Chiquita Canyon Landfill: mortgage forbearance: property tax reassessment and penalties.

Assembly Member Schiavo's legislation creates a mortgage forbearance program and property tax relief measures for residents affected by the elevated temperature event at the Chiquita Canyon Landfill in Los Angeles County. The bill allows borrowers experiencing financial hardship due to the landfill incident to request up to 90 days of mortgage payment forbearance, renewable in 90-day increments, if requested by January 2028.

The measure authorizes county supervisors to reassess property values for real estate within five miles of the landfill and suspends property tax penalties, costs and interest until April 2030 for properties in ZIP codes 91384, 91381, and 91355 that are within the five-mile radius. These tax relief provisions apply only to properties that were not already delinquent as of April 2025 and those not paid through impound accounts. The bill also modifies installment payment plans for delinquent taxes, preventing defaults until 2030 if payments were current as of January 2025.

Mortgage servicers must notify borrowers within five business days whether forbearance requests are approved and provide written explanations for denials. During forbearance periods, servicers cannot initiate foreclosure proceedings or charge late fees if borrowers comply with terms. The Department of Financial Protection and Innovation will post guidance about forbearance programs and maintain a dedicated phone line for affected borrowers.