FILIPINO/AMERICANS are among those pushing California Gov. Jerry Brown to repay more than $331 million in funds intended to help homeowners struggling with foreclosures that the state siphoned off to help deal with its budget crisis.
A Sacramento County judge ruled that Brown and the state Legislature illegally diverted most of a fund that was part of a $25 billion settlement between five major banks and nearly every state in 2012.
Three minority housing groups – the National Asian American Coalition, the National Hispanic Christian Leadership Conference and COR Community Development Corp., an African-American community group – filed the lawsuit in March 2014.
Brown's attorneys argued the state had the discretion to use that money in the state budget. But the judge sided with the community assistance groups in ruling the money should be used to help California homeowners affected by the mortgage crisis. The ruling by Sacramento County Superior Court Judge Timothy Frawley was issued last month, but it has not been finalized.
Gov. Brown hasn't decided if he will appeal, his finance department spokesman, H.D. Palmer, said July 6. Brown's administration did not to respond to questions about whether he would agree to return the money.
"Governor Brown, do the right thing," said Faith Bautista, chief executive and president of the National Asian American Coalition, a nonprofit housing counseling group based in Daly City, Calif., that was the lead plaintiff in the lawsuit. "This is long overdue because we should have helped the homeowners since 2012. And now it's 2015."
The groups say the money should have been distributed to an estimated 800,000 homeowners affected by the foreclosure crisis. The homeowners would have used the money for things such as helping get loan modifications, restoring credit scores, buying new homes or paying for moving.
“Governor Brown and the legislators have to figure out a way to return that money back. Money that was borrowed should be returned, ” said Bautista.
Bob Gnaizda, general counsel of NAAC said, “The governor is being advised by his legal counsel to avoid responsibility for the court order specifically they’re telling the governor to wait it out two more years by appealing and maybe it will last three plus years and he won’t even be governor then.”
Part of the $25 billion settlement from major banks intended to help distressed homeowners was used to balance the state’s budget.
The lawsuit was filed by attorney Neil Barofsky, former inspector general for the federal bank bailout. The lawsuit said the state should now repay the money because it is projecting budget surpluses in coming years.
Harris, the state's attorney, recused herself in the case because she helped negotiate the national settlement with banks, securing extra funding for California. Her spokeswoman, Kristin Ford, said Monday that the attorney general continues to object to the money being used for other purposes than for which it was intended.
"While the state is undeniably facing a difficult budget gap, these funds should be used to help Californians stay in their homes," Harris said of the governor's spending proposal back in May 2012.
Brown's attorneys argued the state had the discretion to use that money in the state budget. But the judge sided with the community assistance groups in ruling the money should be used to help California homeowners affected by the mortgage crisis. The ruling by Sacramento County Superior Court Judge Timothy Frawley was issued last month, but it has not been finalized.
Gov. Brown hasn't decided if he will appeal, his finance department spokesman, H.D. Palmer, said July 6. Brown's administration did not to respond to questions about whether he would agree to return the money.
"Governor Brown, do the right thing," said Faith Bautista, chief executive and president of the National Asian American Coalition, a nonprofit housing counseling group based in Daly City, Calif., that was the lead plaintiff in the lawsuit. "This is long overdue because we should have helped the homeowners since 2012. And now it's 2015."
The groups say the money should have been distributed to an estimated 800,000 homeowners affected by the foreclosure crisis. The homeowners would have used the money for things such as helping get loan modifications, restoring credit scores, buying new homes or paying for moving.
“Governor Brown and the legislators have to figure out a way to return that money back. Money that was borrowed should be returned, ” said Bautista.
Bob Gnaizda, general counsel of NAAC said, “The governor is being advised by his legal counsel to avoid responsibility for the court order specifically they’re telling the governor to wait it out two more years by appealing and maybe it will last three plus years and he won’t even be governor then.”
Part of the $25 billion settlement from major banks intended to help distressed homeowners was used to balance the state’s budget.
The lawsuit was filed by attorney Neil Barofsky, former inspector general for the federal bank bailout. The lawsuit said the state should now repay the money because it is projecting budget surpluses in coming years.
Harris, the state's attorney, recused herself in the case because she helped negotiate the national settlement with banks, securing extra funding for California. Her spokeswoman, Kristin Ford, said Monday that the attorney general continues to object to the money being used for other purposes than for which it was intended.
"While the state is undeniably facing a difficult budget gap, these funds should be used to help Californians stay in their homes," Harris said of the governor's spending proposal back in May 2012.
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