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AB 595, a bill introduced by Assemblymember Juan Carrillo (D-Palmdale), California Community Builders and UnidosUS, aims to expand affordable homeownership opportunities for moderate-income Californians and communities of color.

California Yes In My Back Yard (YIMBY), joined Carrillo in Sacramento to introduce the bill, which creates a tax credit for homebuilders constructing income-restricted, for-sale homes.

According to the news release, fewer than 55% of Californians live in homes they or their families own.

People of color face even more challenges, with African American homeownership rates 26% lower and Latino rates 19% lower than those of white Californians.

“AB 595 is a bold step toward changing that reality by making it financially feasible to build the affordable for-sale homes our working families need,” Carrillo said.

The bill directs the State Treasurer’s Office to design the Building Homeownership For All Program, which will incentivize builders to construct affordable homes. Unlike existing programs focused on down payment assistance, AB 595 addresses supply-side challenges by offsetting construction costs.

“This bill is an important step towards making the dream of homeownership a reality for those too often left behind, including the 1.9 million mortgage-ready Latinos in California between ages 18 and 45,” said Esmeralda López, UnidosUS California state director.