BILL NUMBER:  AB 2293
  VETOED	DATE: 09/25/2010




To the Members of the California State Assembly:

I am returning Assembly Bill 2293 without my signature.

While I am sympathetic to the difficulties developers of affordable
housing are facing, I am concerned that the practical effect of this
bill would be to establish the Department of Housing and Community
Development as an indirect guarantor of a developer's construction
loan.  The Administration has developed a plan that will enable it to
meet the cash needs of all general obligation bond projects for 2010
and 2011.  However, if the state is required to set cash aside that
is not needed until a later time, it could compromise the ability to
fund other projects that have current cash needs.  In addition, this
bill could remove incentives for bond recipients to perform their
obligations in a timely manner and would further increase interest
costs on bonds.

For these reasons I cannot sign this bill.

Sincerely,



Arnold Schwarzenegger