Friday, February 22, 2008

California Tries to Slow the Effects of the Housing Crisis

California's economy has been hit hard by the housing slump. The decrease in home purchases and increase in foreclosures has had a wide-reaching impact throughout the state, far beyond just those in the real estate industry. In an effort to revitalize the economy, this week, California's Governor, Arnold Schwarzenegger, announced the award of $73 million for 40 affordable housing projects in 26 cities in the state. These funds will be used to help 1,611 California families rent or purchase affordable housing. According to the Governor's office, these projects will create an estimated 5,300 jobs in the state and about $244 million in wages.

Governor Schwarzenegger also announced $5.6 million in federal money to train laid-off mortgage and banking industry workers for jobs in other industries. An estimated 8,400 workers in California's mortgage lending industry have been laid off since July 1. The length and type of training provided will very depending on the skill level of each individual. In a press statement, the Governor said "We applied for this grant because we want to help displaced workers transition to new jobs and the money will go to the counties with the greatest need. We are not just sitting by and waiting for the economy to pick back up. We are taking all the action we can to keep people working and rebuilding California."

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