The high cost of living in California is not a recent development. In 1941, during World War II, Dr. Samuel May of the University of California testified before state legislators about the financial demands on residents. "Housing costs have jumped, population has increased, and many communities are finding it impossible to cope with the financial problems involved,” he said.

Housing costs are still high but today there are several programs to help potential home buyers. One, AC Boost, specifically addresses the high cost of home ownership in Alameda County. Having enough money for a down payment can be a huge barrier for many who want to buy a home. The AC Boost program helps “boost” eligible home buyers over the down-payment barrier by letting them borrow up to $210,000 in the form of a shared appreciation down payment assistance loan.

No payments are due during the term of the down payment loan, which makes purchasing a home more affordable. Instead, the 30-year, interest-free loans are repaid when the loan term has ended. Borrowers must pay a proportional share of the increase in the value of their home as well as the amount borrowed. Repayment is due earlier if a home is sold before the 30-year term ends, an owner takes cash out of the home by refinancing, or an owner stops occupying the home.

“For example: if the AC Boost loan was for 15% of the home purchase price, the homeowner would repay the original loan amount plus 15% of any increase in the home’s value,” explain Alameda County officials. “This allows AC Boost funds to continue to serve new households as home prices rise in Alameda County. At the same time, the program allows the homeowner to benefit from a meaningful share of the appreciated price.”

AC Boost, which began in 2019, is funded by Alameda County’s 2016 Measure A1 Housing Bond. The program is administered by nonprofit Hello Housing. “Eligible buyers must currently live or work in Alameda County or have been displaced from a home in Alameda County in the last 10 years,” according to the Alameda County Housing and Community Development Department. “A preference is available for First Responders and Educators, including licensed childcare providers.”

Participating in the AC Boost program is a 10-step process. The first step is for interested potential home buyers to submit a pre-application by May 15, 2024 to be entered into a random lottery. Those with top-ranking lottery numbers are required to attend a mandatory workshop, then invited to submit a full application with supporting documentation within a certain period.

The first round of funding, several years ago, helped 78 households buy homes throughout Alameda County. Those accepted by the program are grateful for the opportunity to buy their own home. As one anonymous beneficiary told Hello Home officials, "I worked hard and saved up for a down payment, but it was never enough, and prices kept going up. Eventually I gave up because I was stuck in between. I made too much to qualify for low-income programs but not enough to actually be able to afford a house in the Bay Area. Luckily, AC Boost came along and opened the door for people like me to be able to own a home. I’m now confident that I’ll be able to build wealth and stability for me and my son.”

For more information about the AC Boost program, please visit www.acboost.org.