Real Estate Articles
Realtors ask legislators to fully fund 'Dream for All' program
On May 3, Legislative Day, California Realtors took two "hot issues" to their legislators. The first: fully fund the California "Dream for All" program. The second: oppose SB 466 (Wahab) - Expansion of Extreme Rent Control.
The "Dream for All" program was a top lobbying priority for the California Association of Realtors and other homeownership advocacy groups last year and a big win with $500 million budgeted for the first year; however, the Department of Finance only released $300 million of the amount and that money ran out of funds in just 11 days. C.A.R. supports a plan for full funding, which would include the $200 million previously approved, plus $800 million which would amount to a total $1 billion for the program.
Realtors believe the program is especially important for first-time homebuyers from communities of color. Studies show in 2022, only 12% of Latino and Black households could afford a median priced home in California.
When meeting with Assemblymembers Marc Berman and Gail Pellerin and state Senators Josh Becker and Dave Cortese, members of the Silicon Valley Association of Realtors (SILVAR) explained that many working Californians have a salary that allows them to own a home but cannot come up with large down payments. The 20% down payment loan program for qualified first-time homebuyers would be self-supporting since once the property is sold, transferred, or refinanced, the original 20%, based on the lower of purchase price or appraisal, would be due along with 20% of any appreciation.
"Funding for homeownership should be included in the budget because homeownership should be achievable for everyone," said SILVAR C.A.R. Region 9 director Denise Welsh.
C.A.R. opposes SB 466 because it would dramatically expand the number of properties subject to extreme rent control by weakening the Costa-Hawkins Rental Housing Act, which puts guardrails on local rent control ordinances. SB 466 would harm small property owners by changing the rules on which they have come to rely.
"The proposal would allow extreme rent control to be applied to newer units on a rolling basis. The end result of the changes would mean eventually all units would be subject to extreme forms of rent control," said SILVAR past president Brett Caviness. "Most of all, this proposal would discourage the creation of new housing. Imposing extreme rent control to newer housing units would create a disincentive for builders to build more housing, making California's housing shortage even worse."
The legislators agreed to back full funding for the Dream for All program. On the issue of extreme rent control, they felt they would have to study the bill's path. They explained the process would require changes along the way.
"You shouldn't tinker with rent control right away. We'll see where it goes. I made a pledge long ago that I would protect homeownership," said Cortese.
Cortese thanked the Realtors for their visit. "It is meaningful to see you up here. Today you represent the industry, and you are the link to the people's American dream and people appreciate what you do."
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please email or call the SILVAR office at (408) 200-0100.