Somehow California secured over 300 million in tax payer funds to pay for interest free20% down-payments on homes (already available via Freddie Mac and Fannie Mae) and spent it all in a few weeks

Sheer madness. Only those “in the know” took advantage of this tax payer funded “free lunch” that can only further fuel pressures on house prices.

To me, this is simply more evidence of the bastardization of the machinery of government to steal tax payer funds for political allies. It is simply a device intended to legitimize outright theft. Just like BLM.

From here:

CA Housing Loan Program Drained of $300M in Weeks | RealClearInvestigations

“The program, called the California Dream for All program, was intended to provide buyers interest-free loans to help them make up to a 20% down payment on a home. The loans could also be used to cover closing costs. Unfortunately, the program, which opened for applications on March 27, is already out of funds.”

“The size of the average loan amount seems to be contributing to the problem. The $300 million divided by the 2,300 residents taking advantage of the program comes to an average loan of $130,000. By putting a maximum of, say, $100,000 it could have helped over 3,000 people, while still accomplishing its goal.”

130,000 to cover a 20% down-payment = house price of 650,000 bucks. No doubt attracting state, city or local taxes on the inflated property price.

Why not provide a rent subsidy with the 300 million - (which would of course, push up rental costs, but hey, how much more stupid is it?)

You could pay 13,000 a year in loans for rent subsidies for 23,000 rental homes for a year with 300 million - allowing ten times the 2,300 people “assisted” with a down-payment. People could save for the down-payment with the subsidy.

Out of interest, from here:

 Cost of Materials to Build a House: Chicago Home Construction (fortresshome.com)

Excluding land, it costs between 100 and 400 bucks for all the parts and labor to build a house.

“50% of those costs are for materials, and the other 50% is labor, construction equipment, professional services, permits, and other additional fees.”

Call it 250 bucks per square foot. Lots of cheap immigrant labor in California, right?

An average house has about 1,200 for a 2-bed and 1,400 for a 3-bed.

Call it 1,400 per square foot – multiply by 250 and you get 350,000 for a 3-bed house.

Now for land. From here:

How Much Does an Acre of Land Cost in California? – LandZero

Land costs between 5,000 and 12,000 bucks an acre (43,560 square feet) in California. This hides issues like this “A regular residential lot in Atherton is more than most homes in the whole state. In 2018 a 1.43 acre lot sold for $6.9 Million, and no this lot did not have a home on it.”

More detail here:

Ways To Determine Land Prices In California | Real Estate Diary

You pays your money and you makes your choice. People are fleeing the influence of California’s Monster Raving Lunatic Party policies in record numbers.

As British Prime Minister Margaret Thatcher put it “The trouble with socialism is that you run out of other people’s money”, but Winston Churchill put it better “Socialism is a philosophy of failure, the creed of ignorance, and the gospel of envy, its inherent virtue is the equal sharing of misery.”

California is a socialist state that worships the CCP. Small wonder that Obama removed Churchill’s bust from the White House.

Onwards!

Please upgrade to paid, or donate a coffee (I drink a lot of coffee) - “God Bless You!” if you can’t or don’t want to contribute. Coffee donations here: https://ko-fi.com/peterhalligan  - Buying just one Ko-Fi a week  for $3 is 50 bucks more than an annual $100 subscription!