An Express Article from the California Land Title Association
Californians will be able to vote on a ballot measure this November that would, under legislation signed by the Governor this past week, authorize $900 million of veterans’ mortgage bonds and open the state-run Cal-Vet loan program to a wider array of prospective veteran homebuyers. The legislation, which has been dubbed the Veterans Bond Act of 2008, is designed to take advantage of new federal legislation entitled “HEART,” or, the Heroes Earnings Assistance and Relief Tax Act.
While the timing may seem suspect to some Californians, the newly enacted legislation is not related to the current mortgage crisis. The Cal-Vet home loan program has been self supporting up until this point, and has seen a remarkably low default rate even amid the recent market conditions. Despite its efficiency, however, the California Department of Veterans Affairs, which administers the Cal-Vet loan program, believes that increased demand for home loans will cause it to exhaust its current bond authority unless approval to issue new bonds is granted by the voters this fall.
Though SB 1572 missed the long-standing June 26 statutory deadline for placing legislative and initiative measures on the ballot, the Legislature and the Governor chose to waive the law and place the measure on the ballot regardless, making the Veterans Bond Act of 2008 the twelfth ballot measure to be voted on by Californians this November.