California Congressman Pledges $550,000 for Central Coast Homebuyers’ Downpayments
Congressman Salud Carbajal (CA-24) has taken a significant step to address the housing crisis on California’s Central Coast by announcing $550,000 in downpayment assistance grants for middle-income first-time homebuyers. These grants, provided through the Federal Home Loan Bank of San Francisco (FHLBSF), aim to support aspiring homeowners who are struggling to keep up with rising home prices and interest rates, making homeownership seem increasingly out of reach.
The initiative, consisting of 11 awards for Central Coast homebuyers, is part of a new pilot program launched by the federally-backed FHLBSF. It seeks to provide matching grants of up to $50,000 per household in California, offering a lifeline to those who dream of owning a home. Importantly, these funds are not derived from taxpayers but rather from private support through the bank’s partner institutions.
Congressman Carbajal emphasized the urgency of addressing the housing crisis, stating, “Owning a home is a dream that is becoming less and less of a reality for Central Coast residents, and a primary obstacle is the down payment required by homes whose prices have been rising to even more unobtainable levels with rising interest rates.” He praised federally-backed banks for exploring innovative ways to support housing accessibility and help alleviate California’s deepening housing crisis.
Teresa Bryce Bazemore, CEO and president of FHLBank San Francisco, reiterated their commitment to fostering homeownership for working-class communities in the region. She highlighted the importance of the Middle-Income Downpayment Assistance Program, which was launched in May, and its role in increasing the bank’s investment in homeownership and other programs that benefit underserved communities. Bazemore expressed gratitude for Representative Carbajal’s support and the enthusiastic participation of member lenders in California, which contributed to the program’s success in its inaugural year.
The housing affordability crisis in California is stark. According to the California Association of Realtors, fewer than 15 percent of homebuyers could afford a median-priced, existing single-family home in the state from July to September 2023. San Luis Obispo and Santa Barbara counties were identified as some of the least affordable counties in California, with both requiring a minimum income of at least $226,800 to purchase a median-priced home. Ventura County also scored below the statewide average, with only 13% of homebuyers able to afford a home during the same period in 2023.
Congressman Carbajal’s efforts to secure downpayment assistance grants for Central Coast residents reflect a proactive response to the housing crisis, aiming to provide relief to those who aspire to become homeowners in a challenging real estate market.
