Governor Signs First-time Homebuyer Program Re-authorization

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

SACRAMENTO – Assemblymember John Laird (D-Santa Cruz) announced Governor Schwarzenegger has signed AB 1283, a bill that re-authorizes and extends by five years Santa Cruz, Monterey and Contra Costa County first-time homebuyer programs that provide low- and moderate-income first-time homebuyers with down payment assistance.
 
“These innovative programs are making a difference for first-time homebuyers struggling to get into ever-costlier housing markets,” said Assemblymember Laird. “In the growing struggle to address the affordable housing crisis, these first-time homebuyer programs are an important part of what should be a comprehensive strategy.”

Relevant statistics
· Santa Cruz County has issued nearly 50 loans under this program.
· Contra Costa county has assisted over 30 first-time homebuyers under this program. Without this provision, Contra Costa estimates that assisting these home buyers could have cost the Agency up to nearly $1.5 million, which was instead used to support other affordable housing efforts.
· Median home price in Santa Cruz County: $750,000 (Apr. 2007)
· Median home price in Monterey County: $660,000 (Jan. 2007)
· Median home price in Contra Costa County: $575,000 (Feb. 2007)

About AB 1283
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. Without re-authorization, programs in Santa Cruz, Monterey and Contra Costa Counties would expire January 1, 2008.