Washington, D.C. — U.S. Senators Michael Bennet (D-Colo.) and Adam Schiff (D-Calif.) introduced the Mortgage Relief for Disaster Survivors Act to help alleviate financial hardship for disaster survivors and help them rebuild their homes by providing mortgage relief. U.S. Representatives Judy Chu (D-Calif.) and Brad Sherman (D-Calif.) introduced companion legislation in the House.
“Coloradans know all too well how difficult it is to pick up the pieces and move forward after catastrophic wildfires. When mounting financial and emotional costs of recovery weigh on families, they should be able to take time to put their lives back together and rebuild their homes. This legislation gives Coloradans the support they need to get back on their feet after a disaster,” said Bennet.
“Earlier this year, we watched as families in Los Angeles were devastated by wildfires, and to date, many homeowners are still struggling to rebuild from this disaster. I am proud to introduce this bill so that those who have been affected by natural disasters receive the assistance they need when they need it the most. As natural disasters become more frequent due to climate change, it is critical that we pave a path to stability for homeowners in times of crisis. This is an issue that impacts both red and blue states alike, and I’ll push hard to ensure Congress passes this legislation,” said Schiff.
Specifically, the Mortgage Relief for Disaster Survivors Act will grant homeowners in areas that have received disaster declarations 180 days of mortgage forbearance to support household recovery from disasters, along with an optional 180 day extension, without accumulating interest or penalties.
“After a natural disaster, survivors often have many extra expenses for temporary relocation and basic needs, and may also be facing job loss or medical bills. This bill will ensure that disaster survivors can begin rebuilding their lives before they are required to resume making mortgage payments if they are unable to do so at the outset,” said Alys Cohen, Director of Federal Housing Advocacy, National Consumer Law Center.
“Disasters don’t just destroy homes—they deepen the financial hardship for the lowest income families who were already struggling to make ends meet. By enacting the Mortgage Relief for Disaster Survivors Act, Congress can ensure that impacted low-income homeowners can pause their payments while they recover, preventing displacement and ensuring families can stay in their communities after disasters strike,” said Renee Willis, President and CEO, National Low Income Housing Coalition.
“When disasters strike, homeowners shouldn’t fear a second catastrophe: losing their home to foreclosure. The Mortgage Relief for Disaster Survivors Act provides essential consumer protections for families recovering from disasters, ensuring that they can access mortgage forbearance for up to 360 days without facing penalties and fees. Just as importantly, it sets clear, uniform standards for servicers across the country, so homeowners get the same fair treatment no matter where they live,” said Sharon Cornelissen, Director of Housing, Consumer Federation of America.
Bennet has consistently fought to help survivors of natural disasters rebuild their lives. In May of this year, Bennet reintroduced the Disaster Relief for Farm Workers Act to provide emergency assistance grants to farm workers following disasters beyond their control that affect their ability to earn a living. In February of this year, Bennet introduced the Replacing Essential Passports and Licenses After Certain Emergencies (REPLACE) Act, which would automatically waive replacement fees for survivors who lose critical documents in natural disasters. In November 2024, Bennet reintroduced the Housing Survivors of Major Disasters Act to streamline the process for survivors of natural disasters seeking housing assistance.
The bill is endorsed by the following organizations: Consumer Action, National Consumer Law Center (on behalf of its low-income clients), National Low Income Housing Center, National Housing Law Project, Consumer Watchdog, Consumer Federation of America, and Neighborhood Housing Services LA.
The text of the bill is available HERE.