It’s been a roller coaster ride when it comes to California’s housing market. Rumors had been flying that the California Housing Finance Agency (CalHFA) had released a bulletin announcing a new affordable housing scheme. But, it turns out that the rumors weren’t rumors after all.
CalHFA officially released the bulletin and it stated that applicants have until Monday to apply for the scheme. However, as of one hour ago, CalHFA have already rejected all requests, claiming that the funds have been exhausted.
The scheme had allocated $300 million dollars to help only 2300 people buy homes. This is a small number considering the 40 million population in California. It’s a shame that the dream of many potential home buyers is over so quickly, and it’s also a huge disappointment to see such limited funds being used to help so few people.
It’s also worth noting that not a single house in California is currently affordable, so it’s funny to hear that 2300 families among 40 million of population is being considered a success. Two high-rise buildings could have easily housed such a tiny number of people. It’s not hard to read between the lines and see that this was a successful embezzlement, and the money has already been used up.
Good news is that potential home buyers can now search for homes again without worrying about being outbid by more than 50k of the asking price. This program, however, does not address the root cause of California’s housing problem – the lack of supply.
When a loan officer tells you that a lot of people qualify for this scheme, it’s important to be aware of the consequences. In this case, the high demand has resulted in massive stampedes. The dream of affordable housing in California may have been a fleeting one, and it’s a reminder that free stuff eventually runs out.