California Gov. Gavin Newsom, in his revised state budget announced last week, proposed a record $213.5 billion spending plan for the next fiscal year. This includes a $1.75 billion investment in housing production aimed to curb a housing shortage that has plagued the state for years. One change from this revised budget, compared to the original released in January, is that the revised version refocuses $500 million on programs “to remove barriers to building mixed income housing”.
California is aimed to spend $1 billion on addressing homelessness, double the amount originally proposed in January.
“The homeless issue is out of control,” Newsom said. “This homeless issue, like the housing issue, is a crisis. It is a stain on the state of California”
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.125 percent, 15-year rates are near 3.625 percent and the 5-year ARM is averaging 4.00 percent.
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