...okay, we're going to commercial."
Posted on 04/18/2023 9:36:32 PM PDT by SeekAndFind
Demand for California’s new downpayment assistance program overwhelmed the system and depleted its $300 million budget in less than 12 days, with applications put on pause effective April 7, according to the housing finance agency.
The legislator responsible for proposing the program responded optimistically to the news.
“It is incredible and inspiring to see that the launch of the California Dream for All program has already been so successful,” Senate President Pro Tempore Toni Atkins (D-San Diego) said in a statement April 14. “The fact that it has helped more than 2,400 first-time homebuyers with their down payments in its first two weeks is terrific.
Designed to provide up to 20 percent of funding for low-income first-time home buyers, the “Dream for All” program was initiated with the passage of Assembly Bill 140 in 2021.
Resources are provided through the Dream for All Shared Appreciation Loan, in which the state provides a portion of the down payment in exchange for a share in the property.
The loan, in addition to a portion of the appreciated value of the home, will be repaid when the property is resold, according to the legislation.
The lowest eligible income for the program is $159,000 for several counties throughout the state, with San Franciscans and Silicon Valley residents in Santa Clara and San Mateo residents eligible if they make $300,000, the highest. Los Angeles’s limit is $180,000, and Orange County has the highest income limit in Southern California, at $230,000.
The original text written in 2021 proposed funding the project with $1 billion annually for 10 years. The proposal suggested the $10 billion invested would assist more than 150,000 Californians.
After legislative wrangling, the proposed amount later dropped to $500 million in 2022 and with the state facing a $25 billion budget deficit for the next fiscal year starting in July, Newsom decreased the allocation to $300 million for its introduction in 2023.
The funding gap leaves the program stalled awaiting further resources, according to legislators.
“While we are off to a strong start, we can’t truly make a difference in opening the doors to building generational wealth for Californians—especially those who historically have faced systemic barriers to homeownership—without sustained funding for the program,” Atkins said in the statement.
Read more here...
What's so incredible is that someone is surprised that giving away taxpayer's money would be successful.
50% will be underwater in a year. 75% in 2 years.
California = Countryside Mortgage
That 20 percent is a hell of a lot higher than 50K. Housing in California is tremendously high. 50,000 as a 20 percent down payment would only add to a 300K home. There is no such thing in California. Most likely the 20 percent was 100K each.
How in Hades are people who can’t afford these homes without assistance going to afford the property taxes?!
These people made a deal with the devil. They have to pay it back when they sell the home. God only know what interest they will add to it.
Math is racist.
...okay, we're going to commercial."
Pennies on the dollar at the foreclosure sale of a condemned property.
Many will probably just walk-away after they realize they still have to make monthly mortgage payments — maybe the state will be able to “collect” some of the loss back from future reparations payouts.
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