Governor Announces Actions To Jump Start Economy Through Job Creation, Offset Housing Slump
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Governor Awards Funding for Affordable Housing Projects, Announces Help for Displaced Mortgage and Banking Workers to Get New Jobs
Today, Governor
Schwarzenegger awarded $73 million in Proposition 1C and Proposition 46 funds
for 40 housing projects in 26 cities across the state, helping 1,611 California families rent
or purchase affordable housing. This announcement will be made in Los Angeles at the New
Carver Apartments Project, a development by the non-profit Skid Row Housing
Trust which will receive nearly $8 million to develop 97 housing
units. The Governor will also announce that
the federal government has awarded up to $5.6 million to help mortgage and
banking industry workers laid off as a result of the subprime crisis make career
transitions to high-demand jobs in other
industries.
The Governor is
investing in California's infrastructure and expanding
affordable housing to create jobs, stimulate the economy and improve
communities. The
$73 million awarded today will not only help 1,611 California families rent
or purchase affordable housing, it will also create thousands of jobs
statewide.
- Investing in
affordable housing is part of the Governor's commitment to rebuilding
California. More
than $50 million of the $73 million awarded today is Proposition 1C funding.
- Proposition 1C provides $2.85 billion to finance affordable housing and infrastructure across California and is part of the historic $42 billion package of infrastructure bonds championed by the Governor and approved by voters in November 2006.
- Today's affordable housing awards will put thousands of Californians to work. These awards, coupled with the $69.5 million in permanent low-interest loans from the Proposition 1C housing bonds Governor Schwarzenegger announced earlier this month, will create more than 5,300 jobs and more than $244 million in wages.
Helping keep California's economy
healthy also means supporting those impacted by the subprime mortgage crisis. In addition to the
thousands of Californians who have lost their homes to foreclosure, thousands
have also lost jobs in the construction and housing industries because of the
subprime mortgage crisis. The Governor is committed to helping Californians get
back to work.
- The Governor has
secured $5.6 million in federal funding. This $5.6 million National Emergency Grant from the
U.S. Department of Labor focuses on California's mortgage lending industry, which
has seen more than 8,400 layoffs since July 1, 2007.
- This grant funding is awarded when events create a sudden need for unemployed worker assistance that cannot be handled with existing state funds.
- Funds will be
directed to areas in California with the greatest
needs. The grant
will focus on 12 areas with the highest needs located in the following counties:
Alameda, Contra Costa, Los
Angeles, Orange, Riverside, San Diego,
Sonoma and
Stanislaus.
- One-Stop Centers in these counties have been providing rapid response services to the affected mortgage and finance workers and employers.
- These rapid response services, conducted with Workforce Investment Act funds, include information on the availability of unemployment insurance benefits and other employment services.
- Depending on the skill level of the individual, the length and type of training will vary. For those with limited transferable skills, longer-term training will be needed. Occupational or vocational skills training available through local community colleges will transition workers to new occupations.
- This federal funding
will help displaced workers transition to new jobs. A wide variety of workers have been
affected by the downturn in the housing market, from experienced mortgage
bankers to clerical and administrative staff.
- Many of these laid-off workers have skills that are transferable to jobs in high-growth, high-demand industries, such as healthcare and biotech. Getting these skilled Californians back to work helps the state's economy grow.
In addition to today's
announcements, to help Californians affected by the subprime mortgage crisis,
the Governor has:
- 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.
- Called on Congressional leaders to quickly pass legislation to raise limits for government loan programs to help reduce foreclosures and allow more people to achieve the American dream with solid, responsible loans.
- 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, over the past month the
Governor has:
- Awarded more than $6 million in grants to help more than 1,500 newly discharged veterans as they return to the civilian workforce
- Awarded more than $2.7 million to registered nurse training programs to help boost the health care workforce in underserved areas.
- Expedited implementation of $211 million in Proposition 1E funds to four critical levee improvement projects.
- 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.
