Housing: Building Home Ownership for All Program.

Assembly Member Carrillo's proposal to establish the Building Home Ownership for All Program aims to increase affordable housing access through a new tax credit mechanism for financing below-market-rate home construction. The program, to be developed by the State Treasurer in consultation with housing agencies by January 2027, would offset 40 percent of eligible construction costs through tradable tax credits modeled after existing low-income housing programs.

The framework requires housing developed under the program to be priced below market rate and restricted to lower and moderate-income buyers who will occupy the homes. Income and price limits would align with the California Housing Finance Agency's first-time homebuyer programs. The bill authorizes tax credit syndication similar to other residential development financing programs while maintaining resale restrictions to preserve long-term affordability.

Starting in 2028, the Legislative Analyst's Office would conduct annual reviews examining units produced, homebuyer access to below-market purchases, and capital delivery efficiency to builders. The program's authorizing statute contains a sunset provision, repealing it on December 31, 2031. According to the bill's findings, California faces a shortage of 3.5 million homes, with homeownership rates for African American and Latino residents at 35 and 42 percent respectively, compared to national averages of 42 and 47 percent.