Today, members of the Senate Republican Caucus participated in a victory rally with the National Asian American Coalition and the National Diversity Coalition. The two non-profit organizations sued the State of California for raiding $331 million that was part of the 2012 national housing settlement intended to help struggling homeowners. Instead of helping distressed homeowners, then-Governor Jerry Brown and legislative Democrats diverted the funds to backfill the state budget.
Recently, the California Supreme Court upheld two lower court rulings which directed the State of California to return the funds to their original intent. In July, legislative Republicans delivered a letter to the current governor requesting him to outline a plan to repay the funds.
"Senate Republicans look forward to working with the National Asian American Coalition and Faith Bautista to achieve the goals they have set out to obtain on behalf of every California homeowner. Since 2015, Senate Republicans have been advocating for the funds to be repaid and help homeowners who were victimized by the banks' illegal lending practices during the mortgage crisis.
"The $331 million was only intended to help homeowners abused by lenders during the mortgage and foreclosure crisis, not to pay down the state debt. Senate Republicans are committed to ensuring the original terms of the mortgage settlement are met and the State of California is in compliance with the court ruling," said Senate Republican Leader Shannon Grove.
Faith Bautista, President and CEO of the National Asian American Coalition said, "I am deeply grateful for the leadership of the Senate Republican Caucus and their advocacy for the past several years. Senate Republicans continue to press both former Governor Brown and Governor Newsom to do the right thing and repay the funds. This is a victory for all Californians. I'm thankful for the leadership of legislative Republicans."