Dear Chairs Skinner and Kamlager:
We, the undersigned Members of the Legislature, respectfully request $400 million for programs funding the development of affordable, deed-restricted ownership housing, including a minimum investment of $200 million in the existing CalHome program, paired with an increase of unit and project caps in high-cost areas, and $200 million for the state’s existing down payment assistance programs.
Homeownership provides working families with the unparalleled ability to accrue generational wealth and experience housing security, as homeowners are charged a fixed mortgage rate instead of rent which can rise each year. The State, however, is experiencing a severe shortage of deed-restricted ownership housing and entry-level market-rate housing accessible for renters becoming first-time homeowners. This is particularly detrimental for communities of color that still face disproportionately low homeownership rates because of decades of discriminatory housing practices.
The Governor’s proposed budget allocates over $2 billion for the construction, rehabilitation, or conversion of market-rate housing to deed-restricted rental housing. However, rental subsidies, though important, fail to provide the financial stability and housing security enjoyed by homeowners. In contrast, state investment in affordable homeownership creates permanent housing solutions and a stronger return on investment because it is one-time project funding.
The requested single investment ($400million for development of deed-restricted ownership housing, and $200million for down-payment assistance), is approximately30% of the state funds proposed for deed-restricted rental housing programs, but will create a long-lasting impact by increasing the supply of permanently affordable housing. By investing $200 million in down payment assistance, California will help lifelong renters achieve first-time homeownership, through which they can accrue generational wealth and enjoy long-term housing stability. A $400million investment in the development of affordable, deed-restricted, housing will help produce badly needed housing, making the stability and security of homeownership a reality for many Californians. This single investment would support the state’s immediate and long-term housing goals by increasing the supply of permanently affordable housing and provide economic stability and financial independence for families through fixed, affordable mortgages and equity earning opportunities.
As the state’s median home price continues to soar to record-breaking highs, creating homeownership opportunities for California’sworking families becomes even more urgent. Thank you for your consideration of this request. Please feel free to contact my staff Jeffrey Roth (Jeffrey.Roth@sen.ca.gov)if there are any questions about this request.
