California lawmakers propose to create a $1 billion fund to aid the homeless First-time homebuyers need to have a down payment.
The program is called “California Dream for All,”Submitted by the state Senate President pro Tempore Toni G. Atkins.
The program would offer 17% Either towards the purchase price for a first home You can eliminate the need to make a large downpayment, or cover the entire down payment for homebuyers. Homebuyers would also be eligible for mortgage counseling.
If the homebuyer sells or refinances their home, the state will be reimbursed 17% of the value.
Atkins stated that the funds would be reinvested in the program to assist more homebuyers.
“The California Dream for All program will give more people the chance to break free from the cycle of renting, become the first in their families to own a home, and make it possible for more people to set their children and grandchildren on a path to success,” Atkins said last month. “This has the ability to change people’s lives.”
California State Treasurer Fiona Ma said the program would provide a path for low-to-moderate income families to buy a home — something that has become unattainable amid the rising prices.
“Given that the current median price of a first-time home in California exceeds $590,000, conventional down payments of 20 percent have become unrealistic for far too many in the Golden State,” Ma said.
The median home price for 2021 was $590,000. However, the average first-time homebuyer’s price that year was $712,000. Atkins’s office.
According to officials, this meant that only 26% households in California were able afford to purchase a median-priced home. Many California families were priced out from home ownership.
Officials claimed that the problem was worsened for families of colour. Only 17% of Latino and Black households are currently able to afford the median-priced home, according to Atkins’ office.
The plan calls for $1 billion in investment in the program during the next budget year. $1 billion will be allocated each year over a 10-year period.
Atkins’ office said work on “California Dream for All”The program was initiated more than a decade ago. The details of the program’s implementation were announced last month when the proposal came to light. By a Senate Budget Subcommittee.
The legislature approved Monday’s budget, which includes the proposal. Negotiations are ongoing with Gov. Gavin Newsom will be finalizing the spending plan.