Assemblyman Brough Introduces Legislation to Help First-time Home Buyers

SACRAMENTO –Assemblyman Bill Brough (R-Dana Point) introduced AB 2115, which would for the residents of Los Angeles, Orange and San Diego Counties, exempt from gross income any income earned on the moneys contributed to a homeownership saving account (HSA) on or after 1/1/21.

"California's housing crisis has left our state with home values and rents that are the most expensive in the nation, " said Brough. "This bill allows first-time home buyers the option to save money in an account, without it being taxed, in order for the funds to be used as a down payment or for closing costs on a home." 

In a report by the California Association of Realtors, as of December 2019, the median price for a single-family home for the three most populated counties in California are as follows: $840,000 in Orange County, $655,000 in San Diego, and $641,340 in Los Angeles County.

According to the Public Policy Institute of California, homeownership rates in California have fallen and our rates are significantly lower than the rest of the nation. Over the past decade, homeownership rates have declined to 53.6 percent of occupied units.  As owner-occupied units in California have fallen by about 133,500, the amount of rented units has increased by more than 877,000.