(Photo – ABBF)
A new rebuilding assistance program designed to help Eaton Fire survivors overcome funding shortfalls is launching in Altadena with a $4 million investment from the Altadena Builds Back Foundation.
By News Desk
The funding will support the Rebuild Gap Program, administered by the Altadena Land Initiatives Corporation, a nonprofit created by Eaton Fire survivors and longtime Altadena residents. The program offers zero-interest construction gap loans to homeowners whose insurance proceeds and other available funding do not cover the full cost of rebuilding.
Borrowers will not be required to make loan payments until they receive a settlement from Southern California Edison, refinance their property or sell their home. Financing is available only to homeowners who use builders vetted by the nonprofit, which also provides guidance throughout the insurance and construction process.
The program launches more than 16 months after the Eaton Fire, when many displaced residents continue to face steep rebuilding costs. According to the Altadena Land Initiatives Corporation, insurance proceeds and other recovery assistance often leave homeowners with funding gaps covering 40% to 50% of reconstruction costs, forcing some families to take on additional debt, sell their properties or abandon rebuilding plans.
The announcement comes as many fire survivors continue to face financial challenges. According to the latest Department of Angels survey, nearly half of respondents reported using a significant portion of their savings since the fire, while more than 40% said they had taken on debt.
The Altadena Land Initiatives Corporation is currently reviewing applicants from an existing waitlist based on referrals from disaster case managers and nonprofit organizations, including Foothill Catalog Foundation, San Gabriel Valley Habitat for Humanity, The Wiley Center, HPP Cares and The Change Reaction. Homeowners interested in the program may also contact the organization to determine their eligibility.
Ursula Hyman, co-founder of the Altadena Land Initiatives Corporation, said the goal is to help residents rebuild rather than leave the community because of financial constraints.
Foundation officials said the investment represents what they describe as the first philanthropic effort to fund zero-interest construction gap loans as part of a disaster recovery strategy. Jennifer DeVoll, executive director of the Altadena Builds Back Foundation, said the loan structure is intended to stretch available funding to assist more homeowners.
The investment was made in partnership with philanthropists Molly Munger and Stephen English.
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