We are pleased to announce that GSFA has been awarded a $28 million grant from the California Department of Housing and Community Development (HCD) to support individuals and families in California impacted by the devastating wildfires and other declared disasters in 2018 and 2020.
With the grant award, GSFA will administer the ReCoverCA Homebuyer Assistance (DR-HBA) Program to enable low- and moderate-income residents (homeowners or renters) of the Most Impacted and Distressed (MID) California counties to relocate outside of high fire zone areas. The Program will provide homeownership assistance in the form of a forgivable loan, up to $350,000 per qualifying household. The homebuyer assistance is designed to cover the funding gap between the First Mortgage Loan amount and the purchase price of a home.
Soft-Launch and Lender Participation
The Program is scheduled for a soft-launch in early June 2024, when eligible households will be able to officially apply for the ReCoverCA homebuyer assistance through a few select Lenders. Within a short period of time necessary to get the Program up and running smoothly for both Lender and Applicant, we will open it up to all interested Lenders and provide guidance on how to participate.
We also provide Lender training and guidance regarding applicant eligibility and operational procedures, as we currently do for our other homebuyer assistance programs.
Funding and Goals for the Program
The creation and implementation of the DR-HBA Program centers on the goal to increase the level of homeownership among impacted disaster survivors and contribute to the affordability and sustainability of communities across the State. The grant provided by HCD is part of the State’s Disaster Recovery Action Plan for the 2018 and 2020 disasters and made possible through a Community Development Block Grant - Disaster Recovery grant from the United States Department of Housing and Urban Development (HUD).
Golden State Finance Authority (GSFA) serves as the DR-HBA Program Manager and performs end-to-end program management and implementation responsibilities for the Program, including but not limited to, intake, application, eligibility and affordability determination, monitoring and reporting, quality control, compliance review and marketing and outreach efforts. GSFA will also serve as liaison between the Applicant and all parties involved in the purchase process.
Stay Tuned for More Info
GSFA will formally announce via a Single-Family Bulletin when the complete program guidelines are available and published on the GSFA website.
We look forward to providing more information about the ReCoverCA Homebuyer Assistance Program in the very near future. Stay tuned!
