California Planning To Create Legal Fund To Help Fight Evictions

Sacramento, CA — We reported earlier that the California Supreme ruled that around $331-million was improperly spent from a settlement agreement paid to the state by large banks and lenders in 2012.

The funds were supposed to help those impacted by the mortgage crisis, but instead were used to help balance the state budget and pay off housing bonds. The actions were taken during the administration of former Governor Jerry Brown.

Governor Gavin Newsom is now proposing to spend the $331-million on a program to help provide legal aid for homeowners and renters who are being foreclosed or evicted.

Newsom says, “Families facing eviction and foreclosure should know their rights and have legal advocates who can fight on their behalf – especially at this moment when Californians are grappling with sky-high rents and huge housing costs.”

Newsom still needs approval from both the Senate and Assembly.

Senate Republican leader Sharon Grove of Bakersfield has released a statement reading, “Senate Republicans have been advocating to return these funds to help struggling homeowners since 2015. Unfortunately, it took mounting pressure and the California Supreme Court weighing in, before the governor relented and did the right thing. Senate Republicans will continue to monitor the situation to ensure these funds are directed to their intended purposes.”