California lawmakers are proposing a billion dollar fund to help first-time homebuyers with their down payments.
The “California Dream for All” was put forward by state Senate President pro tem Toni Atkins of San Diego.
Fox 5 San Diego says the program would provide 17% toward the purchase price of a first home, either eliminating the need for a large down payment, or even potentially covering the entirety of the down payment for homebuyers, who would also receive mortgage counseling.
Then, once the homebuyer refinances or sells the home, the state would be reimbursed for the 17% share of the home value.
Atkins said the funds would then be reinvested into the program to help more first-time homebuyers purchase their homes.
The plan proposes a $1 billion investment in the program for the next budget year, with $1 billion being allocated every year for a 10-year period.
On Monday, the legislature passed a budget that includes the proposal, but negotiations are still underway with Gov. Gavin Newsom on the final spending plan.