California affordable housing lottery winners asked to pay large down payments
Some of the winners of a lottery for affordable housing in Tustin, Calif., say the developers who held the lottery advertised that the homes would be available with a 3 percent down payment but then asked winners to pay almost 50 percent of the purchase price. Tustin officials say they have received several complaints about the lottery that Lennar Corp. and William Lyon Homes held for below-market homes being built on the closed Marine Corps Air Station site in the city, according to the Los Angeles Times. A spokesman for Lennar says the lottery winners had the opportunity to call the developers to learn about what size down payment they would need, and that some buyers were only required to pay 3 percent down. However, he added that the company should “look at” whether the original ads would be used in future marketing material.