On June 12, 2025, California will begin offering grants of up to $20,000 to qualifying homeowners whose homes were destroyed or left uninhabitable in various fires, floods, and other disasters that have occurred from January 1, 2023, to January 8, 2025 (click here for a list of eligible disasters).
Under the CalAssist Mortgage Fund program, qualified homeowners can receive grants for three months of mortgage payments, up to a $20,000 maximum, that would be paid directly to participating mortgage servicers. These grants do not have to be repaid, and we believe they would qualify for the IRC §139 disaster relief exclusion on both the federal and California returns.
To qualify, a taxpayer’s primary residence must have been destroyed by a qualifying disaster and the taxpayer’s household income (essentially gross income for all persons on the mortgage or deed) must not exceed the program income limits, which are based on the county’s median income level.
The program is capped at $105 million and will be awarded on a first-come, first-served basis.
Additional information concerning the program is available at:
www.calassistmortgagefund.org/program-details#faq
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