Governor Gavin Newsom announces a plan yesterday to channel money secured from banks in 2012 to Californians who may be facing evictions and foreclosures. That’s after the state supreme court rules that the governor misspent $331 million captured from a major bank in a national mortgage settlement in 2012. State government received $410 million. $331 million was initially set aside to educate homeowners and give them legal help.
Governor Jerry Brown and the democratic legislature spent most of that money paying off state debts from housing bonds. The National Asian American Coalition and other groups sued and the supreme court sided with the coalition. A spokesperson with the Asian coalition says the governor’s plan complies with the state court ruling.