Helping Handbook

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HOUSING

Temporary Housing

My primary residence (house, condominium, or apartment) was destroyed by the wildfires, and although I have been able to stay in shelters or with friends and family, I need to find temporary housing of my own. Can anyone help me find temporary housing and/or help pay for it?

Yes, one or more of several different programs or entities should be able to assist you in these circumstances.

First, various charitable organizations such as the Red Cross may be able to provide you with assistance. See “Other Resources” for charitable organization contact information.

Second, if you have homeowners’ or renter’s insurance, temporary housing may be covered by your policy. Talk to your insurance agent.

Third, FEMA provides tax-free grants to households that have been displaced from their primary residence as the result of a federally declared disaster, such as the wildfires, through its Rental Assistance program. These need-based grants enable homeowners and renters who are victims of disaster-related dislocation to obtain temporary replacement housing for one to three months (without recertification). To be eligible for Rental Assistance, you or someone who lives with you must be a citizen, a non-citizen national, or a qualified alien; you must not have other, adequate rent-free housing you can use (for example, a vacation home or unused rental property); and you must be affected by one or more of the following conditions:

Only one application will be taken from each household, which FEMA generally considers to be all people living in one apartment or house.

Aid also may be provided through a joint FEMA/State of California program, the Individuals & Households Program (IHP), or California’s State Supplemental Grant Program (SSGP). In addition, the Department of Housing and Urban Development (HUD) may offer Section 8 rental assistance and relocation plans for tenants in subsidized public housing. Lastly, if you were living in a Rural Development-financed apartment and have been displaced, you may be eligible for additional assistance from the USDA Rural Development Agency at 800-414-1226.

My primary residence, which I own, was destroyed by the wildfires. Am I obligated to continue paying my mortgage, homeowners’ association fees, insurance, etc. on that residence? Does it make a difference if my residence was only damaged rather than destroyed?

Unless you obtain a forbearance agreement from your lender, you should still continue to pay your mortgage, regardless of whether your residence was destroyed or damaged. If (i) your residence has suffered substantial uncompensated disaster damage (40% or more of the original property value), (ii) you intend to repair the damage or rebuild, and (iii) you do not have sufficient credit available elsewhere to cover your mortgage payments, the SBA may be able to refinance all or part of your outstanding mortgage, which might result in a reduced monthly mortgage payment.

Through its Mortgage and Rental Assistance program, FEMA seeks to help homeowners whose pre-disaster homes are habitable but who may lose them because of financial hardships resulting from the disaster. To initially qualify for this type of assistance, you must show that your pre-disaster income has declined significantly as a direct result of the disaster. Second, you must show that you occupied your primary residence before the disaster. Third, you must have a foreclosure notice (not just a letter) from a lender. The notice should indicate that the move to foreclose is due to post-disaster payment delinquency. Note, however, that recipients of FEMA housing assistance are only eligible for one type of FEMA Disaster Housing Assistance at a time.

If your home loan is through the United States Department of Veterans Affairs (VA), you may be able to have the loan adjusted. Call the VA regional office where the property is located. The proper regional office should be on the loan papers; if not available, call the VA at 800-827-6551 for the number of the correct regional office.

With regard to homeowners’ association fees or insurance premiums, you should review the language of your association’s bylaws or the insurance policy. Generally, however, to the extent that you still have some property that might be covered by the insurance policy or affected by activities of the homeowners’ association, it likely is in your best interest to pay the amounts owed.

If my rental unit has been damaged or destroyed, what issues do I need to consider?
What if I have a written lease?

Your rights will be determined by the provisions of your lease (to the extent they are not superseded by California law). There is no “standard” form of lease, and the provisions that cover these matters can vary significantly, even for different leases in the same building. A professional will need to check the provisions of your lease carefully to answer these questions for your particular case. The following is only general information for tenants regarding damaged premises as a result of the California wildfires.

How do I assess the damage to my rental unit?

