Wednesday, June 25, 2025

Harabedian’s Wildfire Recovery Bills Advance to Senate Appropriations

Two wildfire recovery bills to help California residents affected by natural disasters

Two wildfire recovery bills authored by Assemblymember John Harabedian (D-Pasadena) advanced this week, moving out of the Senate Judiciary Committee and heading to the Senate Appropriations Committee for consideration.

The bills, AB 238 and AB 493, are part of Harabedian’s legislative package to provide financial relief and long-term protections for Californians affected by natural disasters, including recent wildfires in Los Angeles County.

AB 238, known as the Mortgage Forbearance Act, would allow wildfire survivors to pause mortgage payments without penalties, foreclosure threats, or credit damage. The measure provides a 90-day forbearance period with the possibility of extending up to one year. It also requires lenders to follow clear guidelines and offer timely responses to homeowners during the recovery process.

AB 493, the Disaster Interest Accrual Act, would ensure that homeowners, rather than banks, receive interest earned on disaster-related insurance payouts held in escrow. The bill mandates a minimum annual interest rate of 2% and prohibits financial institutions from reducing that rate through fees, aiming to help survivors retain more of their entitled recovery funds.

Harabedian, who represents California’s 41st Assembly District which includes Pasadena, said the legislation is designed to help residents rebuild and recover after devastating losses. His district includes Pasadena, Altadena, La Cañada Flintridge, and several other San Gabriel Valley and Inland Empire communities.

Both measures now await review in the Senate Appropriations Committee.