First Time Homeownership Bond Bill Passes Senate Floor

For Immediate Release: June 1, 2023

Contact: Lerna Shirinian, (818) 409-0400

First Time Homeownership Bond Bill Passes Senate Floor

Sacramento, California – Senate Bill 834, authored by Senator Anthony J. Portantino (D – Burbank), passed the Senate floor. The bill would create a robust financing program to make homeownership more attainable for low and middle-income families.

“Many low and middle income renters are not able to afford conventional down payments and those burdened with student loan debt face additional challenges, which has exacerbated our housing crisis,” stated Senator Portantino. “Too many Californians, have been priced out of the housing market. SB 834 assists prospective homeowners with down payment and construction costs and helps them achieve the dream of homeownership.”

One in five California households spend half or more of their income on housing. The median cost of a home is now in excess of $750,000 – more than two times the national average – and California ranks 49th in the nation for homeownership with a rate of 54 percent. The average California home now costs more than seven times the median income for 25-to 34-year-olds, compared to a cost of only three times the median income for this demographic in 1970

Senate Bill 834 would enact the California Family Home Construction and Homeownership Bond Act of 2023. The bill allows the California Housing Finance Agency to offer two financing programs – a down payment assistance for homebuyers; and infrastructure loans for upfront construction costs. Under SB 834, a loan can only be provided when the final sales price of the property doesn’t exceed either the county or state median price, whichever is lower, for newly constructed homes.

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