A California bill that would allow home loans for illegal immigrants faces strong opposition from state Republicans. Assembly Bill (AB) 1840, which passed in the Senate Appropriations Committee last week, faces a floor vote in the state Senate and potentially a signature by Gov. Gavin Newsom to become law.
Assemblymember Joaquin Arambula (D) introduced the bill in January. It broadens the definition of a first-time homebuyer to include an “undocumented person.”
AB 1840 would prevent the California Dream For All Shared Appreciation Loan program from denying individuals based on their immigration status. About 2 million illegal aliens live in California, according to the Pew Research Center.
The loan program launched in 2023 and provides first-time homebuyers with a loan of up to 20% of the home’s purchase price for down payment or closing cost assistance.
When the qualified homeowner sells or transfers the home, they repay the down payment, as well as a share of the home’s appreciation, according to the California Housing Finance Agency.
“When undocumented individuals are excluded from such programs, they miss out on a crucial method of securing financial security and personal stability for themselves and their families,” Arambula said in a statement to The Center Square.
Arambula didn’t respond to HousingWire’s request for comment. Newsom didn’t respond to a request for comment on whether he would sign the legislation.
Opponents of the bill say that expanding the program to include illegal immigrants would exert financial burdens onto law-abiding taxpayers when California is experiencing a massive budget shortfall.
“California’s budget deficit continues to grow and Democratic lawmakers are so out of touch with everyday Californians that they are quite literally taking money away from law-abiding citizens, their own constituents, and handing it over as a free gift to people who broke federal law to cross the border illegally,” state Sen. Brian Dahle said in a statement.
“Once again, California has chosen to prioritize illegal immigration and fiscal irresponsibility over the needs of its citizens, all while facing a $60 billion deficit that will ultimately be passed onto taxpayers,” San Diego County Supervisor Jim Desmond added.
When applications opened in May 2023 for the $300 million program — which offered interest-free loans to about 2,300 middle- and lower-income buyers — the fund ran out in less than two weeks, the Los Angeles Times reported.
