News

California to Help 1,700 First-Generation Homebuyers With Down Payments

California to Help 1,700 First-Generation Homebuyers With Down Payments

A “for sale” sign is posted in front of a home in San Anselmo, Calif., on March 22, 2023. (Justin Sullivan/Getty Images)

Jill McLaughlin
Jill McLaughlin

6/29/2024

Updated: 7/1/2024

3

California will help 1,700 first-generation homebuyers with down payments in the second round of its Dream for All Shared Appreciation Loan program, Gov. Gavin Newsom announced June 28.
The state program that debuted last year provides potential homebuyers with vouchers to pay up to 20 percent of a home’s value up to $150,000 to cover a down payment and closing costs. Eligible applicants need to be first-time homebuyers (haven’t owned a home in the last three years) and whose parents don’t currently own a home in the United States.
“As part of the state’s comprehensive efforts to improve affordability, build generational wealth, and unlock access to housing, Dream for All is paving the way home for thousands of Californians,” Mr. Newsom said in a statement Friday. “This program is more than just financial assistance—it’s about providing a pathway for individuals to achieve their California dream.”
The program allows low- to moderate-income families to apply for assistance.
Due to the extremely high demand for the program, however, the California Housing Finance Agency uses a random selection process to ensure all applicants have an equal chance at receiving funding from the $255 million available for the second round of awards.
A third-party audit is performed to certify that voucher recipients meet key program requirements, according to Mr. Newsom’s office.
The housing finance agency plans to allocate funds across nine regions throughout the state—the Capital Region, Central Coast, Central Valley, Inland Empire, Los Angeles, Orange County, San Diego, the San Francisco Bay Area, and rural areas.
Those who receive assistance have 90 days to find a home.
The state provides a portion of the down payment in exchange for a share in the property.
If the recipient sells or refinances the home later, they will be required to repay the initial amount of assistance, plus up to 20 percent of any increase in the home’s value.
Program proceeds will be used to fund the next round of homeowners, according to the governor’s office.
When the program was launched on April 3, 2023, with the passage of a bill authored by Sen. President Pro Tempore Toni Atkins, its $300 million budget was depleted within days.
More than 2,400 first-time homebuyers qualified for the first round, according to Ms. Atkins.
Only 2,200 families received first-round financing, the governor said Friday.
The income limitation to qualify for the assistance is $159,000 for several counties throughout the state, including San Francisco, Santa Clara, and San Mateo.
Los Angeles’s limit is $180,000. and Orange County has the highest income limit in Southern California at $230,000.
The original legislation, written in 2021, proposed a $1 billion per year budget for the program for up to 10 years to assist an estimated 150,000 Californians.
However, after some negotiations, the proposed amount dropped to $500 million in 2022 after the state faced a $25 billion budget deficit that year.
Mr. Newsom again decreased the allocation to $300 million before the program debuted in 2023.
Travis Gillmore contributed to this report.
Copy
facebooktwitterlinkedintelegram

Jill McLaughlin is an award-winning journalist covering politics, environment, and statewide issues. She has been a reporter and editor for newspapers in Oregon, Nevada, and New Mexico. Jill was born in Yosemite National Park and enjoys the majestic outdoors, traveling, golfing, and hiking.

Author's Selected Articles
California Insider
Sign up here for our email newsletter!
©2024 California Insider All Rights Reserved. California Insider is a part of Epoch Media Group.