This is throwing fuel on the fire, not only by increasing demand in an already supply-constrained environment, but by the government of california committing $3

This is throwing fuel on the fire, not only by increasing demand in an already supply-constrained environment, but by the government of california committing $300M to fairly-directly invest in residential real estate. It's also not entirely clear what happens to the state's "20% cut of appreciation" if the home value drops. I suspect the state isn't going to take a haircut off their initial loan amount.