STATE-FUNDED RESIDENTIAL LOANS. INITIATIVE CONSTITUTIONAL AMENDMENT.

STATE-FUNDED RESIDENTIAL LOANS. INITIATIVE CONSTITUTIONAL AMENDMENT. Establishes State-owned bank to provide low-interest residential loans to California citizens. Makes sole qualification for loans proof of timely monthly rental or housing payments for three years or more. Allows persons to borrow an amount that would result in monthly mortgage payments up to 1 1/2 times their current monthly payments, and offers loan periods of 10, 15,20, and 30 years. Prohibits foreclosure; encourages assistance with rescheduling or reducing past-due loan or property tax payments; guarantees loan refinancing for original borrower if loan maintained for no less than three years. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: This initiative would have the following major fiscal effects: (1) In the ne.ar term, potentially tens of billions of dollars in annual state costs for property loans by the new State Bank. In the longer term, potential annual operating costs, depending on actions by the Legislature and the program\u27s operation. (2) Lost property tax fees, penalties, and interest revenues to local governments, potentially up to tens of millions of dollars annually