Gov. Schwarzenegger Announces Actions to Jump Start California’s Economy through Job Creation, Offset Housing Slump

Governor Awards Funding for Affordable Housing Projects, Announces Help for Displaced Mortgage and Banking Workers to Get New Jobs

Governor Arnold Schwarzenegger today awarded $73 million for 40 housing projects in 26 cities across the state, helping 1,611 California families rent or purchase affordable housing. The 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. The funding for these projects is from Proposition 1C and Proposition 46. Proposition 1C, which provides $2.85 billion to finance affordable housing and infrastructure across California, is part of the historic $42 billion package of infrastructure bonds championed by the Governor and approved by voters in November 2006.

"This will put people back to work and it will also create hope for some of the people in our state who need it most. Building a better life and pursuing opportunity begins with having a place to live," said Governor Schwarzenegger.

The Governor also announced that the federal government today 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.

"We applied for this grant because we want to help displaced workers transition to new jobs and the money will go to the counties with the greatest need. We are not just sitting by and waiting for the economy to pick back up. We are taking all the action we can to keep people working and rebuilding California," said Governor Schwarzenegger.

Today's announcement was made at the New Carver Apartments Project, a development by the non-profit Skid Row Housing Trust. The Skid Row Housing Trust received nearly $8 million to develop 97 housing units, of which 66 units are dedicated to people who are homeless, recovering from addiction or living with HIV/AIDS.

The job training funds will come from a National Emergency Grant from the U.S. Department of Labor. The U.S. Secretary of Labor, Elaine L. Chao, awards these funds when events create a sudden need for unemployed worker assistance that cannot be handled with existing state funds.

This grant focuses on California's mortgage lending industry, which has seen more than 8,400 layoffs since July 1, 2007. A wide variety of workers have been affected, 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. We want to do whatever is possible to help them make this transition," said Labor and Workforce Development Agency Secretary Victoria Bradshaw.

The grant from the U.S. Department of Labor 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.

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, Governor Schwarzenegger last week 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. This month, the Governor also expedited implementation of $211 million in Proposition 1E funds to four critical levee improvement projects. Last month, he 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.