Posted on 05/11/2022 8:14:35 AM PDT by Wuli
A top California lawmaker is proposing to spend $10 billion to help families buy homes in the state with some of America’s highest housing prices.
Democratic State Senate Leader Toni Atkins on Wednesday unveiled details of a proposal she’s pushing to create a revolving fund that would provide interest-free loans for up to 30% of the purchase price of a home for low- and middle-income households.
[snip]
The median price for single family homes in California last year was $786,000, according to the California Association of Realtors, more than twice the nationwide average.
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Under the proposal, California would spend $1 billion a year for 10 years. Participation would be limited to households making 150% of the median income in an area. There would be limits tied to a region’s median home price allowing home buyers in the most expensive markets such as the San Francisco Bay Area to benefit.
In Los Angeles County, households earning up to $120,000 a year could qualify for assistance, while in low-income areas like the agriculture-heavy Central Valley, that number would be closer to $107,000, according to data provided by the researchers who drafted the framework. Proponents want to target certain groups through outreach, including residents of largely Black and Latino neighborhoods and those with high loads of student debt.
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“There are Californians that work hard every day and because of the high cost of living, they can’t own a home,” she said. “They want to be part of mainstream America too and part of that is defined as being able to own a home.”
(Excerpt) Read more at wsj.com ...
If Californians wanted to lower home prices they'd get the state and local governments to remove tons of regulations and mandates that are restricting building and where not restricting it making it more costly.
But that would help the housing market, help the private sector in doing what it can do, and little chance the Marxist government of California will do that.
Everything government touches becomes astronomically expensive and turns to excrement.
Because subsidies work so well to make college affordable.
10B in califonia is barely 2000 homes. Heh
One wonders, what might be the effect of the increase in demand (and therefore prices) caused by the mega siege of illegal aliens on rent and home purchase costs in the once-golden state?
It’s an attempt to take over the housing market.
One also wonders if “equity” might be a consideration in deciding who gets the interest free loans.
Secret - California has no money unless Greasy Newscum is paying out of his pockets along with Madd Maxine, Vodka Nanzi Pelosi, Adam Schitt, and other corrupt California politicians.
Regulatory costs for a new home are often more than $100,000 with little actual benefit to anyone. “Over five years — from 2016 to May 2021 — the NAHB also found that regulatory costs in an average home built for sale went from $84,671 to $93,879, or a 10.9% increase.”
Whenever there is any type of building boom anywhere building departments add a bunch of new employees. Unlike private industry when the boom ends... these people usually get to keep their jobs and they find new ways to justify them... all of which add to the cost of new houses.
They’ve got a hyper- inflated market with all cash buyers ( mostly from communist China) and prices four times above what most regular professional - level workers can genuinely afford.
That market is vigorous right now but it is, to coin a phrase, a house built of straw without a foundation.
It will crash, and crash worse than the 25 to 50 percent price drop of 2008
Trying to keep the game propped up with another $10 billion of taxpayer money is a prescription for failure. Taxpayers ( and buyers) beware!
There ain’t no such thing as an antigravity machine.
$10 billion? That should buy 7-8 homes in Cali.
“Socialists do not tend to be first in their class when it comes to economics. “
I read a Marxist’s “white paper” on how capitalism is what is wrong with the “global” economy. In it he went back to basic Marxism explaining the application of Marx diatribe on “surplus value” (how the prices of what capitalists sell things for includes value above costs [surplus value] which Marx claimed belonged to “the workers”.
It shows Marx lack of understanding of basic economics. It posits that none of the “surplus value” was derived from the capitalist’s investment in land, plant, equipment, materials, supplies, energy costs, transportation costs, debt costs related to any of that, or anything else the capitalist had to put money into. It presumes all the surplus value comes from the labor and how “the workers” are due most of the return on the “surplus value” [profit].
It is not any wonder socialism does not achieve any economic goals, only the socialists goals on political power.
They (California’s Leftist idiots) are going to depend on the current California budget surplus.
Inflation is going to cause a recession beginning later this year or early next and that will destroy the California budget surplus, further raise the state’s costs, and require increased taxes to pay for all the programs they pass now that are based on the temporary surplus.
“It’s an attempt to take over the housing market.”
No. But, just as similar proposals that subsidize college tuition where the biggest beneficiary was not the students but was instead supporting the extravagent education industrial complex, the California housing subsidy proposal will ONLY help keep up with higher housing prices. In a good market it only will inflate that market by making some percent of the overpriced homes sellable, when they would not be sellable so much if the state was not subsidizing them.
LOL. Government funded crack-party houses where six FOLKS will be shot each weekend.
“Socialists do not tend to be first in their class when it comes to economics.”
Or mathematics, or science, or history, or philosophy.
I have fairly extensive background and experience in engineering mechanical and electrical, chemistry, thermodynamics, programming in dozens of languages. I read extensively and have many interests which are sciency, and like to build things from cars to integrated circuits and even refine precious metals from scrap when I get bored. If I have one more purple haired “studies” major with a nose ring tell me I don’t “understand” the science or other subjects like economics, they will be getting a personal physics lesson about bodies in motion.
That makes sense — these people can’t even pay off their student loans, and the government want to pile on another stack of interest-free taxpayer money that won’t get repaid.
I can tell you in certain local markets in California the illegal population plays a significant role.
10% of Los Angeles County (951,000) is illegal
6% of San Bernardino County (127,000) is illegal
6% of Riverside County (132,000) is illegal
5% of San Deigo County (169,000) is illegal
8% of Fresno County (77,000) is illegal
7.6% of Orange County (236,000) is illegal
4% of Sacramento County (63,000) is illegal
and that is just some examples I took the time to find
add those percentages into markets that enough new residences are not being built, due in some major way to regulatory interferance, state and local, and it is not hard to see that the illegal population is impacting the high housing prices in California
I can remember the housing loan debacle in the early 2000’s.
A developer I know said she could build almost anything -—and IF a ‘buyer’ could “FOG A MIRROR” they got a loan.
At the same time—in Fresno, Calif-—a SEASONAL MIGRANT MEXICAN NON-CITIZEN got a loan on a $650,000 house.
Foreclosure 6 months later-—HE NEVER MADE A SINGLE PAYMENT.
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