Rep. Ellen Tauscher, D-Alamo, introduced a bill Wednesday that would let the California Housing Finance Agency issue an estimated $10 billion in new bonds to help refinance “underwater” mortgages and jump-start growth in neighborhoods devastated by home foreclosures.
The bill also would grant CalHFA the power to use Troubled Assets Relief Program (TARP) money to help families refinance their homes at a price they can afford in order to avoid foreclosure.
“Foreclosures are decimating neighborhoods from Fairfield to Antioch and Oakley,” Tauscher said in her news release. “This legislation will help families in the hardest hit areas get the additional resources they need to stay in their homes and keep these vibrant communities from disappearing.”
Cardoza’s Central Valley district includes more than half of the city of Stockton, which has been rocked by one of the nation’s highest foreclosure rates. “As I have continued to say, the foreclosure crisis remains at the heart of our nation’s economic crisis. It is imperative that we pursue all means to address this problem and ensure that taxpayer funds are being used in the most responsible way,” he said.
UPDATE @ 8:36 A.M. THURSDAY: Click here for a copy of the bill.