How it works
DALP is San Francisco's signature homeownership program — the largest city-level DPA in the United States by dollar amount. MOHCD administers it through an annual lottery system because demand dramatically exceeds the fund pool.
DALP's structure mirrors Dream For All: silent second, no monthly payment, shared-appreciation repayment at sale or refinance. The differences are the absolute scale ($500K vs $150K), the geographic limit (SF only), and the priority categories (SFUSD teachers, city employees, displaced residents get preference in the lottery).
For a San Francisco first-time buyer who qualifies and gets selected, DALP is transformative. On a $1.2M SF purchase with 20% down, DALP can contribute $240K of the $240K required down payment — borrower effectively buys with zero down plus their 5% minimum contribution. Shared-appreciation repayment at sale is the trade — but for a household who'd otherwise be priced out of the city entirely, the deal is overwhelmingly favorable.
Who it's for
San Francisco first-time buyers under 175% of AMI planning to stay in the city long-term.
Eligibility at a glance
- First-time buyer?
- Yes
- FTB definition
- Has not owned in past 3 years.
- Minimum FICO
- 640
- Income limit
- Household income at or below 175% of SF-area AMI — approximately $280K for a family of 4 in 2026.
- Homebuyer education
- Required — MOHCD-approved course.
- Minimum borrower contribution
- 5% of purchase price.
- Priority categories
- San Francisco Unified School District teachers, City employees (police, fire, essential workers), Displaced SF residents (priority preference)
Repayment terms
Silent second with shared-appreciation repayment. No monthly payment. At sale, refinance, or end of owner-occupancy, borrower repays original amount plus a proportional share of appreciation (based on DALP's share of purchase price).
Term
40 years
Interest
0% (deferred)
Due at
Sale, refinance, or end of owner-occupancy
Property rules
- Eligible property types
- Single-family residence, Condo, TIC, BMR unit
- Maximum purchase price
- MOHCD annual sales-price limit — typically over $1.5M.
- Owner-occupancy required
- 40 years
Layering & first mortgage options
Works with these first mortgages: Conventional, FHA
DALP typically stands alone on the DPA side — the assistance amount is so large that other programs add little marginal benefit. MCC can still be layered for tax benefit.
Stacks with
How to apply
Process: MOHCD lottery system — borrowers apply, meet preferences, and enter a lottery pool. Selected applicants have 6 months to find a home and close.
Funding cycle: Annual lottery — applications typically open in spring, lottery draws in fall. Check MOHCD for current status.
Typical timeline: 60-90 days from lottery selection to close.
Things that trip borrowers up
- Lottery odds are low — typically 5-10% of applicants get selected each round.
- Sales price limit is generous but still binding — many SF homes exceed the cap.
- Shared appreciation math can be aggressive in a fast-appreciating SF market — position honestly.
Frequently asked questions
- How does the DALP lottery work?
- MOHCD runs an annual lottery each spring. Applicants who qualify on income, credit, and first-time-buyer status enter a pool. Priority categories (SFUSD teachers, SF city employees, displaced residents) receive preference weighting. Selected applicants have 6 months to find a home and close.
- Can I use DALP outside San Francisco city limits?
- No. DALP funds are restricted to purchases within the City and County of San Francisco boundaries. For Oakland, use Oakland's KBHPI or Keys to Equity. For Daly City or Millbrae, check San Mateo County programs.