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CalHFA explores employer-funded shared-appreciation pilot to help workforce access housing
Summary
CalHFA’s committee reviewed a concept for an employer-funded shared-appreciation loan pilot administered by CalHFA, modeled on Dream For All; staff will negotiate an MOU with the prospective employer and prepare a supplemental funding agreement if negotiations proceed.
The New Opportunities Committee considered a proposed employer-based shared-appreciation pilot in which a major California employer would provide capital to fund shared-appreciation loans paired with CalHFA first mortgages, CalHFA staff said.
Ellen Martin, director of homeownership, said the model is built on the Dream For All shared-appreciation loan structure: the employer would supply the capital for the shared-appreciation portion, CalHFA would pair that funding with a CalHFA first mortgage, and CalHFA would administer and service the program under negotiated agreements. Staff described the pilot as initially small in scale, with program administration funded through CalHFA’s negotiated fees and first-mortgage securitization revenues.
Board members raised legal and equity questions. Director Maria Cabildo asked whether an employee’s departure from the employer would trigger immediate repayment; General Counsel Claire said the employer would not be able to compel immediate repayment upon employment termination and that repayment terms and triggers would be addressed in the MOU and supplemental funding agreement. Directors also asked how partner selection and eligibility would protect CalHFA’s mission: staff said state constraints such as Proposition 209 limit directives that target funds to specific groups, but that outreach and eligibility parameters could be negotiated to align with CalHFA goals.
Staff said it is negotiating an MOU with a potential employer partner and expects to complete the MOU by the end of the calendar year, at which point a funding agreement would follow if the parties proceed. The committee agreed the MOU should be followed by a more detailed funding agreement that specifies servicing responsibilities and eligibility rules; staff were asked to prepare a board report for the September meeting describing progress.
Next steps: staff will continue MOU negotiations, work through partner-selection criteria consistent with state law, and report developments to the committee and the full board.
