Deal Reached on California Housing Bond Bill

Aug 29, 2017

The Royal Bank of Scotland Group (RBS) has agreed to a $4.9 billion settlement with the Department of Justice related to the company’s issuance and underwriting of residential mortgage-backed securities (RMBS) between 2005 and 2007

California’s evaporating affordable housing environment was the focus of an agreement between Gov. Jerry Brown and legislative leaders on a $4 billion bond that would fund low-income housing developments and subsidize residential mortgages for California veterans.

According to a Los Angeles Times report, Senate Bill 3 was originally designed to allocate $3 billion for the construction of new homes for low-income Californians. In the new agreement between the governor and legislators, $1 billion was added to the bill to fund homeownership subsidies for veterans. An existing program to promote homeownership for veterans would have been halted in 2018 due to a lack of funding.

"The bond agreement we have reached provides badly needed funding to help Californians, including our veterans, find safe, affordable housing," Assembly Speaker Anthony Rendon (D-Paramount) said in a statement.

The agreement on Senate Bill 3 comes ahead of negotiations on Senate Bill 2, which adds a $75 fee on mortgage refinancing and other real estate transactions to fund low-income home construction. Both bills will require a two-thirds supermajority approval in both houses of the legislature prior to Sept. 15 in order to pass.

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Phil Hall

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Aug 29, 2017

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