Under California law, landlords must maintain rental units in habitable condition. A residential tenant cannot be forced to waive his or her right to habitable premises. Unless you have a unique lease that you negotiated with your landlord, this information about habitability most likely applies to your rental unit. In order to be considered habitable, the rental units must substantially satisfy each of the following conditions:

If my rental unit is damaged, what can I do if I have a month-to-month lease and want to move permanently?

You can give a month’s notice to your landlord and then move. If, however, the unit is substantially damaged (i.e., damaged to the extent that the premises are no longer usable as a residence), you may not need to give a month’s notice. In that case, see the guidelines below.

If my rental unit is damaged, do I have to pay rent if I have a one-year lease and I want to move out permanently?

Under California law, you may terminate your tenancy, and therefore not pay rent, if the unit is substantially damaged. If you want to terminate your tenancy, you should:

Assuming that these efforts lead you to conclude that your unit is substantially damaged, you should then write a letter to your landlord, including copies of the documentation set forth above, and state that the rental unit is not habitable and you consider the lease terminated. Make sure to sign and date the letter and keep a copy for your records. You then would be in a strong position to proceed as if the unit were destroyed, although your landlord may dispute that position.

Can I terminate my lease if my rental unit is materially damaged?

You must first notify the landlord of the repairs necessary and give the landlord a reasonable time to make the repairs. If the landlord does not make the repairs within a reasonable time, then you may be able to terminate the lease.

My primary residence was damaged during the wildfires. If I move out while repairs are being made, can I get any assistance in finding and paying for temporary housing?

Depending on the amount of damage, you may be eligible for assistance. Potential sources include charitable organizations, your insurance, and FEMA’s Rental Assistance program, discussed previously.

During the wildfires I was ordered to evacuate my primary residence. Instead of going to one of the local shelters, I rented a room in a motel. Can I obtain reimbursement for the money I spent on the motel room? What if my primary residence was neither damaged nor destroyed as a result of the wildfires?

You may be eligible for assistance from charitable organizations, your insurance or FEMA. You should save your receipts and document your expenses in case you are able to obtain reimbursement.

FEMA’s assistance may take the form of its Transient Accommodations or Government-Provided Temporary Housing program. The purpose of the Transient Accommodation program is to reimburse disaster victims for the cost of short-term housing, such as hotel rooms, that was incurred as a result of damage to the victim’s home or an enforced evacuation. The program will reimburse the cost of up to 30 days of short-term housing. The program does not cover other expenses such as food or transportation. If coverage is available, you will need to provide receipts for your transient accommodations. Additionally, in instances of widespread destruction or damage, if FEMA determines that there is no rental housing available in the local community due to the disaster, it may provide Government-Provided Temporary Housing (e.g., modular/mobile homes) to disaster victims.

The Red Cross and local charities may also offer additional assistance to cover temporary housing expenses.

REPAIR AND REPLACE

My primary residence, which I own, was destroyed by the wildfires. Who can help me have it rebuilt? If my residence was not insured, or the insurance turns out to be insufficient, are there any programs that might help me rebuild?

As with other types of assistance, you should first look to charitable donations and insurance proceeds to cover the costs of rebuilding and repair. To the extent that you were uninsured or underinsured, the SBA, FEMA or the state may be able to help. For more information, see the “SBA Loan Assistance”, “FEMA”, and “State Aid Programs” sections.

When the wildfires destroyed my residence, I lost almost all of my personal possessions. Can anyone help me obtain replacement clothes and necessities? What about replacing my television, VCR, computer, etc.?

Yes, you should be able to replace personal property that was destroyed with insurance proceeds and/or grants or loans from several federal or state programs.

First, if you have homeowners’ insurance or renter’s insurance, the policies typically include provisions for the replacement of personal property, subject to various conditions and policy limitations. Additionally, if you were renting your primary residence, check to see if your landlord named you as an additional insured; if she did, you may be covered under the landlord’s policy.

