Democratic politicians have proven time and time again that they will not hesitate to act corruptly so long as doing so benefits them or their agenda. Such is again the case in a California scam where it was confirmed that over $331 million of a ‘special deposit fund’ had been ‘unlawfully diverted’ towards other programs.
While the funding had been mandated to benefit California residents affected by the housing market crash, it was instead used for other projects, to which the governor has since been ordered to repay. Yet aligning with liberal consistency and further proving that they simply will not give up, a recently passed measure has attempted to thwart the recent ruling by justifying the spending.
Following the 2008 housing market crash, “the federal government and 49 states sued…the five largest mortgage servicers in the country related to their actions” which resulted in countless homes being foreclosed on.
As a result, the National Mortgage Settlement Fund allocated over “$20 billion in financial relief for homeowners damaged by the mortgage crisis and provided about $2.5 billion directly to states.”
The offending mortgage lenders were Ally, Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo.
California was subsequently awarded $410 million to which former California Attorney General Kamala Harris mandated was to “directly help homeowners who suffered and were impacted by the housing crisis.”
In doing so, the funding was said to have the ability to specifically help low-income and minority families who were primarily affected upon being granted loans which they were later unable to repay.
Yet instead of using the funding to help California residents who needed it most, under Governor Jerry Brown and the Department of Finance, $331,044,084 was instead transferred to the state’s general fund.
Combatting this injustice, COR Community Development Corporation, the National Asian American Coalition, and the National Hispanic Christian Leadership Conferences joined to sue the governor and the department in 2014 for illegally diverting the funds otherwise “under a provision that allowed 90 percent of the money to be diverted to the general fund, regardless of Harris’ instruction.”
In July this year, Judge Andrea Lynn Hoch of the California 3rd Appellate District Court ordered that Brown was to repay the over $331 million which had been illegally used for other efforts. It supported a similar 2015 Sacramento County Superior Court ruling which was nonetheless ignored.
Further, under Brown’s rule, the allocation was recently confirmed in an attempt to justify that the funds were directed towards housing concerns.
Under Assembly Bill 1829, passed on August 16, in the Senate Committee on Budget and Fiscal Review, the funding allocation was amended to indicate that the funds were used appropriately, citing that “the state has funded and allocated billions of dollars for affordable housing the past several years,” “encourage[d] housing development,” and assisted veterans, among other claims.
Even more horrendous and highly hypocritical is that the same liberals who have stood behind Brown were among the groups who participated in Occupy Wall Street protests against the big banks and ‘economic inequality.’
While many may have been unaware of the illegal spending, Brown’s actions are highly indicative of his corrupt governing considering that the very people he pledged to protect were demanding that reforms be made, and they would have been had Brown not created the ‘90 percent provision.’
Despite the overwhelming need for Governor Brown to apologize to the people of California and return the misappropriated funding, the recent act is being referred to as a way to justify the fact the governor directly stole from the people.
Canada Free Press reported that “Democrats not only can’t acknowledge the wrongness of their division, they’re actually seeking to legitimize it.”
Of course, there would be nothing to legitimize if the governor had ensured that the housing fund was used for its intended purpose in the first place, leading many to question Brown’s integrity.
While one might think that the governor of a state with outrageously expensive housing would gladly accept and appropriately allocate any funding which could amend some of the damages from the housing crisis beginning in 2008, Governor Brown failed to assist his own citizens.
The spending is now being referred to as a “‘reclassification’ of intent” which CFP suggested will ultimately lead to the state appealing the recently passed act in the state Supreme Court.
While AB 1829 claims that the funding was used for the purpose of rebuilding the California housing market, it arguably would have no need to exist, again, if Brown had simply used the funds as initially mandated.
Unfortunately, indicated by his actions, Brown has not stood by his promise to work for the people of California affected by the economic crash. However, considering that the governor and fellow liberals share the goal of protecting illegal aliens, often over the American people, he likely would not have had the time or funds to do so anyway.