California Senate Democrats proposed a new program as part of its Build Back Boldly budget plan that would assist first-time homebuyers with purchasing by paying for—and owning—45% of the property. This would cut the purchase price of a home in almost half, significantly lowering the hurdle to homeownership for Californias and ultimately helping to close the racial wealth gap, says Business Insider. The proposal says the first step toward a thriving middle class and generational wealth is homeownership. Subsidized costs would also lower buyers’ overall costs by $12,000 a year.
According to the outline, this program would:
Save families more than $12,000 each year through the subsidized costs;
Establish the California Dream Fund, which would be infused with a one-time deposit of available funds;
Allow first-time homebuyers to partner with the Fund, which would own a minority share of up to 45% of the house;
And target outreach to underrepresented homeownership communities and those with high student debts.
Eligibility for the program is based on income levels, and eligibility of the homes is based on home price. The outline noted that eligibility requirements will differ by region "to reflect the reality that incomes and home prices differ dramatically throughout California." Further eligibility criteria weren't disclosed.
A March survey by the Public Policy Institute of California found that nine out of 10 Californians considered housing affordability a problem, and nearly one in three were considering leaving the state because of it.