RUNNER HOUSING BILL PASSES LEGISLATURE
California Political Desk
September 13, 2007
Legislation To Assist California Families In Owning A Home.
Sacramento – Last week, the State Legislature passed AB 929, a bill that will assist the California Housing Finance Agency (CalHFA) in continuing to provide mortgages for low- and moderate-income families to own a home.
There is an overwhelming need for affordable housing in our state,” said Assemblywoman Sharon Runner (R-Lancaster). “I am honored to author legislation that will assist CalHFA in helping Californians achieve the dream of owning a home.”
California has one of the lowest homeownership rates in the nation currently ranking 49th.
AB 929 will increase the maximum amount of debt that CalHFA may have outstanding by $2 billion, from $11.15 billion to $13.15 billion. This increase will allow the agency to continue issuing bonds and provide below market rate mortgage financing supporting CalHFA’s affordable housing mission. It is important to note that the bonds issued by CalHFA are completely self-liquidating and do not represent a liability to the state budget.
It is vitally important that we provide CalHFA with all the tools necessary to carry out its mission,” said Runner. “Under the current cap, the agency will not have the resources available to assist families in owning a home in the near future.”
It is projected by 2009 that the agency will be unable to issue new bonds resulting in the shutting down of loan programs.
CalHFA is a self-supporting agency that does not rely on tax-payer dollars. The bonds are repaid by revenues generated through mortgage loans. The agency was established in 1975 as the state’s affordable housing mortgage bank.
The Governor has two weeks to sign AB 929 into law.
Sacramento – Last week, the State Legislature passed AB 929, a bill that will assist the California Housing Finance Agency (CalHFA) in continuing to provide mortgages for low- and moderate-income families to own a home.
There is an overwhelming need for affordable housing in our state,” said Assemblywoman Sharon Runner (R-Lancaster). “I am honored to author legislation that will assist CalHFA in helping Californians achieve the dream of owning a home.”
California has one of the lowest homeownership rates in the nation currently ranking 49th.
AB 929 will increase the maximum amount of debt that CalHFA may have outstanding by $2 billion, from $11.15 billion to $13.15 billion. This increase will allow the agency to continue issuing bonds and provide below market rate mortgage financing supporting CalHFA’s affordable housing mission. It is important to note that the bonds issued by CalHFA are completely self-liquidating and do not represent a liability to the state budget.
It is vitally important that we provide CalHFA with all the tools necessary to carry out its mission,” said Runner. “Under the current cap, the agency will not have the resources available to assist families in owning a home in the near future.”
It is projected by 2009 that the agency will be unable to issue new bonds resulting in the shutting down of loan programs.
CalHFA is a self-supporting agency that does not rely on tax-payer dollars. The bonds are repaid by revenues generated through mortgage loans. The agency was established in 1975 as the state’s affordable housing mortgage bank.
The Governor has two weeks to sign AB 929 into law.
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