Second, the SBA may provide a Personal Property Loan in an amount up to $40,000 to both homeowners and renters. The amount of money that the SBA can loan depends on the actual cost of repairing or replacing the damage, less insurance recovery, grants, etc. That loan can be used to repair or replace personal property such as clothes, furniture, automobiles, consumer electronics, etc. However, the SBA loan cannot be used to replace luxury or extraordinarily expensive items, such as personal pleasure boats, airplanes, RVs, fur coats, etc., or to pay for upgrades or make additions to the home, unless required by building codes. Further, property such as antiques or collections of rare goods that may have market values in excess of their functional value only are covered for the amount of their functional value. (For example, reimbursement for a collection of 4 rare quarters would be $1.00, not the price for which one might sell them at a coin show.)

Third, to the extent that your personal property losses exceed the amount of your insurance coverage and/or SBA loans, and assuming other conditions are met, FEMA sometimes will provide disaster victims with assistance in replacing furniture lost when their primary residence was destroyed. If you need such assistance, you will need to specifically request assistance for furniture costs and show that you have need.

If I clean up debris from my property that resulted from the fire, do I need to get some sort of permit?

The California Department of Toxic Substances Control (“DTSC”) has stated that immediate efforts to clean up “ash, charred debris and other contaminated materials from burned [residential] structures” are exempt from hazardous waste permit requirements. Note, however, that this exemption “applies only to emergency actions taken to clean up, contain and dispose of the ash and debris from the burned structures” and “does not apply to long-term restoration activities.” You may want to check with the DTSC at (916) 255-6504 (or check its website at www.dtsc.ca.gov) for more particular information and advice.

Must I send any debris I clean up to a special collection facility?

Although much of the debris likely includes materials that need to be properly disposed of to avoid soil or water contamination, to the extent that hazardous materials cannot be separated from other burned materials (as is likely to be the case in a burned residential structure), the DTSC has indicated that such debris may be sent to municipal solid waste landfills. (This is especially true for residential structures because it is less likely that hazardous materials exist that must be segregated from other wastes.)

My primary residence, which I own, was destroyed by the wildfires. Will I need a permit to rebuild it?

As a general rule, a building permit is required whenever structural work is involved or when the basic living area of a home is to be changed. This could include separate permits for roofing, electrical, heating, and plumbing. Typically the contractor overseeing the rebuilding/repair will obtain the necessary building permits from the city or county building/planning department.

Several cities and counties are contemplating special treatment for building permit applications submitted by wildfire victims. For instance, the County of San Diego will provide plan review and issue building permits at no cost for anyone whose home has been destroyed by fire. In addition, the County will expedite processing of building permit applications. Make sure that you or your contractor ask about any special programs available for wildfire victims regarding building permits. In San Diego, wildfire victims with questions about building permits can call the Building Division Wildfire Hotline at (858) 694-3876. Contact information for the other affected counties’ Permit Offices can be found on the counties’ websites: http://lacounty.info (Los Angeles County); www.oc.ca.gov (Orange County); www.co.riverside.ca.us (Riverside County); www.sbcounty.gov (San Bernardino County); www.countyofsb.org (Santa Barbara County); www.countyofventura.org (Ventura County).

What happens if I do not get a building permit?

If the authorities find out that you have undertaken repairs or rebuilding without obtaining a necessary permit, you will generally pay a fine, and may be ordered to tear down any construction that was done without authorization. The amount of the fine varies by jurisdiction, but is typically at least $1,000 per incident. Further, if you sell your property, you are required by law to disclose work that has been done without the required permits, which could lower the sale price or jeopardize the sale of your property altogether.

My former house was built before the current building codes were put in place. When rebuilding, do I have to conform to the new building codes?

Yes, houses must be constructed according to the current codes in effect at the time the permit is issued for reconstruction. If your house is only being repaired, some cities and counties may not require you to conform to new building repairs if such repairs are considered “minor.” You should check your insurance policy or call your insurance carrier to determine whether your homeowners’ policy provides for upgrades to the current building code. Some policies do not pay for building code upgrades, and you may then have to pay out-of-pocket for such upgrades. During the Oakland Hills fire of 1991, many insurance carriers upgraded policies that did not pay for building code upgrades, but in the years since, many insurers have capped these payouts absent specific policy endorsements.

Is it a good idea to be my own general contractor?

