First-time Homebuyer Program Re-authorization Passes Assembly

Without a single loan default, programs in Santa Cruz, Monterey and Contra Costa Counties have helped dozens become homeowners

SACRAMENTO – Assemblymember John Laird (D-Santa Cruz) today announced the State Assembly has passed by a vote of 76-0 a bill, AB 1283, that re-authorizes and extends by five years first-time homebuyer programs in Santa Cruz, Monterey and Contra Costa Counties that provide low- and moderate-income first-time homebuyers with down payment assistance.

“With median home prices continuing to rise, there is an obligation to protect and extend innovative programs like this one,” said Assemblymember Laird.  “In the growing struggle to address the affordable housing crisis, these first-time homebuyer programs are an important part of what needs to be a comprehensive strategy.”

State law requires that a redevelopment agency operating a first-time homebuyer program may only consider 30% of household income for low-income applicants and 35% for moderate income applicants. AB 1283 extends by five years the provision that allows redevelopment agencies to consider up to 40% of an applicant’s household income in determining eligibility for down payment assistance.  Without re-authorization, programs in Santa Cruz, Monterey and Contra Costa Counties will expire January 1, 2008.

The bill next heads to the State Senate for consideration.