Senate Leader Atkins’ CA Dream for All Home Loan Program Launch Successful, More Funding Needed to Fulfill Goal
SACRAMENTO – Senate President pro Tempore Toni G. Atkins (D-San Diego) released the following statement regarding the California Dream for All program reaching its limit of available funding within the first weeks of initial launch:
“It is incredible and inspiring to see that the launch of the California Dream for All program has already been so successful – the fact that it has helped more than 2,400 first-time homebuyers with their down payments in its first two weeks is terrific.
That rapid response and resulting use of the $300 million in funding currently available shows just how critical this down payment assistance program is for California families.
From the outset, the goal of this program is to make homeownership more affordable for lower-income and middle-income first-time homebuyers, particularly first-generation homebuyers from families that have faced systemic barriers to homeownership. As we work to build on the administration’s strong initial implementation of California Dream for All, we must ensure this program maintains a lens of addressing increased equity and diversity in the housing market.
While we are off to a strong start, we can’t truly make a difference in opening the doors to building generational wealth for Californians – especially those who historically have faced systemic barriers to homeownership – without sustained funding for the program.
I look forward to working with my colleagues in the Legislature and with the Governor to get the remaining $200 million already appropriated out the door. In addition, we will work to secure more state funding and explore additional private sector options to build the California Dream for All program into a robust, revolving program that will ultimately benefit a more diverse representation of California’s first-time homebuyers throughout the state.”
The California Dream For All program, which was originally proposed by Pro Tem Atkins as a way to help first-time homebuyers and be yet another way to address the state’s pervasive housing crisis, was created as part of the Budget Act of 2022 budget agreement. While that budget appropriated $500 million for the program for the 2022-23 fiscal year, the remaining $200 million has not yet been released. The goal is to appropriate $10 billion over a 10-year period – $1 billion per year. After that point, the program should become self-funded, with the appreciation proceeds of prior partnerships revolving back into the program to partner with new first-time homebuyers.
The CA Dream for All program is an innovative approach that allows California to partner with first-time homebuyers and, in a typical case, provide up to 20 percent or more towards the home purchase, essentially turning a $500,000 home, for example, into a $400,000 home. The homebuyer and the state will then share equity appreciation proportionately once the home is sold or refinanced. At that point, the state’s share will go back into the program to make homeownership possible for first-time homebuyers.
For more information about the California Dream for All program, click here.
Toni G. Atkins is President pro Tempore of the California Senate. Having previously served as Speaker of the California Assembly, she began her tenure in the Senate in 2016. As Senator for District 39, she represents the cities of San Diego, Coronado, Del Mar and Solana Beach. Website of President pro Tempore Toni G. Atkins: www.senate.ca.gov/Atkins