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<br /> '1 A,fp <br /> VlF from page 1 ................. SUPREME COURT from page 1 · · · · · · · · <br /> Funds received by local agencies through The ordinance prohibits a number of abusive <br /> participation in the program can be used for any lending terms and practices for home mortgage <br /> legal purpose. loans made in Oakland, particularly high-cost <br /> homes loans that charge high interest rates or <br /> The program is being offered through the points and fees. <br /> California Statewide Communities Development <br /> Authority ("California Communities"), which has The American Financial Services Association <br /> selected a financing team including Citigroup and (AFSA), a trade group for the subprime lending <br /> E.J. De La Rosa & Co. as managing underwriters. industry, filed suit against the ordinance in <br /> Alameda Superior Court where they were de- <br /> California Communities plans to issue bonds feated and then in the California Court of Appeal <br /> and use the proceeds to purchase the VLF Gap where the challenge was thrown out. <br /> Loan receivables from local agencies and pay <br /> financing costs ("VLF Bonds"). California Commu- Until the state Court of Appeal decision, the <br /> nities will pledge the VLF receivables to secure trade organization had been able to tie up in the <br /> payment on the VLF Bonds; investors will not have courts or successfully challenge anti-predatory <br /> recourse to the local agency's general fund if the lending ordinances in a number of cities across <br /> State is late or does not repay a local agency's VLF the country, including New York, Minneapolis, <br /> Gap Loan. Cleveland, Dayton, Toledo and Los Angeles. <br /> A program description-including information The Oakland City Council enacted the ordi- <br /> on the program's benefits, taxable and tax-exempt nance after hearing testimony from consumer <br /> options. timetable, documentation requirements groups and predatory lending victims on how <br /> and enrollment-can be found by clicking on the unscrupulous lenders were targeting <br /> following link to California Communities' website: homeowners in Oakland's low-income and <br /> https:/Isecure.cacommunities.com/cacomm/apps/ minority communities for abusive loans, particu- <br /> vlf/. Interested parties who would like to speak to larly elderly persons living alone. <br /> someone directly should also feel free to contact <br /> California Communities' Program Manager James "Predatory lending is an unconscionable and <br /> Hamill at (925) 933-9229 ext. 216 malicious tactic that has no place in ethical <br /> Ühamill@cacommunities.com) or representatives banking practices. These practices deprive <br /> of either of the co-senior managers: Michael victims of home equity and lead to foreclosure, <br /> Gomez of Citigroup( 415-951-1615; creating poverty and ultimately eroding the <br /> michael.t.gomez@citigroup.com) or Paul financial health of this City," said Russo. "We <br /> Rosenstiel of E.J. De La Rosa & Co. (415-495- have a moral and legal responsibility to protect <br /> 8863; prosenstiel@ejdelarosa.com). our citizens from this unscrupulous business <br /> - practice. n <br /> - <br /> The League thanks John Fellows from the <br /> City of Torrance for his work in drafting the <br /> League's Amicus brief. <br /> Our Mission <br /> Restore and protect local control for cities through education and advocacy to <br /> enhance the quality of life for all Californians. <br /> PAGE 6/PRIORITY FOCUS Visit the League's Official Web Site -- www.cacities.org <br />