“While this program has been immensely successful in getting new homebuyers into the market quickly and in places with low home ownership rates like the Central Valley, clearly more work needs to be done to make sure that there is statewide awareness, particularly in communities of color, Atkins said.
The fact that the program ran out of cash in a two-week spree speaks to just how voracious demand is for housing in California. It also suggests that some of the people who made use of the program were already well into the house-hunting process.
That raises an important question: How many of the people who benefited from the loan program actually needed the help and how many would have purchased a home anyway?
“I would guess that 30% to 50% of the people who are using it could qualify or buy without it because I have plenty like that,” said Matt Gougé, a Sacramento loan officer, referring to his own clients.
California prohibits affirmative action, limiting the housing agency’s ability to direct money to communities of color.
“We’d like to do something we’re not allowed to do in California, and this is not the fault of CalHFA or anybody else,” said Micah Weinberg, chief executive of California Forward, a nonprofit hired by the state treasurer to create an initial framework for the program. “When those of us outside of the government talk about what the intention of the program is — it is to really, very specifically, target those demographic communities, African Americans and others — who have been locked out of the home-buyer marketplace for a variety of different reasons.”
“You actually can’t do that directly in California,” he said.
Who got California first-time home-buyer loans?
Demographic data in the document obtained by CalMatters showed that 65% of initial buyers identified as white, 18% as Asian, 4% as Black, 1% as Native Hawaiian or Other Pacific Islander and 1% American Indian or Alaskan Native. Ethnically, 62% of homebuyers identified as not Hispanic or Latino while about 34% did. The document indicated that some of the data was preliminary and might change once all transactions are closed.
Eric Johnson, an agency spokesperson, confirmed on Monday that the program would be paused until more funding could be allocated. He pointed to the fact that 25% of homeowners in California were of Hispanic or Latino origin, and said the fact that 34% of the loans were made to these groups meant the program was “outperforming in that category.” Asian families make up about 16% and Black families about 4%.