Homeownership is one of the fundamentals on which the California Association of REALTORS® (CAR) was founded. Even after more than a hundred years, CAR still retains the principals of homeownership and a belief that homeownership helps to build wealth and to stabilize communities.
Over many years, CAR has supported and sponsored legislation which will help to increase opportunities for homeownership. To this end, on February 15, 2022, CAR signaled their support for AB 2166, a bill which would, if enacted, help increase homeownership opportunities.
As background, under existing law governing the CommunityDevelopment Block Grant Program, the Department of Housing and CommunityDevelopment is required to distribute federal funds in the form of grants to eligible cities and counties to provide housing and economic development, principally for persons and families of low or moderate income. Existing law requires all funds made available under the program to be utilized to provide decent housing, a suitable living environment, and expanding economic opportunities, consistent with federal requirements.
AB 2166 would require the Department of Housing and CommunityDevelopment to prioritize 30% of the federal funding provided under theCommunity Development Block Grant Program for purposes of promoting homeownership for persons and families of low or moderate income. The bill would also require the department to prioritize at least 10% of program funds for down payment assistance for persons and families of low or moderate income.The bill would provide that these requirements be implemented only to the extent that they are consistent with federal requirements.
Existing federal law establishes the HOME Investment PartnershipAct, which allocates funds to states and local governments to, among other things, expand the supply of affordable housing. Existing law designates theDepartment of Housing and Community Development as the state agency responsible for the administration of the state’s allocation of HOME Investment PartnershipAct funds, the provision of technical assistance, and coordination of HOME Investment Partnership Act activities.
This bill would require the Department of Housing and CommunityDevelopment to prioritize 30% of the federal funding provided under the HOMEInvestment Partnership Act for purposes of promoting homeownership for persons and families of low or moderate income. The bill would provide that this requirement be implemented only to the extent that it is consistent with federal requirements.
This bill will provide many families an opportunity to become apart of the American Dream of Homeownership. As AB 2166 moves through the legislative process, CAR will keep REALTOR®members updated and informed on the progress of the bill.