Press Releases

Today, U.S. Representative Salud Carbajal (D-CA-24) hosted a press conference in Santa Barbara on the introduction of his American Dream for All Act. The legislation would help first-time homebuyers purchase homes by creating a federal pilot program that provides down payment assistance loans. The legislation is inspired by the successful California Dream for All Shared Appreciation Loan Program. Carbajal was joined by leaders from the Santa Barbara Association of REALTORS. Download photos here.

“Across the Central Coast and the country, the dream of owning a home is becoming an uphill battle for countless families,” said Rep. Carbajal. “I’m introducing the American Dream for All Act to help make homeownership a reality for first-time homebuyers. My bill will provide the next generation the support they need to overcome the steep cost of a down payment and take their first steps toward achieving the American Dream.”

“For many Americans that rent today, the monthly cost of homeownership is within reach, but the upfront down payment remains the biggest hurdle. This bill will help first-time homebuyers overcome that obstacle and will allow people to achieve the dream of homeownership. The American Dream for All Act is a forward-thinking bill because as a revolving loan it helps potential homeowners achieve their goal, not just today, but for years to come,” said Santa Barbara Association of REALTORS® President-Elect Jennifer Berger. “We are proud to partner with Congressmember Carbajal in making the American Dream a viable reality for all Americans.” 

“The National Association of REALTORS® (NAR) strongly supports every effort to make housing more affordable. The America Dream for All Act is a novel approach to easing the financial burden of a downpayment. NAR applauds the leadership of Rep. Carbajal for promoting shared appreciation lending programs to help first-time buyers and for expanding upon the highly popular California Dream for All program. This legislation is complementary to traditional downpayment assistance programs and provides a return to the federal government in the form of a percentage of the home’s appreciation upon sale, making it a win-win for potential buyers, the economy, and the American people,” said Kevin Sears, President of the National Association of Realtors®.

According to the National Association of REALTORS, first-time buyers made up 24 percent of all home buyers, a decrease from 32 percent last year. Seventy-one percent of Younger Millennials, 62 percent of Gen Z, and 36 percent of Older Millennials were first-time homebuyers.

The American Dream for All Act would create a pilot program at the U.S. Department of Housing and Urban Development to provide funding to states, territories, and Tribes to establish a shared appreciation downpayment assistance loan program for first-time and first-generation homebuyers.

Under this plan, the participating housing finance agency (or equivalent agency) would provide eligible borrowers with a downpayment loan to purchase a home. They would be able to provide a borrower a down payment loan up to 20% of the home. 

When the borrower sells the home, the borrower is then required to pay back the downpayment as well as a percentage of the appreciation in the home back to the eligible entity to be readministered for future down payment loan assistance for other borrowers. The percentage of appreciation to be paid will match the percentage the borrower received as the downpayment loan for the original cost of the home. (e.g., in exchange for 20% of the downpayment in the form of a silent second, the eligible entity gets 20% of the appreciation; for a 10% downpayment, the Eligible Entity gets 10% of the appreciation, etc.). 

An eligible borrower must meet the following criteria:

• (1) is a citizen or permanent resident of US, 
• (2) is a first-time homebuyer and/or first-generation homebuyer, 
• (3) has completed a buyer education course, 
• (4) has a certificate of completion from a housing counseling agency, and 
• (5) has an income not more than 150% of area median income (AMI), must self-attest they don’t have the ability to pay more than 5% of total value of home for which the loan under this section is used.