Amendment
Vetoed on 10/13/25
This bill establishes the California Dream for All Program, a shared appreciation loan program aimed at assisting low- and moderate-income first-time homebuyers in California. The program is designed to expand access to homeownership and wealth accumulation opportunities for California households, with a specific focus on descendants of formerly enslaved persons. The bill creates a revolving loan fund that aims to provide up to $1 billion annually in assistance, including shared appreciation loans, interest rate buydowns, and closing cost assistance. It also establishes the Bureau for Descendants of American Slavery to certify eligible applicants and reserves at least 10% of program funds for certified descendants.
The bill establishes the California Dream for All Program to provide shared appreciation loans to qualified low- and moderate-income first-time homebuyers for owner-occupied homes. It mandates that at least 10% of program funds be reserved for applicants certified as descendants of formerly enslaved people by the Bureau for Descendants of American Slavery. The program aims to provide up to $1 billion per year in assistance, which includes shared appreciation loans, interest rate buydowns, and closing cost assistance. The California Housing Finance Agency is tasked with implementing and administering the program, subject to fund availability. The agency is required to design loan products that balance homeowner wealth creation with program sustainability, explore methods to sell subordinate second mortgages to generate additional funding, and establish a revolving, shared appreciation loan structure.
The California Housing Finance Agency is responsible for implementing and administering the California Dream for All Program. The agency is required to adopt policies, rules, and regulations by resolution of its board of directors to achieve the program's objectives. These include providing assistance to meaningfully expand access to homeownership and expanding opportunities for California households to accumulate wealth. The agency is granted authority to make necessary program adjustments consistent with the requirements of the legislation. Funding for the program is subject to availability, though specific funding sources are not detailed. The bill establishes a revolving loan structure, with loan repayments deposited back into the fund for ongoing use in the program. The Bureau for Descendants of American Slavery, contingent on its establishment through separate legislation, will be responsible for certifying applicants as descendants of formerly enslaved people for the purpose of accessing reserved funds.
The primary beneficiaries of this bill are low- and moderate-income first-time homebuyers in California, with a particular emphasis on descendants of formerly enslaved persons. The program aims to assist up to $1 billion worth of home purchases annually, potentially impacting thousands of households. By providing shared appreciation loans, interest rate buydowns, and closing cost assistance, the program seeks to reduce barriers to homeownership and facilitate wealth accumulation for historically disadvantaged groups. The revolving loan structure is designed to create a sustainable, long-term program that can assist multiple generations of homebuyers. While specific cost estimates are not provided, the program's $1 billion annual target suggests a significant financial commitment from the state. The administrative burden will primarily fall on the California Housing Finance Agency and the Bureau for Descendants of American Slavery, requiring new systems and processes to manage loan origination, servicing, and applicant certification.
The bill amends Section 51523 of the California Health and Safety Code to establish the California Dream for All Program. It grants statutory authority to the California Housing Finance Agency to implement and administer the program, including the power to adopt policies, rules, and regulations without being subject to the Administrative Procedure Act (Chapter 3.5 of Part 1 of Division 3 of Title 2 of the Government Code). This exemption provides the agency with greater flexibility in program implementation. The bill's provisions are contingent on the enactment of separate legislation (Senate Bill 518 of the 2025–26 Regular Session) to establish the Bureau for Descendants of American Slavery by January 1, 2027. The legislation does not explicitly address preemption of local laws or judicial review provisions, suggesting that standard state administrative and judicial procedures would apply to any disputes or challenges arising from the program's implementation.
Several critical issues arise from this legislation. First, the constitutionality of reserving funds specifically for descendants of enslaved people may face legal challenges under equal protection clauses. Implementation challenges include developing a fair and accurate certification process for descendants of enslaved people, which could be complex and contentious. The program's financial sustainability is another concern, as the success of the revolving loan fund depends on homeowners' ability to repay loans and home value appreciation. There may be unintended consequences, such as potential market distortions in targeted areas or the risk of over-leveraging low-income buyers. Opposition arguments might focus on the fairness of targeting assistance to specific groups, the potential for moral hazard in shared appreciation loans, and the overall cost to taxpayers. Additionally, the contingency on separate legislation to establish the Bureau for Descendants of American Slavery introduces uncertainty and potential delays in full program implementation.