Rep. Carbajal Announces $550,000 in Down Payment Assistance Grants for Central Coast Homebuyers

U.S. Representative Salud Carbajal (CA-24) announced on November 28, 2023 that $550,000 in down payment assistance grants are being awarded to first-time, middle-income homebuyers on California's Central Coast. The funds are distributed through the Federal Home Loan Bank of San Francisco's (FHLBank San Francisco) Middle-Income Downpayment Assistance (MDPA) Program, a pilot initiative launched earlier that year to help address the affordability gap facing aspiring homeowners in high-cost regions.

How the Grant Program Works

The MDPA Program was unveiled by FHLBank San Francisco in May 2023 as a $10 million matching-grant pilot spanning Arizona, California, and Nevada. It is designed to close a persistent gap for middle-income households who earn too much to qualify for many traditional low-income down payment programs, yet still find themselves priced out of today's housing market.

Qualifying buyers can receive a matching grant of up to $50,000 toward the purchase of their first home. The grants are delivered through FHLBank San Francisco's network of member financial institutions, which include participating banks and credit unions on the Central Coast and across the region.

Importantly, the program is funded through FHLBank San Francisco's private member contributions rather than taxpayer dollars.

Who Qualifies

To be eligible for the MDPA grants, applicants must meet all of the following criteria:

• Be a first-time homebuyer as defined by the U.S. Department of Housing and Urban Development (HUD).
• Have total household income between 80.01% and 140% of the HUD-defined Area Median Income (AMI), based on the property's location and adjusted for household size.
• Successfully complete an approved homebuyer counseling or education program.
• Purchase an eligible property to be used as their primary residence in Arizona, California, or Nevada.

By targeting the 80.01%-140% AMI band, the program intentionally reaches families who are often overlooked by other subsidy programs that cap out at 80% AMI.

Why the Central Coast Needs It

California's Central Coast, which includes parts of Santa Barbara, San Luis Obispo, and Ventura counties, continues to see some of the steepest home prices in the state. Rising interest rates have compounded affordability challenges, putting homeownership out of reach for many working households, including teachers, nurses, public safety personnel, and other middle-income earners. The $550,000 announced for the Central Coast represents funding that has been reserved or awarded to help these buyers reach the closing table.

Program Scale and Results

The 2023 pilot deployed the full $10 million across the three-state district, supporting 263 homebuyers through 44 participating FHLBank member institutions. On the strength of those results, FHLBank San Francisco subsequently doubled the program to $20 million in its second year, expanding access for additional middle-income households in 2024.

How to Apply

Because MDPA grants are distributed exclusively through FHLBank San Francisco's member lenders, prospective buyers cannot apply directly to FHLBank San Francisco or to the Congressman's office. Interested Central Coast homebuyers should:

1. Confirm they meet the first-time buyer and income requirements.
2. Contact a participating FHLBank San Francisco member bank or credit union to ask whether they are enrolled in the MDPA Program.
3. Complete a HUD-approved homebuyer education course before closing.
4. Work with the participating lender to coordinate the grant alongside their mortgage application.

Funds are limited and awarded on a first-come, first-served basis through member institutions, so early engagement with a participating lender is recommended.