Union News: Home Loan Initiative

Excerpt from an AFSCME sponsored proposed ballot initiative submitted to the state Attorney General on Sept. 5:

Section 9.1 is added to Article IX of the California Constitution to read:

SEC. 9.1 (a) The Regents shall administer a down payment loan program for eligible support staff of the University who are first-time homebuyers. The down payment loans shall:

(1) be equal to twenty percent of the home's value;

(2) be fully repaid along with a proportionate twenty percent share of the appreciated home value when the home is sold or refinanced;

(3) not be funded with taxpayer funds, state General Funds, or student tuition and (4) be made available only to qualified support staff who have worked for the University for at least five years.

(b) Notwithstanding any other provision of this Constitution, on or before January 1 of the year following enactment of this section, the Regents shall make available down payment loans to eligible support staff, subject to requirements that such loans be repaid with a secured shared and proportionate appreciation return on the investment. To avoid impacting the University's educational mission, the Regents shall invest a fraction of the same investment funds that have been used for University homeownership assistance programs.

(c) Beginning in the first fiscal year following enactment of this section, the total number of down payment loans the Regents provide to eligible support staff shall equal the total number of housing loans made to senior executives and faculty during the 2023-24 fiscal year. For each fiscal year thereafter, the total number of down payment loans for eligible support staff shall equal the total number of all housing loans made to senior executives and faculty in the preceding fiscal year, but no fewer than the total number of loans made to senior executives and faculty in the 2023-24 fiscal year...

Full initiative at https://oag.ca.gov/system/files/initiatives/pdfs/25-0018%20%28UC%20Down%20Payment%20Loans%29.pdf.

Note: Gathering sufficient signatures and then promoting ballot initiatives typically involves millions of dollars.