Home » California Bill Allows Undocumented Immigrants Access to Down Payment Assistance for Home Loans

California Bill Allows Undocumented Immigrants Access to Down Payment Assistance for Home Loans

by CC News
Down Payment Assistance

A bill passed the California Legislature this week that will make California the first in the nation to offer down payment assistance to illegal immigrant home buyers.

Under Assembly bill 1840, it grants undocumented immigrants access to the California taxpayer-funded home loan program – which provides up to $150k in down payment assistance for eligible first-time home buyers (those who pay taxes).

The bill, basically says a person who applies for the California Dream for All Program cannot be disqualified because of their immigration status.  AB 1840 was introduced by state Assembly member Joaquin Arambula, D-Fresno

  • August 28 – Passed Assembly Floor in 53-18 vote (locally, Assemblymembers Tim Grayson, Rebecca Bauer-Kahan, Buffy Wicks voted for the bill)
  • August 27 – Passed Senate Floor in 25-14 vote (locally, Senator Steve Glazer voted against the bill)

It is not clear if Governor Gavin Newsom will sign the bill.

California Assembly Republican Leader James Gallagher called the bill “crazy”.

“I didn’t know it was possible to make the border crisis and the housing crisis worse with just one vote, but Democrats found a way. Giving taxpayer-funded housing subsidies to illegal immigrants will drive costs even higher and encourage more chaos at the border,’ said Gallagher.

Assemblywoman Kate Sanchez (R-Rancho Santa Margarita) said via Twitter, “This is an unbelievable betrayal to the citizens of the state” while noting $1 million Californians live in deep poverty and 180,000 are homeless.

On the Assembly Floor, she opposed the bill, “I rise in strong opposition of AB 1840,” said Sanchez. “If you vote yes on the bill, you are encouraging more illegal, no legal, immigration to this state. For the first time in 25-yeas, California is now home to busiest illegal point of entry in the United States. Immigrants look to California current policies like a giant welcome sign. Welcome to California, where illegal immigrants get free health care, free food, and now a free home with 0% down. This isn’t rocket science, if you are giving out free stuff, more people are going to come. If you vote yes on this bill, you are limiting the amount of funds that go to help Californians buy homes.”

Back in June, the Dream for All Program gave 1,700 first-generation buyers the chance to purchase a home. The program provides potential homebuyers with vouchers offering up to 20% of a home’s value for down payment and closing cost assistance. It ran out of funds in less than two-weeks.


LEGISLATIVE COUNSEL’S DIGEST

AB 1840, as amended, Arambula. California Dream for All Program: Home Purchase Assistance Program: eligibility.
Existing law establishes the California Housing Finance Agency in the Department of Housing and Community Development, and authorizes the agency to, among other things, make loans to finance affordable housing, including residential structures, housing developments, multifamily rental housing, special needs housing, and other forms of housing, as specified. Existing law establishes the California Dream for All Program to provide shared appreciation loans to qualified first-time homebuyers, requires the agency to administer a home purchase assistance program for the purpose of assisting low- and moderate-income home buyers to qualify for the purchase of owner-occupied homes, as specified. Existing law establishes the California Dream for All Home Purchase Assistance Fund, which is continuously appropriated for expenditure pursuant to the program and defraying the administrative costs for the agency. Existing law authorizes moneys deposited into the fund to include, among other moneys, appropriations from the Legislature from the General Fund or other state fund. requires, on and after July 1, 2016, unobligated amounts remaining in any fund established for specified purposes to be transferred to the fund for expenditure by the agency for the purposes of the program.
This bill would specify that an applicant under the program who meets all other requirements for a loan under the program, including, but not limited to, any requirements imposed by the Federal National Mortgage Association or other loan servicer, on the agency in administering the program by specified entities, and who is otherwise eligible under applicable federal and state law, shall not be disqualified solely based on the applicant’s immigration status. By expanding the persons eligible to receive moneys from a continuously appropriated fund, this bill would make an appropriation. The bill would recast the fund so that appropriations from the Legislature from the General Fund or other state fund are deposited into the California Dream for All Subaccount, which the bill would create and make available upon appropriation by the Legislature for specified purposes.

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6 comments

Jiveass honky August 31, 2024 - 5:54 am

This is your leaders telling you that ILLEGALS are more important to them than citizens of the USSA. Buying votes , you do know that ILLEGALS vote?

James Spratt August 31, 2024 - 7:10 pm

I am a registered democrat and native Californian, but this goes way too far. If Gavin signs this he can forget about his future in National politics.

William Llewellyn September 1, 2024 - 4:11 pm

Governor Newsom, AB 1840 Is totally crazy!! Someone in this Country illegally gets taxpayer money’s to buy a house. If this was being offered to citizens of the USA only, I am totally for it, it not to someone here illegally. Might as well put a sign at the border “Go to California Everything is given to you FREE!!”

Thad Skupien September 2, 2024 - 4:20 pm

Jeez, does this mean my kids would qualify for the same loan, they’re citizens though, ,employed and have lived in California their entire life.

TSG September 3, 2024 - 2:08 pm

Elections have consequences.

Teresa Hernandez September 5, 2024 - 9:18 pm

Sounds like the banks are all for this bill. Many people who are ‘ illegal ’ immigrants are her on SB1 visas and are staying here applying for citizenship. The public forgets that they are not just criminals but engineers, doctors, professionals, IT experts etc, coming from all over the world. Look around . People coming in over the border with nothing looking for asylum don’t have loads if money for downpayments.

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