REALTORS® at Legislative Day also advocated to support continued funding of the California Dream for All Program. The program offers first-generation homebuyers up to 20% of their home’s purchase price in down payment assistance, and the shared appreciation loan structure saves the average homebuyer about $1,200 per month.
The funds are not a subsidy. They act as a lifeline that makes an affordable mortgage actually achievable for many Californians who are now priced out.
Crucially, as homeowners sell their homes, the state recovers the down payment plus a proportionate share of the appreciation and recycles those funds to assist future homebuyers, making it one of the more fiscally responsible housing programs in the budget.
The equity case is equally compelling. Escalating prices have resulted in massive down payments that are too often simply impossible for many first-time homebuyers, and because of the racial wealth gap, this disproportionately affects families of color. California’s Black homeownership rate stands at just 36.6%, nearly 28 points below the rate for white households — the lowest among all ethnic groups in the state.
Dream for All is one of the few tools the state has that directly attacks that disparity. Defunding it would abandon the families who need it most.
Lawmakers from the Coachella Valley agreed to support continuing support for the program in the upcoming budget negotiations.
This article was written by Paul Herrera, Government Affairs Director.
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