CHAPTER 12. California Dream for All Program [51520. - 51529.]

Cal. Health and Safety Code - HSC 12.
in effect

Cal. Health and Safety Code - HSC § 51521. Section 51521.

The Legislature finds and declares all of the following: (a) Housing prices in California have risen dramatically in all parts of the state in the past decade, while the wealth gap, especially the racial wealth gap, continues to be a growing problem in California. (b) Households who cannot afford a large down payment to offset the higher prices are increasingly locked out of homeownership. This disproportionately locks out first-time and first-generation homebuyers. This is particularly true for households of color who have faced decades of systemic racial barriers. (c) Thriving in the middle class and building generational wealth, the California dream, starts with homeownership. (d) Therefore, the California Dream for All Program is enacted to establish a revolving, shared appreciation model to make homeownership more attainable for eligible low- and moderate-income first-time homebuyers. (e) In a typical example, the program could provide 20 percent toward the purchase price and the homebuyer would finance the remaining 80 percent with a traditional mortgage. This would result in the first-time homebuyer purchasing the home with a low downpayment, while also lowering monthly mortgage payments by more than thirty percent compared with existing traditional low downpayment programs, a savings of more than $12,000 per year. Once the house is resold or refinanced, the program would be reimbursed for the 20 percent share, and the proceeds would revolve through the program to support additional first-time homebuyers.

Cal. Health and Safety Code - HSC § 51522. Section 51522.

For the purposes of this chapter: (a) “First-time homebuyer” has the same meaning as defined in Section 50068.5. (b) “Fund” means the California Dream for All Fund. (c) “Program” means the California Dream for All Program. (d) “Shared appreciation loan” means a deferred-payment subordinate mortgage loan, the repayment of which is based on the amount of the subordinate loan plus the appreciation in the value of the home financed by the loan from the time of purchase to the time the home is sold or refinanced.

Cal. Health and Safety Code - HSC § 51523. Section 51523.

(a) The California Dream for All Program is hereby established to provide shared appreciation loans to qualified first-time homebuyers. The program shall be limited to providing assistance to low- and moderate-income homebuyers in the purchase of owner-occupied homes. The agency, subject to the availability of funds for the purposes of this chapter, shall implement and administer the California Dream for All Program in accordance with this chapter. (b) (1) In implementing this part, the agency shall adopt policies, rules, and regulations by resolution of the board of directors of the agency and consistent with this part to achieve all of the following: (A) Provide assistance to meaningfully expand access to homeownership. (B) Expand opportunities for California households to accumulate wealth for themselves and their families. The agency shall make any necessary program adjustments consistent with the requirements of this chapter, which may include limiting the percentage of appreciation payable under the program, to ensure that design of the loan product is not an unreasonable impediment to homeowner wealth creation. (C) Maximize the number of households assisted over time by exploring and implementing methods for selling subordinate second mortgages originated pursuant to this chapter to investors in order to generate additional funding for the program. (D) Establish a revolving, shared appreciation first-time homebuyer program with the goal of eventually providing up to one billion dollars ($1,000,000,000) per year for first-time homebuyers. (E) The amount of assistance shall only be made available in conjunction with first mortgage loan financing provided by the agency, and funds available pursuant to this chapter shall also be available for interest rate buydowns and closing cost assistance for that first mortgage loan financing. Any funds made available for interest rate buydowns shall be made in conjunction with a shared appreciation loan. (F) All repayments shall be deposited into the fund for ongoing use in the program. (G) Sustainability for the agency without significantly adversely affecting its borrowing capacity or ability to meet other affordable housing or agency needs. (H) Adequate consumer protection and consumer disclosure protections. (2) Policies, rules, and regulations adopted pursuant to this part shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.

Cal. Health and Safety Code - HSC § 51524. Section 51524.

(a) (1) There is hereby established in the State Treasury the California Dream for All Fund. (2) Notwithstanding Section 13340 of the Government Code, all moneys in the fund are continuously appropriated to the agency, without regard to fiscal years, for expenditure pursuant to this chapter and defraying administrative costs of the agency. (3) Notwithstanding Section 16305.7 of the Government Code, any interest earned or other increment derived from investments made from moneys in the fund shall be deposited in the fund. (b) Moneys deposited in the fund may include appropriations from the Legislature from the General Fund or other state fund, proceeds from the agency issuing revenue bonds for the purposes set forth in this chapter pursuant to Section 51350, the sale or issuance of any debt instrument secured by repayment of loans originated pursuant to this chapter, and repayments from the program.

