeownership among impacted disaster survivors and contributing to the affordability and sustainability of communities across the state.
Low-to-moderate income homeowners and renters whose primary residence was located in high or very high fire hazard severity zones in Lake County in 2018 will qualify for the program.
Qualifying households will receive assistance 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.
Lake County qualified due to the 2018 Mendocino Complex — consisting of the Ranch and River fires — which at one point led to much of Lake County’s population being evacuated. The complex burned 459,123 acres before it was fully contained, and it remains the third-largest wildland fire in California history.
In addition to Lake County, qualifying disaster areas in 2018 were Butte, Los Angeles and Shasta counties.
Another group of counties qualified for the grant as disaster areas for 2020: Butte, Fresno, Los Angeles, Napa, Santa Cruz, Shasta, Siskiyou, Solano and Sonoma.
“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.”
Carolyn Sunseri, a spokesperson for the program, said to qualify for the program, families don’t have to have lost their homes, sustained damage or even been evacuated. Rather, they have to have been “impacted” by living or renting in a high or very high fire severity zone.
The program’s guidelines also require income qualification and that they purchase a home that is not in a high fire area.
In Lake County, such areas are limited, Sunseri acknowledged.
Cal Fire’s fire severity map shows that areas in and around downtown Kelseyville, parts of the Northshore including portions of Clearlake Oaks, Lucerne and Nice, Upper Lake and and Blue Lakes, and portions of Lakeport and Clearlake are not in the high fire area.
Sunseri said those who successfully apply can purchase a home in any part of the state that’s not in a fire hazard severity zone.
She explained that applicants need to work with an approved lender. A list of such lenders is found on the ReCover website.
Once they are in contact with a lender, the lender goes through a process to make sure they are qualified in eligibility requirements. “They qualify them for a mortgage loan based on their current financial situation,” and what they can afford in a monthly payment, Sunseri said.
However, the assistance is beyond and on top of that, in order to help them purchase a home that’s either larger or in a different location, she said.
Once the determination is made for the loan size, then the home buyer loan kicks in on top of that amount, Sunseri explained.
The lender has to make the determination of how much of the $350,000 they will qualify for, which she said will give them a range of homes to consider for purchase.
She said the $350,000 maximum is reduced in a few cases, including due to the sale price of the home or if the applicant has a duplication of benefits, such as receiving some kind of financial assistance specifically for housing that they’ve not used up and which the state would want to be put toward their home purchase.
The total amount of assistance also will be reduced based on liquid assets. Sunseri said if a household has more than $100,000 in liquid assets, then the portion that’s over $100,000 would reduce the $350,000 piece.
However, she said, most people are going to qualify for the full $350,000 in assistance.
“It is designed to fill the gap between what they can afford in a monthly mortgage payment and what a home payment would really be for them as a family,” and to get them out of the high fire zone and into a comfortable situation, she said.
For low- and moderate-income families, “it can have a huge impact,” and avoid putting them in a monthly payment they can’t afford, Sunseri explained.
The program won’t expire for two or three years, although Sunseri is confident the $28 million will be expended by then.
That amount will cover 80 forgivable loans of $350,000. In the program’s first week, it had five applications across all counties, Sunseri said.
“I personally see the state renewing the funding for this,” Sunseri said, explaining that it’s believed the program will make an impact.
Sunseri said she plans to start hosting outreach events such as town halls in Lake County beginning in July. There also will be on-demand educational workshops online.
Complete program policies, eligibility requirements, interest rates, APRs, and loan applications are available through a network of ReCoverCA approved lenders, published on the Golden State Finance Authority website, www.gsfahome.org.
Email Elizabeth Larson at This email address is being protected from spambots. You need JavaScript enabled to view it.. Follow her on Twitter, @ERLarson, or Lake County News, @LakeCoNews.
Program aims to help Lake County residents impacted by 2018 wildfires purchase homes
- Elizabeth Larson
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