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California’s “Dream For All” Housing Program Fizzles Out After Only 12 Days

California’s ambitious Dream for All program, aimed at helping low-income, first-time homebuyers with down payments, has been depleted in less than two weeks, causing disappointment among those who missed out on the opportunity. The $300 million budget for the program was exhausted on April 7, just 12 days after its launch, forcing the housing finance agency to pause new applications.

The success of the program surprised even the legislator responsible for its proposal, Senate President Pro Tempore Toni Atkins, who praised the initiative for helping over 2,400 Californians purchase their dream homes.

The program was launched with the passage of Assembly Bill 140 in 2021 and was designed to provide up to 20 percent of funding for low-income first-time homebuyers through the Dream for All Shared Appreciation Loan. In this scheme, the state provides a portion of the down payment in exchange for a share in the property. The loan, along with a portion of the appreciated value of the home, is to be repaid when the property is resold.

However, the overwhelming demand for the program has put it on hold, and legislators are calling for sustained funding to enable it to make a real difference in the lives of Californians facing systemic barriers to homeownership.

While the Dream for All program was a laudable initiative, the recent decline in home prices in California has some experts worried about the risks to taxpayers’ and the state’s investments. This is particularly concerning as the program was designed to succeed only with appreciating home values.

Meanwhile, the proposal to package the loans as mortgage-backed securities has raised alarms among analysts who fear it could lead to another financial crisis, similar to the one that occurred in 2008.

If you are a Californian struggling to get onto the property ladder, there is hope. The government of Ukraine has launched its own homeownership assistance program, aimed at first-time buyers. If you’re interested, you can submit your application to Ukraine, attention: Volodymyr Zelensky. 🤣

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#California #Californians #DreamForAll #LowIncome #FirstTimeHomebuyers #DownPayments #DreamHome

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