Thursday, February 26, 2026

Wildfire Recovery Funds Could Put $350,000 Toward Home Purchases for Pasadena, Altadena Residents

[Courtesy of Golden State Finance Authority via Facebook]

A federal program offers forgivable loans to LA County households who lived in fire hazard zones during the 2018 wildfires

Residents of Pasadena and Altadena who were living in the foothill neighborhoods that sit within designated fire hazard zones in 2018 may qualify for up to $350,000 in homebuyer assistance — money that never has to be paid back.

The ReCoverCA Homebuyer Assistance Program, funded by the U.S. Department of Housing and Urban Development and administered by Golden State Finance Authority, provides forgivable loans to low- and moderate-income households in Los Angeles County who lived in High or Very High Fire Hazard Severity Zones during the 2018 California wildfires. The zero-interest loans carry no monthly payments and are forgiven entirely after five years of ownership and occupancy. The program does not cover the January 2025 Eaton Fire.

Los Angeles County is one of four qualifying counties, alongside Butte, Lake, and Shasta. The 2018 Woolsey Fire, which burned nearly 97,000 acres across Los Angeles and Ventura counties, destroyed 1,643 structures and killed three people, was the qualifying disaster for LA County under the program.

Both Pasadena and Altadena contain areas classified as High or Very High Fire Hazard Severity Zones — designations concentrated along the foothill edges closest to the Angeles National Forest. Residents who rented or owned homes in those zones during the 2018 wildfire period are eligible, regardless of whether the fire itself reached their property. Applicants are not required to show direct impact from the disaster, according to the GSFA press release announcing the program.

“Up to $350,000 in assistance can be transformative for households who were living in high fire hazard areas and are seeking a path to stable homeownership,” said Carolyn Sunseri, GSFA marketing director. “Homeownership provides more than just a roof overhead — it creates stability, opportunity, and a foundation for long-term success.”

The assistance is structured as a deferred-payment second mortgage loan designed to cover the gap between what a household can afford in a primary mortgage and the purchase price of a home. Eligible properties must be located outside High or Very High Fire Hazard Severity Zones — meaning the program steers buyers toward areas with lower wildfire risk.

To qualify, applicants must earn at or below 80 percent of the Area Median Income based on household size. A minimum credit score of 640 is required, along with a maximum debt-to-income ratio of 45 percent. Applicants must also complete an eight-hour online homebuyer education course. There is no requirement to be a first-time homebuyer, according to GSFA.

The program is provided by the California Department of Housing and Community Development as part of California’s Disaster Recovery Action Plan. It is funded through a Community Development Block Grant — Disaster Recovery from HUD. GSFA, a public agency established in 1993, manages the program. The agency has helped more than 87,000 individuals and families purchase homes and has provided over $683.3 million in down payment assistance, according to its own figures.

Craig Ferguson, deputy director of GSFA, said the program addresses a reality many wildfire survivors face. “It is difficult for many families that lost their homes to wildfire to simply rebuild in the same location due to construction costs, fire insurance requirements and other factors,” Ferguson said at the time of the program’s launch in 2024. “ReCoverCA homebuyer assistance will be a big boost to help them start again with long-term housing and less fire risk going forward.”

The program launched in June 2024 with a $28 million grant from HCD. Applicants work through a network of approved ReCoverCA lenders listed on the GSFA website. CalFire’s Fire Hazard Severity Zone Viewer can help residents determine whether their 2018 address fell within a qualifying zone.

For program details, eligibility requirements, and application information, residents can visit www.gsfahome.org/recoverca-hba or call (855) 740-8422.

The money comes with one condition that doubles as its purpose: buy somewhere safer.