Assembly Member Jackson's California First Time Homeowner Dream Act creates two parallel mechanisms to facilitate first-time home purchases: an environmental review exemption for specific single-family dwellings and a property tax deferral program. The legislation establishes criteria for newly constructed homes of 1,500 square feet or less with no more than three bedrooms, intended for sale below $400,000 to first-time buyers.

Under the environmental provisions, qualifying projects receive an exemption from California Environmental Quality Act review requirements when developers provide sufficient legal commitments as determined by the lead agency. The lead agency must file exemption notices with both the Office of Land Use and Climate Innovation and the county clerk. For the tax component, property owners may defer payments without penalties or interest until ownership changes, provided they request deferral within 30 days of the initial tax bill and meet specific criteria regarding property use and intended sale parameters.

The tax deferral program requires property owners to notify assessors within 45 days of events that would end the deferment, including property rental, occupancy changes, or listing the property above the $400,000 threshold. Deferred taxes become payable in two installments after a triggering event, with specific deadlines tied to billing dates. The legislation includes provisions for state reimbursement to local agencies and school districts for costs associated with implementing these new requirements.