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AB 595

Housing: Building Home Ownership for All Program.

2025-2026 Regular Session Introduced by Juan Carrillo

AB 595 would create a time-limited tax credit program to attract private capital for income-restricted for-sale homes, expanding affordable home ownership for lower- and moderate-i

From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
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Bill Summary · AB 595

AB 595 — Building Home Ownership for All Program (Carrillo) — Summary

Summary / Purpose

AB 595 would direct the State Treasurer, with consultation from the California Housing Finance Agency (CHFA), the Department of Housing and Community Development (HCD), and other stakeholders, to design a time‑limited program that uses tradable tax credits to finance the production of income‑restricted for‑sale homes. The stated goals are to expand access to home ownership, especially for households historically excluded (including communities of color and those affected by disasters, student debt, or the Great Recession), and to maximize wealth‑building by making homes affordable to lower‑ and moderate‑income Californians.

Key provisions

  • Requires the Treasurer, upon legislative appropriation, to develop the "Building Home Ownership for All Program" by January 1, 2027, in consultation with CHFA, HCD, and other relevant stakeholders.
  • Creates a tax‑credit based financing tool modeled on programs such as the federal/state Low‑Income Housing Tax Credit (LIHTC) and the New Markets Tax Credit:
    • Tradable, syndicable (and resyndicable) tax credits that investors can purchase to bring private capital into projects.
    • Tax credit allocation sized to offset the equivalent of 40% of a project’s eligible costs.
    • Program structure tailored to income‑restricted for‑sale housing, with resale restrictions consistent with CHFA first‑time homebuyer programs (e.g., California Dream For All).
    • Income and home price limits for eligibility will follow CHFA’s first‑time homebuyer program limits.
  • Program design must prioritize efficient review and allocation, ensure housing is priced below market so tax credit value is passed through to buyers, and avoid reducing funding for existing rental programs.
  • Targets assistance toward households facing generational barriers to home ownership (references systemic racism, redlining), and other priority groups named in the bill.

Oversight, evaluation, and duration

  • Requires the Legislative Analyst’s Office (LAO), in collaboration with the California Tax Allocation Committee, to review program effectiveness beginning January 1, 2028, and annually thereafter.
  • Provisions are set to be repealed on December 31, 2031 (sunset).

Who would be affected

  • State actors: Treasurer (lead), CHFA, HCD, Legislative Analyst’s Office, California Tax Allocation Committee.
  • Private sector: homebuilders/developers, investors who buy tax credits, syndicators.
  • Homebuyers: lower‑ and moderate‑income (and referenced moderate/middle‑income) first‑time and priority purchasers—particularly communities historically excluded from home ownership.
  • Budget: implementation requires a legislative appropriation; the bill has fiscal committee review.

Procedural status (selected)

  • Introduced Feb 13, 2025. Amended and moved through Assembly Housing & Community Development and Appropriations in spring 2025.
  • May 23, 2025: In committee — Held under submission (current status).

Potential impacts / considerations

  • If funded and implemented, the program could expand subsidized entry‑level for‑sale housing and attract private capital through tax credit syndication, potentially lowering purchase prices for eligible buyers.
  • Actual scale depends on legislative appropriation, credit pricing, investor demand, and precise income/price limits (which the bill ties to CHFA standards).
  • Interactions with existing programs (CHFA products, rental subsidies, federal mortgage insurance) and market effects on for‑sale inventory and valuations would require careful design and oversight as noted by mandated LAO reviews.

Compiled from official sources — confirm details with the bill’s official record.

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