Five months after the fire, on Calaveras in Altadena (File Photo – Melissa Michelson)
On Wednesday, September 3, Assemblymember John Harabedian (D-Pasadena) successfully advanced a key piece of wildfire recovery legislation, AB 238, the Mortgage Forbearance Act, off the Assembly Floor. The bill now heads to Governor Gavin Newsom’s desk for final consideration.
By News Desk
AB 238 provides critical financial relief to survivors of the devastating Los Angeles Fires by allowing them to pause mortgage payments for up to one year, without penalties, credit damage, or lump-sum repayment demands. The legislation is designed to ease the financial strain on homeowners forced to pay mortgages on damaged or destroyed properties while also covering the cost of temporary housing.
“For months since the fires, survivors have been forced to make two housing payments: one for their temporary rental accommodations and another mortgage payment for a house that either doesn’t exist anymore or is uninhabitable due to smoke and ash damage,” said Assemblymember Harabedian. “AB 238 will ease the financial burden that too many families are facing. I am hopeful the Governor will sign this legislation soon to provide essential relief to wildfire victims.”
The bill passed with an urgency clause and would take effect immediately upon the Governor’s signature. Governor Newsom has until October 12 to sign or veto the measure.
In the wake of the fires, Harabedian worked closely with the Governor’s office to initially secure 90-day mortgage forbearance commitments from nearly 300 lenders across California. AB 238 builds on that effort, establishing a longer-term safety net for impacted homeowners.
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