Felton roads are nearly deserted under a sepia sky Aug. 20, 2020 after evacuation orders for the CZU Lightning Complex Fire. (William Duncan — Santa Cruz Local file)

SANTA CRUZ >> Some Santa Cruz County residents affected by the CZU Lightning Complex Fire could receive up to $350,000 towards a new home. The goal of the program is to help residents affected by wildfires buy homes outside of areas at high risk of fires.

The ReCoverCA Homebuyer Assistance Program gives low-income households forgivable, zero-interest loans for a down payment and closing costs on homes outside of high-fire-risk areas. The money is available to residents in 10 California counties that were affected by wildfires in 2018, 2020 or both years.

Four years after the megafire, about a third of destroyed homes are being rebuilt, according to a Santa Cruz County Civil Grand Jury report. Many homeowners have struggled to receive permits for rebuilding. Other Santa Cruz Mountains residents have struggled to purchase and afford home insurance as rates jump due to fire risk. 

At the Aug. 27 meeting of the Santa Cruz County Board of Supervisors, a ReCoverCA administrator is set to give a presentation and answer supervisors’ questions about the program. 

Program details

The homebuyer assistance program is funded by the state and managed by Golden State Finance Authority, a public agency. 

Participating private lenders determine applicant eligibility and the size of the loan based on family size, the amount of the first mortgage and the new home’s price. The loan is a second mortgage forgiven after five years of home ownership.

The new home must be outside of Cal Fire high-fire-hazard zones.

High-risk fire areas in Santa Cruz County include parts of the San Lorenzo Valley, Live Oak, Aptos and the North Coast. Fire hazard severities are shown in yellow for moderate, orange for high and red for very-high. (Cal Fire)

Eligibility 

To be eligible for the loan, applicants must:

• Have lived in an eligible disaster area, including Butte, Lake, Los Angeles and Shasta counties in 2018 and Butte, Fresno, Los Angeles, Napa, Santa Cruz, Shasta, Siskiyou, Solano and Sonoma counties in 2020.
• Have lived in a Cal Fire high-fire-hazard area during that time.
• Have a credit score of at least 640.
• Not own any other property.

Households must be low-income as defined by the U.S. Department of of Housing and Urban Development, with an annual income:

• Up to $101,750 for an individual.
• Up to $116,250 for a family of two.
• Up to $130,750 for a family of three.
• Up to $145,300 for a family of four.

For more information, call 855-740-8422 or email [email protected]. To apply for assistance, contact one of three participating lenders in Santa Cruz County:

• CrossCountry Mortgage
  • 9 Seascape Village, Aptos. 831-332-0720
  • 4145 Clares St., Suite F, 2nd Floor, Capitola. 831-435-9197
  • 133 Mission St., Suite 210, Santa Cruz. 650-888-2333
• Franklin Loan Center
  • 125 Mission St., Santa Cruz. 760-779-8100
• Guild Mortgage
  • 1500 41st Ave., Ste. 100, Capitola. 831-476-1624

Read more

• How to find home insurance in Santa Cruz County — May 17, 2024
• Roads, power, disaster prep are top priorities for San Lorenzo Valley voters — June 27, 2024
• Compost toilet program to launch in San Lorenzo Valley — March 29, 2024

Questions or comments? Email [email protected]. Santa Cruz Local is supported by members, major donors, sponsors and grants for the general support of our newsroom. Our news judgments are made independently and not on the basis of donor support. Learn more about Santa Cruz Local and how we are funded.