California Legislative Leader Wants to Spend $10 Billion to Help Families Buy Homes
The program would provide up to 30% of a home’s purchase price via an interest-free loan in a bid to address the state’s sky-high housing costs
By Christine Mai-Duc
May. 11, 2022 8:00 am ET
A top California lawmaker is proposing to spend $10 billion to help families buy homes in the state with some of America’s highest housing prices.
Democratic State Senate Leader Toni Atkins on Wednesday unveiled details of a proposal she’s pushing to create a revolving fund that would provide interest-free loans for up to 30% of the purchase price of a home for low- and middle-income households.
If implemented, it would be the largest program of its kind in the nation, according to the people who designed it. Proponents hope that it will be included in the state budget that must pass by June 15 and go into effect as soon as January. The aim is for it to eventually help about 8,000 families a year.
The median price for single family homes in California last year was $786,000, according to the California Association of Realtors, more than twice the nationwide average.
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.
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