07/15/2008 GAAS:531:08 FOR IMMEDIATE RELEASE Print Version | Email / Share
Governor Schwarzenegger Signs Housing Industry Legislation
Governor Arnold Schwarzenegger today signed SB
1185 by Senator Alan Lowenthal (D-Long
Beach) allowing developers
to build already approved subdivisions as soon as financing becomes available
by extending the expiration date for specified subdivision maps.
"Over the past several
months, my Administration has worked hard to offset California's housing slump and stimulate the
overall economy. And with today's action, we will be ready when the market turns
around and demand goes back up," Governor Schwarzenegger said.
Due to a slowing housing market, it has become more difficult for
developers to secure financing to build projects where subdivision maps have
already been approved. These maps will soon expire and require developers to go
through the entitlement process again, which can take years. This bill allows a
one-time extension of existing subdivision maps so developers can build
immediately when the demand for housing goes up. It gives developers an
automatic 12 month extension on previously approved subdivision maps and allows
local governments to approve an additional 12 month extension at their
discretion.
To help Californians affected by the housing market downturn,
the Governor has:
- Led efforts urging Congress and the Bush Administration to raise federal loan limits. Last fall, the Governor sent a letter calling on Congress to increase those limits and sent a similar letter again earlier this year. After Congress and the President approved a temporary increase, the Governor asked them to make the increase permanent. In February, the Governor met with the U.S. Department of Housing and Urban Development Secretary in Washington D.C. to reiterate the importance of a permanent loan limit increase.
- Announced $10.5 million to train workers displaced by the housing slump.
- Awarded $73 million for affordable housing projects in Proposition 1C and Proposition 46 funds to help more than 1,600 California families rent or purchase affordable housing.
- Awarded $5.6 million to help displaced mortgage and banking workers find new jobs.
- Announced $69.5 million in permanent low-interest loans from the Proposition 1C housing bonds to jumpstart 14 affordable multi-family projects up and down the state, helping more than 1,000 California families and individuals realize the dream of an affordable rental home.
- Announced more than $72 million in federal HOME Investment Partnerships Program funds to provide assistance to first-time homebuyers, reduce the number of bank owned homes and increase the number of rental properties.
- Joined the OneCalifornia Foundation to announce a bridge loan fund for homeowners facing foreclosure in Oakland.
- Launched a $1.2 million public awareness campaign to help educate homeowners about options that can help them avoid losing their homes to foreclosures.
- Announced an agreement with major loan servicers to streamline the loan modification process for subprime borrowers living in their homes.
- Signed
legislation to increase protections for Californians who own or plan
to purchase homes and to expand affordable housing opportunities.
In further actions to stimulate California's economy, Governor
Schwarzenegger awarded more than $6 million in grants to
help more than 1,500 newly discharged veterans as they return to the civilian
workforce and more than
$2.7 million to registered nurse training programs. The Governor also expedited
implementation of $211 million in Proposition 1E funds to four critical levee
improvement projects. In January, the Governor called an emergency meeting of his cabinet and instructed them to recommend ways to work with the legislature and speed
the release of $29 billion in unallocated funds from the 2006 infrastructure
bonds for the construction of roads, schools and levee repairs.
