LA County will loan homeowners nearly $6M to avoid foreclosure

Funds will be pulled from affordable housing trust

Supervisors Janice Hahn and Hilda Solis
Supervisors Janice Hahn and Hilda Solis

Los Angeles County will spend $5.5 million to help struggling homeowners avoid foreclosures.

The Board of Supervisors voted to provide $4 million for deferred and forgivable loans, and $1.5 million to foreclosure prevention counselors to help homeowners negotiate loan terms with lenders, according to the Los Angeles Daily News.

The program is designed to target communities with high levels of foreclosures, according to the Daily News. Supervisors Hilda Solis and Janice Hahn co-authored the motion.

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The money will be pulled from the county’s Affordable Housing Trust Fund, which is for affordable housing development.

Local, state, and even some federal moratoriums have spared homeowners from foreclosure since the beginning of the coronavirus pandemic. But lawmakers haven’t created a permanent solution to what could be a massive problem nationwide once those moratoriums expire.

Earlier this month, California state lawmakers passed a stopgap measure barring rental evictions and instituting some foreclosure protections for multifamily landlords through the end of January. Lawmakers plan to address the issue when they return to session early next year.

L.A. County launched a $100 million rental assistance program in August meant to help low-income renters and those who lost their jobs because of the pandemic. [LADN]Dennis Lynch