More on one of the proposals to spend the state’s budget surplus. It doesn’t make the homes any cheaper, so home buying will still be limited to the affluent who can afford the payments:
First-time buyers often rely on family gifts to afford the down payments on their homes. Now California Legislators want the government to fill the role of generous relative.
Lawmakers are proposing creating a billion-dollar fund in this year’s state budget that would provide California’s first-time buyers either all of the money they need for a down payment, or very close to it, in exchange for partial ownership stakes in those residences.
Atkins said the California Dream for All program is aimed at creating opportunities for lower- and middle-income buyers in a rapidly rising market, including those who have faced racial and economic barriers to homeownership.
“The California Dream for All program will give more people the chance to break free from the cycle of renting,” Atkins said last month. “This has the ability to change people’s lives.”
The proposal is the subject of negotiations between the Legislature’s Democratic supermajority and Gov. Gavin Newsom, also a Democrat, on how to spend a projected budget surplus of $97.5 billion. The legislature passed a budget on Monday that includes the proposal, though negotiations with Newsom continue on a final overall spending plan.
A spokesman for the governor declined to comment on the proposal, citing the ongoing negotiations. It was not included in the governor’s original budget nor in his May revised budget.
The housing proposal – which would call for issuing revenue bonds of $1 billion a year for 10 years to create the fund — is the largest in a slew of proposals intended to promote homeownership this year. The proposal also includes $50 million in the budget this year, and $150 million per year after that to pay for the administrative costs of the program and the interest costs of the revenue bonds.
The program envisions helping some 7,700 borrowers a year, according to estimates made by the program’s designers based on home price projections. A start date for the proposed program has not been indicated.
Read the full article here:
https://calmatters.org/california-divide/2022/06/california-down-payment-help/
So basically CA wants to do even more than it has to make the cost of housing become even more unaffordable just like guaranteed student loans did to college tuitions after the feds took control of that program. Well okay then. Thanks in advance Sacramento for another mil or so in equity…since you are so big on that term these days.
Why not just do 100 yr mortgages at 1% interest rates instead? Share equity? No thanks.
WHY WOULD THEY ISSUE BONDS WHEN THERE IS A MULTI BILLION DOLLAR SURPLUS?
Gotta love socialism.! Go Gavin! How about a free electric car in the garage and a fridge full of food every week. Put it in my tab!
Yikes! This is really getting interesting!
in today’s episode of “What could go wrong?”…..
giving people money to buy already expensive homes!!
WHY WOULD THEY ISSUE BONDS WHEN THERE IS A MULTI BILLION DOLLAR SURPLUS?
Especially when they start off with the surplus being the reason they thought of this:
The proposal is the subject of negotiations between the Legislature’s Democratic supermajority and Gov. Gavin Newsom, also a Democrat, on how to spend a projected budget surplus of $97.5 billion. The legislature passed a budget on Monday that includes the proposal, though negotiations with Newsom continue on a final overall spending plan.
I have an idea. How about refunding some of the $25k I paid in state taxes last year when over 50% of the people paid $0! Yes zero!
Tired of subsidizing the bottom 50%. The bottom 50% of taxpayers should be the ones moving to Nevada and Texas and not the law-abiding taxpayers in the top 10%. The bottom 50% taxpayers are a drain on the system and the state leaders are willing to give them more handouts. This is not about compassion; teach one to fish and don’t hand out fish. Attract businesses and don’t run them out of state with regulations and taxes. Be business friendly and not government centric.
How do we find this program or when will it be established. Are they still working on it?
Still working