California Gov. Gavin Newsom wants to spend $331 million from a settlement with mortgage lenders on legal aid for homeowners and renters.
The proposal announced Wednesday repurposes most of California’s share of a 2012 settlement between states and five large lenders related to the 2008 mortgage crisis. California had previously put some of the money toward servicing housing bonds and other general fund purposes.
But courts ordered the state to return it to a special fund for housing assistance.
Newsom’s idea would put the state in line with the court order. It still needs approval from lawmakers.
Newsom wants the money to go to nonprofits that help people facing foreclosure or evictions.
He’s announcing his plan at a Los Angeles legal aid clinic.
Associated Press