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Sacramento – Senator Rosilicie Ochoa Bogh (R-Yucaipa) has introduced the First-Time Home Buyer Opportunity Act (Senate Bill 601) to incentivize homeowners to sell their homes to first-time buyers by increasing the capital gains exclusion on homes sold to first-time buyers.
“Housing that is affordable in our great state is sadly out of reach for many Californians. It is time to remove barriers to homeownership and help hardworking families looking to buy their first home,” said Senator Ochoa Bogh. “That is why I have proudly introduced Senate Bill 601 to incentivize sellers to sell their homes to first-time homebuyers.”
California is in the midst of a housing crisis. Median home prices for a single-family home top the $600,000 price range, more than twice the national average. The lack of housing supply to meet the drastic demand is unprecedented.
Our state has continuously been ranked the toughest state in the nation for first-time home buyers due to the relatively high cost of housing, the tight market for available entry-level homes and the struggle that young Californians face in saving for a down payment.
The First-Time Home Buyer Opportunity Act is the first step in leveling the playing field for first-time homebuyers. It would grant homeowners who sell their homes to a first-time homebuyer the ability to exclude capital gains of $300,000 for single filers instead of the current $250,000 maximum and $600,000 for joint filers instead of the current $500,000 maximum from their gross income.
“Affordability continues to hamper Californian's ability to buy a home,” Said Ochoa Bogh. “While only a first step, SB 601 would provide first-time homebuyers help achieving the American Dream of homeownership.”