On AB-238 Mortgage forbearance: state of emergency: wildfire. (2025-2026)

Dear Assemblymembers [Valencia, Chen, Dixon, Fong, Krell, Rodriguez, Rubio, Schiavo, Soria]

We are writing to you on behalf of Youth Voices of Los Angeles, a political advocacy group dedicated to amplifying the voices of youth in our community and advocating for policies that reflect the interests of the youth. We strongly urge you to support Assembly Bill 238 (AB 238), a vital measure to provide mortgage forbearance to homeowners impacted by the recent Los Angeles wildfires. The significant financial toll that these fires have had on their victims.  This bill will protect residents who have been affected by the fires from the devastation of mortgage foreclosure during this crisis.

Home ownership in the Palisades and Altadena areas are at rates of over 75%, far above the state average of 55.8%.  Unexpectedly, from January 7th and 8th to the 31st the Palisades and Eaton fires wiped out over 27,000 acres of land and destroyed over 17,000 structures.  All of the residents of the areas destroyed by the Palisades and Eaton fires are still evacuated for an indefinite period of time and will have to live elsewhere for the coming months. Mortgage forbearance is a looming threat to affected homeowners.

Beyond the fires, homeowners problems are compounded by severe economic challenges. Nearly 30% of those affected are unable to find work because of evacuation orders, loss of their homes, or destruction of their businesses. California’s wildfire season is longer and more dangerous than ever, and damages from the 2024 fires alone are estimated at 1.5 billion dollars. This fire is forecasted to cause 250 billion dollars in damages. AB 238 will provide a lifeline to homeowners by allowing them to defer mortgage payments without incurring penalties or seeing their credit scores harmed. The threat of foreclosure looms over thousands of homeowners in this state, especially fire victims. Through this bill you can grant those constituents relief from being pushed out of their homes. You can provide immediate and powerful protection from mortgage payments through AB 238, ensuring families have the time and resources to recover.

California’s residents–especially those affected by the fires–are already facing the devastating aftermath of the fires. Forcing them to continue making mortgage payments while they are displaced or unable to work could only drive families to financial ruin. With an estimated 1 in 5 households in California already living paycheck to paycheck, many are teetering on the edge of financial collapse. By allowing homeowners to temporarily defer payments, the state is preventing unnecessary suffering to families in sparse financial circumstances. The bill is more than a safety net; it's a moral responsibility to our fellow Californians to help them rebuild their lives without the threat of mortgage payments in the wake of this disaster.

We urge you to take immediate action and vote in favor of AB 238. It’s time to stand with the victims of the LA fires and ensure that they have the financial support they need to rebuild and recover. By supporting this bill, you can ensure that devastation caused by these fires doesn’t translate into a lifelong burden for the affected homeowners.

Thank you for your consideration and leadership on this important issue.

Sincerely,

Youth Voices of Los Angeles