California's Mortgage Relief Program delivered one of the largest state-level homeowner grant efforts in the country, distributing grants of up to $80,000 per household to homeowners who fell behind on housing costs because of the pandemic. By the time the program wound down, it had assisted more than 37,000 households and distributed over $907 million, with an average grant of about $24,000 per family.

Where the Money Came From

California received roughly $1 billion from the federal Homeowner Assistance Fund (HAF), which was authorized by the American Rescue Plan Act in March 2021. The California Housing Finance Agency (CalHFA) administered the state's allocation, and the day-to-day operation of the program ran under the California Mortgage Relief brand, with NeighborWorks providing outreach and application support.

Unlike pandemic stimulus checks, these funds went directly to mortgage servicers, tax collectors, and other housing-related accounts on behalf of eligible homeowners. The grants did not need to be repaid.

What the Grants Could Cover

The program grew over time. At its broadest point after the February 2023 expansion, grants could cover:

Past-due mortgage payments — up to the full $80,000 cap across program cycles
Missed property taxes — up to $20,000 per household in property tax assistance
Partial claim or loan deferral balances taken during pandemic forbearance
Reverse mortgages with past-due property tax, insurance, or maintenance costs
PACE loans tied to home energy improvements

Homeowners could apply multiple times if new arrears built up after an initial grant, up to the total household cap. This feature was critical for families who continued struggling with income loss even after initial relief.

Who Qualified

Eligibility rules changed over the program's life to reach more households. Toward the end of the program, the main requirements were:

California homeowner with an eligible primary residence
Property of up to four units, including condos, manufactured homes on permanent foundations, ADUs, and small multifamily
Household income not more than 150% of the area median income for the county
Missed at least two mortgage payments or at least one property tax payment before a specified cutoff (originally March 1, 2023)
Documented financial hardship tied to the pandemic, including job loss, reduced hours, increased medical expenses, or childcare costs

Early versions of the program required homeowners to be deeper in delinquency, but the rules relaxed to allow families to apply earlier in their hardship rather than waiting until they were nearly in foreclosure.

The 2023 Expansion

In February 2023, California significantly broadened the program. Key changes included:

Raising the per-household cap to $80,000 across all grant categories combined
Adding property tax assistance as a stand-alone option for homeowners without mortgages
Allowing repeat applications up to the cap
Broadening eligible property types to include ADUs, manufactured homes, and small multifamily
Expanding coverage to include COVID-related partial claims and loan deferrals

The expansion was designed to reach homeowners who owned their homes outright but were at risk of losing them to property tax delinquency, a group that earlier versions of the program had largely missed.

How to Apply

Homeowners applied through camortgagerelief.org, which hosted a guided online application and offered live chat support. A toll-free call center provided phone-based help. Applicants had to upload:

Mortgage statements or property tax bills showing delinquency
Recent pay stubs or tax returns for income verification
A hardship explanation tied to COVID
Identification and proof of owner-occupancy

Case managers reviewed applications, and when approved, payments went directly to mortgage servicers or county tax collectors. Homeowners typically saw their accounts brought current within a few weeks of approval.

Program Impact

By distributing over $907 million to more than 37,000 households, the California Mortgage Relief Program prevented tens of thousands of potential foreclosures statewide. The average grant of $24,000 reflected the fact that most applicants had built up significant arrears during the pandemic, often equivalent to a year or more of missed payments. A smaller number of applicants hit the full $80,000 cap after multiple rounds of assistance.

Data from the program showed that grants reached a diverse set of Californians, with meaningful shares going to low- and moderate-income households, communities of color, and homeowners in both urban and rural counties.

Current Status

California's pandemic-era mortgage relief grant program is no longer accepting new applications. Remaining funds moved into other efforts, including legal aid for homeowners still navigating the aftermath of missed payments, and CalHFA's CalAssist Mortgage Fund, a newer disaster-specific relief effort funded from the National Mortgage Settlement for families affected by California wildfires and other declared disasters.

Where to Turn Now

Homeowners still facing mortgage trouble in California should contact their servicer directly to request loss mitigation, reach out to a HUD-approved housing counselor for free advice, and check CalHFA's current program offerings. The pandemic-era grant program has closed, but the counseling and legal aid infrastructure built during its run remains in place and continues to help homeowners protect their homes.

California Homeowners Can Get COVID Relief Grants Up to $80,000