Harabedian Applauds Governor’s Action, Highlights Laws Protecting Wildfire Survivors

John Harabedian (Photo – Office of John Harabedian)

Assemblymember John Harabedian (D-Pasadena) is highlighting California’s ongoing efforts to strengthen protections for homeowners recovering from wildfires following Governor Gavin Newsom’s announcement this week outlining mortgage lenders’ responsibilities to Los Angeles wildfire survivors.

By News Desk

The governor’s announcement emphasized that mortgage lenders should provide homeowners with fair and timely access to insurance proceeds needed to rebuild after wildfire damage. Harabedian said the announcement aligns with legislative efforts to reduce financial barriers facing disaster survivors.

Among those measures is AB 493 (2024), authored by Harabedian, which requires mortgage lenders holding insurance proceeds during the rebuilding process to pay homeowners at least 2% annual simple interest on those funds. The law is intended to ensure homeowners benefit from interest earned on insurance proceeds while they await reconstruction.

Harabedian also authored AB 238, which provides mortgage forbearance protections for wildfire survivors, helping homeowners remain in their homes while navigating the rebuilding process.

In addition, AB 1847 seeks to address other obstacles that can delay or complicate rebuilding after catastrophic wildfires, building on the state’s broader disaster recovery efforts.

“Wildfire survivors deserve a recovery process that works for them,” Harabedian said. “The Governor’s announcement reinforces an important principle: every institution involved in disaster recovery has a responsibility to help families rebuild. Through legislation like AB 493, AB 238, and AB 1847, we’ve worked to strengthen protections for homeowners, but we must continue ensuring those protections translate into meaningful relief for the families who need it most.”

Harabedian said he will continue working with the governor, state agencies, local leaders, and community partners to remove barriers to recovery and help ensure wildfire survivors receive the support they need to rebuild.