After instituting multiple programs to help renters, the Los Angeles County Board of Supervisors has agreed to spend $5.5 million to help prevent foreclosures and connect struggling homeowners with mortgage assistance.
Supervisors Janice Hahn and Hilda Solis co-authored a motion calling for $4 million in funding for deferred and forgivable homeowner loans and $1.5 million for foreclosure prevention counselors who can help homeowners modify loan terms with banks.
“We have been able to make progress keeping renters in L.A. County in their homes during this crisis by implementing an eviction moratorium and putting $100 million toward rent relief for families struggling to pay rent,’’ Hahn said. “But homeowners are struggling too and without a concerted effort on the county’s part, we may be facing a wave of oncoming foreclosures and homelessness.’’
The program will target communities that have had high levels of foreclosures, according to the county. Based on the board’s vote, the money will be reallocated from the county’s Affordable Housing Trust Fund.
“Housing is a human right and as a result of the economic fallout of this COVID-19 crisis, many impacted individuals and families are on the brink of experiencing homelessness through no fault of their own,’’ Solis said. “In the midst of this unprecedented global pandemic, many workers in L.A. County are unemployed indefinitely, and one of the critical steps we can take right now is to keep them in their homes.’’
The board voted unanimously to have the Department of Consumer and Business Affairs expand its foreclosure prevention programs and establish the new mortgage relief program.