Letter: Support the Creation and Funding of Down Payment Assistance Program

On January 7, the council will consider a city ordinance to create a Down Payment Assistance (DPA) Program—an initiative that can open doors for first-time home buyers, particularly young families who can afford mortgage payments but struggle to save for a down payment.

DPA programs bridge this gap, offering loans that help families achieve the stability of home ownership and the potential for wealth building through property appreciation. Proven successful in other cities, DPA programs promote workforce housing, increase diversity, and offer a critical step toward addressing economic inequities.

These programs are flexible—structured as repayable loans or equity-sharing agreements—and the payments plus interest, equity or both are paid back into the City Housing Trust Fund, creating a sustainable cycle of assistance. Prioritizing workforce families who live and work locally could also reduce greenhouse gas emissions by shortening commutes.

With Measure Q’s passage in November, the city will have access to $11 million yearly in new funds.  While there are many critical needs in our city, both our Housing Element and the Housing Trust Fund Appendix A of the Housing Element acknowledge the need for supporting first-time home buyers.  Allocating $1 million yearly to the DPA program could support 50 families with a $20,000 DPA—an impactful investment that strengthens our schools, diversifies our community, and enables wealth-building for those often excluded from home ownership opportunities.

Carpe diem—let’s seize this moment. Join Interfaith Housing Justice Davis and urge the council to create and fund a Down Payment  Assistance Program. Together, we can make home ownership a reality for more Davis families.

Author

Categories:

Breaking News City of Davis Opinion

Tags:

1 comment

  1. I took a quick look on Zillow and there are three properties with at least 3 bedrooms below $600,000 and list price that are not in Rancho Yolo. An estimated traditional mortgage would be around $4000 a month today.

    The above proposals is subsidizing demand in a highly supply constricted community. I’ve been commuting to Davis daily for 14 years from Sacramento and above mortgage price is still outside of my range of what my family can afford with two kids and professional jobs between my partner and I.

    For those lucky few that may get that $20,000, it would surely help them however it would be a nudge to continue to raise prices for everybody else not lucky enough to be one of the 50 families to get that subsidy lottery ticket.

    It’s still confuses the heck out of me by why not every city leader and activist in this wealthy high opportunity town tries to work towards building enough homes so all community members can live here not just those that make enough to afford a $4000 a month mortgage. Trump won because many people in California can’t afford to live here and subsidizing demand will have a lucky golden ticket for a few people while raising prices for everybody else.

Leave a Comment