The program was meant, in part, to help address California’s ethnic and racial wealth gap, with Black and Latino families having fewer net assets than the national average. Participation in the program was limited to households earning less than 150% of median earnings in their county. According to the initial characteristics shown in the agency document obtained by CalMatters, roughly two-thirds of the beneficiaries went to those making less than $125,000. The average loan was a little more than $112,000.
But those figures also show that the program was disproportionately used by white homebuyers. Senate President pro Tempore Toni G. Atkins, of San Diego, said in a statement Monday that the program was intended to reach those historically shut out of the housing market.
“While this program has been immensely successful in getting new homebuyers into the market quickly and in places with low homeownership 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 had 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 the 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 government talked 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 homebuyer marketplace for a variety of different reasons.”
“You actually can’t do that directly in California“