Why New York City is getting a $400 million bailout fund

NEW YORK (Reuters) – New York State Treasurer Josh Gottschall said on Friday he expects the state to receive a $4.5 billion state loan to help finance a $40 billion mobile home financing fund.

Gottschall, a Republican who has criticized President Donald Trump, told reporters the loan is aimed at helping struggling New York homeowners with an “unprecedented wave of home-equity sales” during the second quarter.

“It’s a significant amount of money, but we are going to use it in a smart way,” Gottschism said.

The $4 billion loan, which the New York Economic Development Corporation said would come from New York state sales tax revenues, is to be used for three types of loans: for the purchase of mobile homes, the purchase or lease of new mobile homes and the purchase and lease of existing mobile homes.

Gotchism has said the state will be able to use $5 billion of the loan in a fiscal year ending April 30.

He said the funds would be used to cover a range of expenses, including providing loan assistance for lower-income New Yorkers and helping to build more affordable housing.

“This is a major investment in our state,” he said.

“We are making the investments we need to get our economy back on track and start growing again.”

The $40 million loan, however, is being backed by the Federal Housing Administration and state and local governments, not the federal government.

In a statement, the FHA said the loan was “not intended to cover every single home owner” in the state.

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