Cal. Health and Safety Code - HSC § 51526. Section 51526.

(a) The agency shall, on or before January 10, 2023, and annually thereafter, furnish a report to the Legislature providing details of program implementation, including, but not be limited to, the number of loans made and the characteristics of the borrowers. (b) The report required by this section shall be submitted pursuant to Section 9795 of the Government Code.

Cal. Health and Safety Code - HSC § 51526.1. Section 51526.1.

(a) The agency, in consultation with the staff of the Legislative Analyst’s Office, the Senate Committees on Banking and Financial Institutions, Budget and Fiscal Review, and Housing, and the Assembly Committees on Banking and Finance, Budget, and Housing and Community Development, shall do all of the following: (1) Assess outcomes and lessons learned from the first two rounds of the program. (2) Provide recommendations for further improvements to the existing program. (3) Develop options for the next phase of the program, including, but not limited to, an option to expand the program to enable participation by entities such as local governments, public institutions of higher education, nonprofit organizations, school districts, community foundations, and large private employers. (b) (1) On or before January 31, 2026, the agency shall furnish a report to the Legislature detailing its assessment, options, and recommendations, pursuant to subdivision (a). (2) A report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code. (c) This section shall remain in effect only until January 1, 2027, and as of that date is repealed.

Cal. Health and Safety Code - HSC § 51527. Section 51527.

(a) (1) The agency shall develop a borrower education program and disclosure statement designed to provide a borrower with sufficient information to understand the terms of a shared appreciation loan provided pursuant to this chapter. (2) The disclosure statement required by this subdivision shall include the specific terms of the shared appreciation loan offered to the borrower. (b) (1) Before making a shared appreciation loan, a participating lender shall provide a borrower with information to access the borrower education program and disclosure statement developed pursuant to subdivision (a). (2) A participating lender shall require the borrower to acknowledge the receipt of the disclosure statement developed pursuant to subdivision (a) before closing the loan. (c) (1) The agency may use program funds to design and implement an ongoing borrower outreach program that provides regular disclosures or loan counseling services to a borrower while the borrower has a shared appreciation loan outstanding. (2) The purpose of the ongoing borrower outreach program authorized by this subdivision shall be to encourage a borrower to satisfy the shared appreciation loan in a manner that is in the best interest of the borrower. (d) (1) The agency may meet its obligations under this section by partnering or contracting with housing counselors, community organizations with expertise in housing and mortgage finance, or any other person with expertise in housing or mortgage finance. (2) In exercising its authority under this subdivision, the agency shall take reasonable efforts to ensure that any person or organization that assists the agency in meeting the agency’s obligations under this section is free of any conflicts of interests.

Cal. Health and Safety Code - HSC § 51528. Section 51528.

(a) The agency shall evaluate options to finance the program with one billion dollars ($1,000,000,000) to two billion dollars ($2,000,000,000) annually. Options evaluated may include, but are not limited to, the issuance of revenue bonds, general obligation bonds, or other debt instruments, or other available alternatives. (b) In developing the scope of the evaluation required by this section, the agency shall consult with the State Treasurer, the Legislature, and any other relevant stakeholders. (c) On or before March 1, 2024, the agency shall submit a report on the evaluation to the Legislature in accordance with Section 9795 of the Government Code.

Cal. Health and Safety Code - HSC § 51529. Section 51529.

Prior to the disbursement of the remainder of funding for the program appropriated in the 2022 Budget Act, and prior to the disbursement of any funding for the program that may be appropriated in the 2023 Budget Act, the agency shall review the program terms and parameters, and shall implement adjustments designed to achieve the following program improvements: (a) Defining first-generation homebuyers. (b) Targeting funds to aid first-generation homebuyers. (c) Supporting an equitable distribution of program funds in different regions of the state. (d) Prioritizing participation by homebuyers in the lower tiers of the income eligibility structure.
Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026

Starting a business in California? California LLC guide: costs and requirements