Unless you are very experienced in the construction business, no. As an owner/builder, you assume responsibility for the overall job, which may include state and federal taxes, workers’ compensation insurance, and other legal liabilities.

If I’m not my own contractor, how will I know which contractor to hire?

A standard rule is only to use contractors who have been referred to you by someone you know and trust. However, in times like these, that is not always possible. Unscrupulous contractors may attempt to solicit work from you, offering to repair or rebuild your home for what appears to be a low price. Remember, if something seems “too good to be true” it probably is. Although you may be anxious to get things back to normal, avoid acting too quickly. Take the time the figure out what exactly you want done, and make sure the contractor addresses all your concerns. Make sure to get at least three competitive bids that are based on the same set of specifications before making your decision. Watch out for door-to-door offers of repair services, and never provide the contractor with a cash deposit. You should also get a written contract that details every aspect of the work to be done. Before signing a contract with a contractor, be sure to check his or her license status and references.

Must a contractor be licensed?

State law requires that contractors (other than owner/builders) working on any job that requires $500 or more of work be licensed by the California Contractors State License Board (CSLB). Ask to see the contractor’s license (called a “pocket license”) that has the license number on it (state contractors’ licenses are solely numeric; no alphabetic characters are included in them), as well as an additional form of identification for verification (the contractor’s license should be in the contractor’s own name). You can verify a contractor’s license status by using the CSLB’s website at www.cslb.ca.gov or CSLB’s toll-free automated telephone system at (800) 321-CSLB. The CSLB has also established a hotline only for disaster victims at (800) 962-1125, which operates during weekdays.

Do I need a written contract?

State law requires that home improvement contracts for $500 or more in labor or materials be in writing. Note that anything you sign could be used by a contractor as authorization to go forward with a project, so do not sign anything until you completely understand what it is.

Can I change my mind after I sign the contract?

California law allows you to cancel a contract within three business days of signing it, providing that the contract was solicited someplace other than the contractor’s place of business (such as in your own home). The law requires the contractor to give you written notice of this right to cancel.

How much can a contractor require as a down payment?

California law limits the amount of the down payment for any home improvement contract (including swimming pools) to the lesser of $1,000 or 10% of the contract price (excluding finance charges). As a general rule, never make cash payments to contractors.

How can I make sure the work progresses as scheduled in the contract?

In general, a contract must provide a description of the work to be done, the time period in which it is to be done (including the date on which “substantial commencement of work” should occur), the materials to be used, and the equipment to be used or installed. Contractors often ask that you make progress payments to them as the work progresses. California law requires that the contract specify all the work that is to be completed before a progress payment is made. California law also requires that the progress payment cannot exceed the value of the work performed up to that point. Finally, it is customary to make the last payment a “retention” payment, ordinarily 10%, which you retain until the job is completed and the city and county has approved all work.

What happens when the contractor uses subcontractors or suppliers?

You will need to protect yourself from liens against your property in the event the contractor does not pay the subcontractors or suppliers. California’s Mechanics’ Lien Law allows those who furnish labor or materials to your home to record a lien against your home if they are not paid, even if you have paid your general contractor in accordance with the contract. At its most extreme, a lien may cause your property to be foreclosed if you are unable to pay it. At the very least, a lien will make your property more difficult to finance or sell.

California law requires that the contractor provide you with a “Notice to Owner” of the Mechanics’ Lien Law. That notice suggests measures you can take to prevent liens against your home, such as requiring:

Note that the general contractor also can place a lien on your house if you fail to pay for his or her services.

What effect does an arbitration clause have in my contract?

By agreeing to arbitrate your dispute, you are agreeing to have a dispute with your contractor decided by a neutral third party (known as the arbitrator) rather than by a judge or jury (unless the arbitration is non-binding). Many consumers prefer arbitration to court proceedings because, generally, arbitration is less expensive. However, if you proceed with binding arbitration, you waive almost all grounds for seeking review of the arbitrator’s decision; in almost all circumstances, the arbitrator’s decision will be the final decision, even if you think the arbitrator made a mistake of fact or law.

What is the effect of a clause allowing the contractor to recover attorney’s fees and costs from me if there is a dispute?

