California State Senate Leader Toni Atkins recently announced a proposal to create a revolving fund that will provide interest-free loans for up to 30% of the purchase price of a home for low- and middle-income households, Realtor.com reports. The program seeks to allocate $10 billion dollars to help Californians make home purchases and would be the largest program of its kind in the U.S. if approved.
The program aims to help 8,000 families a year and will be limited to households making 150% of the median income in an area.
The proposal calls for the state government to share in any appreciation in the value of houses it helps purchase when they are sold and then invest those proceeds back into the fund.
“The purpose of this is to create a long-term endowment,” said Gene Slater, chairman of CSG Advisors, which advises public agencies on affordable housing and helped design the program. “We’re investing in the future value of the home so we can help other people.”