October 20, 2009 – (RealEstateRama) — Governor Arnold Schwarzenegger today issued the following statement after the Obama Administration’s announced move to provide support to housing finance agencies across the nation. This action will help restart the housing market for low to moderate income first-time homebuyers, including in California, which has been among the hardest hit by the real estate crisis.
“This plan will breathe life into new lending and provide great opportunities for first-time homebuyers in California, all at a time when we are seeing the highest level of affordability in the state in two decades,” said Governor Schwarzenegger. “I applaud President Obama and his team for understanding the important role state housing finance agencies play in affordable housing for low and moderate income Americans. Across the nation and right here in California these agencies have been forced to suspend lending programs due to turmoil in financial markets – and with this support they will now be able to re-start programs and provide more housing opportunities for Californians.”
The Obama Administration’s initiative has two parts: a new bond purchase program to support new lending by housing finance agencies and a temporary credit and liquidity program to improve the access of housing finance agencies to liquidity for outstanding HFA bonds.
This move will enable the California Housing Finance Agency to improve its internal financing structure, saving the Agency millions of dollars which can then be passed onto California homebuyers and renters. The plan also includes the ability to issue new bonds to finance mortgage loans and the development of affordable rental units for low and moderate income California residents.
Created in 1975 as the state’s affordable housing bank, the California Housing Finance Agency, has invested more than $19 billion in non-taxpayer funds to help more than 150,000 California families live in a home of their own with a mortgage they can afford and invested more than $1.4 billion for the construction and preservation of more than 33,000 affordable rental housing units to assist very low and low income Californians. For more information, please visit www.calhfa.ca.gov.