Generally, in a legal dispute, each side pays its own attorney’s fees and costs. However, an attorney’s fees clause means that, should the contractor prevail in a dispute in arbitration or in court, you will have to pay the contractor’s attorney’s fees and costs. California law provides a reciprocal benefit with respect to attorney’s fee clauses; that is, should you be the prevailing party rather than the contractor, you may recover your attorneys’ fees and costs despite the fact that the clause may not specifically provide that you are entitled to do so.

A man, who said he was a contractor, offered to clean up my property, assess the damage to it for the purpose of obtaining grants and loans, and rebuild my house for $50,000, with just $5,000 down. Fortunately, I have the money available. Should I hire him?

Before hiring anyone as a contractor or other service provider in connection with damage to, or destruction of, your property, you should take care to be an “aware consumer.” As discussed above, if a person represents himself as a contractor, you should obtain his contractor’s license number and check that it is valid. Additionally, most, if not all, entities and programs that will provide property owners with funds to rebuild or replace damaged property have their own inspection/assessment programs. As a result, unless the funding entity instructs you otherwise, you need not hire a private person or firm to perform an inspection of your property as part of the application process.

Although my primary residence, which I own, was not destroyed during the fires, it was damaged and is no longer habitable. Can I get any assistance to repair my house?

Yes; in addition to charitable grants or loans or insurance proceeds, FEMA and the SBA may be able to help with repairs.

FEMA, through its Individuals and Households Program (IHP), provides grants to homeowners to repair damage from the disaster that is not covered by insurance.  The goal is to repair the home to a safe and sanitary living or functioning condition. These grants are only available when a disaster has been declared and individual assistance has been authorized. FEMA provided up to $5,400 for disasters declared in the 2006 federal fiscal year. 

If you apply for IHP, FEMA will inspect your home and base the amount of its grant on the reasonable cost of repair to the damaged property. Repairs covered by IHP include:

If you own a mobile home and it is your primary residence, IHP will cover repair costs related to blocking, leveling, and anchoring the mobile home.

If your home needs more extensive repairs than the FEMA program will fund, then the SBA may be able to help, as described in response to the question about rebuilding after complete destruction of a residence, above.

My residence was destroyed during the wildfires. Do I need to still pay the property taxes that are due in early December and April?

Generally, yes, but if the total value of the damage to your property exceeds $10,000, you may be eligible for immediate relief based on the loss in value caused by the wildfires. Such relief would provide you with an immediate reduction in property taxes, including possible refunds of property taxes already paid.

Further, owners of real property and manufactured homes may be able to defer, without penalty or interest, payment of the next property tax installment due. (Tax deferral is not available if you pay your property taxes through an impound account.) Applications for deferral should be filed with the county assessor along with, or in addition to, the applications for reduced assessments.

In addition, under certain conditions, taxpayers may be eligible to have the taxable values of their properties in their pre-damaged states transferred to comparable replacement properties. In this way, a taxpayer whose home has been damaged or destroyed can acquire or build a new home without incurring increased property taxes that would otherwise occur under Proposition 13.

For applications and further information, you should contact your county assessor’s office:

Fortunately, my residence was not completely destroyed by the wildfires, although it was damaged and some outbuildings (a garage, shed, stable, etc.) were destroyed. Do I still need to pay my property taxes?

Yes, but see the discussion above if your damage exceeded $10,000.

Prior to the wildfires, I had agreed to purchase a residence/real property that subsequently was destroyed by the wildfires. Must I complete the purchase?

It depends on what the terms of the purchase agreement state and whether title to, or possession of, the property passed prior to the destruction of the property. If title to the property already had passed, then you were the owner as of the date of destruction and may be eligible for assistance from your insurer or from the various sources of aid identified in this handbook. Otherwise, barring contrary language in your purchase and sale agreement, the Uniform Vendor and Purchaser Risk Act, Civil Code section 1662, allows a purchaser to back out of an agreement for the sale of real property if “all or a material part” of the property was destroyed prior to the transfer of title or possession. You may want to obtain the advice of a real estate attorney or other professional to assist you.