Establishes middle-class homeownership loans to make home financing more affordable for the purchase of a newly constructed home, with no cost to taxpayers

Authorizes $25 billion in revenue bonds to make affordable downpayment assistance loans available to qualified Californians for purchase of eligible homes

Protects taxpayers by requiring bonds to be repaid entirely by home buyers

Addresses California’s housing affordability crisis by encouraging new single-family home construction, bridging the economic gap and removing barriers to homeownership, and creating new homeownership opportunities for middle-class families

Builds 100,000-150,00 new homes, generating significant economic benefits throughout the state

California residents with no more than 200% of area or statewide median income

Borrower must occupy the home and provide at least 3% cash down

Borrower may qualify for loan through cashflow analysis rather than relying exclusively on traditional credit score

CalHFA administers the program and sets loan terms to ensure full repayment of bond proceeds and coverage of program costs

CalHFA to establish consumer protection standards for loan fees and underwriting practices, and disclosure requirements; participating lenders may charge no more than a 0.5% origination fee

Mandates consumer protections, including limits on bank fees and annual independent audits of bond proceeds to ensure transparency and accountability