Up to $300,000 in Forgivable Loans Help Households Living in Qualifying Flood Areas Purchase Homes in Safer, More Resilient Locations
California – January 28, 2026 – The ReCoverCA Homebuyer Assistance (HBA) Program continues to provide up to $300,000 in forgivable loans to help Californians who were renting in designated flood- affected areas during the 2023 or 2024 floods, purchase homes in safer, more resilient communities. Effective January 12, 2026, applicants are no longer required to provide documentation of direct flood impact, making it easier for more households to apply. Applicants must still have rented in a qualifying disaster area at the time of the flood event.
The financial assistance is offered as a Second Mortgage Loan, forgiven after five years of continued ownership and occupancy. Funds may be applied toward the down payment and closing costs, helping families bridge the gap between a First Mortgage Loan and the purchase price of an eligible home.
Designated Qualifying Disaster Areas include:
2023 Floods: Hoopa Valley Tribe (Humboldt County, ZIP 95546), Monterey, San Benito, Santa Cruz, Tulare, and Tuolumne Counties
2024 Floods: San Diego County
Eligibility highlights include:
Household income capped at 80% of Area Median Income (AMI)
First-time homebuyer status (no homeownership in past 3 years, with limited exceptions)
Home purchased must be in California, outside a FEMA-designated Special Flood Hazard Area
CalFire-designated High/Very High Fire Hazard Severity Zones
The ReCoverCA HBA Program is administered by the California Department of Housing and Community Development, funded by HUD, and managed by the Golden State Finance Authority (GSFA). Since its launch in June 2024, the program has helped more than 100 families become homeowners. For full program policies, eligibility, and application information, visit: www.gsfahome.org/recoverca-hba
About Golden State Finance Authority (GSFA)
GSFA is a local government entity and public agency, established in 1993, with a mission to provide affordable housing finance programs that support homeownership and strengthen California communities. GSFA has helped more than 87,000 individuals and families purchase homes, providing over $683.3 million in down payment assistance.
For more information, contact:
Carolyn Sunseri
(855) 740-8422
[email protected]
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