STATEMENT: Councilwoman Rodriguez Calls for Matched Savings Account to Help Low and Moderate Income First-Time Homebuyers

Councilwoman Monica Rodriguez introduced legislation instructing city agencies to report back on the feasibility of establishing an Individual Development Accounts (IDA) Program -- matched savings accounts provided to low and moderate income earners to save toward purchasing a home. The IDA program will complement existing City resources for first-time homebuyers.

FOR IMMEDIATE RELEASE:  June 20, 2018
Press Contact:
Tran Le, tran.le@lacity.org
213-257-0475

COUNCILWOMAN RODRIGUEZ CALLS FOR MATCHED SAVINGS ACCOUNT TO HELP LOW AND MODERATE INCOME FIRST-TIME HOMEBUYERS

Los Angeles - Councilwoman Monica Rodriguez introduced legislation instructing city agencies to report back on the feasibility of establishing an Individual Development Accounts (IDA) Program -- matched savings accounts provided to low and moderate income earners to save toward purchasing a home. The IDA program will complement existing City resources for first-time homebuyers.

The City’s Low Income and Moderate Income Purchase Assistance Programs for first-time homebuyers provide loans to cover the down payment and closing and acquisition costs. Qualifying participants must contribute a minimum of one percent of the home price towards the down payment. Given the median home price in Los Angeles County, a one percent contribution towards the down payment is approximately $5,700. However, with rising housing costs throughout California, nearly one-third of Angeleno renters spend 50 percent or more of their monthly income on rent and Los Angeles has the lowest per capita homeownership rate of any major American city.

“Homeownership is a cornerstone of our economy, but far too many in our community do not have the ability to attain this goal,” said Councilwoman Rodriguez. “We have a duty to bridge the housing gap and support a pathway for working families to fulfill their dream of homeownership.”

The Councilwoman’s motion coincides with National Homeownership Month -- a month-long celebration in June dedicated to recognizing the importance of homeownership. Read the Councilwoman’s motion, here.

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Los Angeles City Councilwoman Monica Rodriguez represents the 7th Council District in the Northeast San Fernando Valley which include the neighborhoods of Sylmar, Mission Hills, Pacoima, Lake View Terrace, Sunland-Tujunga, North Hills, Shadow Hills, and La Tuna Canyon.