The California Senate Appropriations Committee has voted to allow illegal immigrants to participate in the state’s zero-down, no-payment home loan program.
This move comes amid the ongoing crisis at the southern border.
According to The Center Square, Assemblymember Joaquin Arambula, D-Fresno, who authored the bill, defended the proposal by stating, “The social and economic benefits of homeownership should be available to everyone. As such, the California Dream for All Program should be available to all.”
“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,” the bill added.
Bill AB1840, which has already passed the state Assembly, is now set to be considered by the full Senate.
The program under discussion allows for applicants to receive “loans” of up to 20 percent of a home’s price, requiring no down payment and no immediate repayments.
Repayment could potentially occur when the home is refinanced, sold, or transferred, with the borrower responsible for the loan amount plus 20 percent of any increase in the property’s value. However, there is no clarity on what happens if the property is kept long-term, as the bill lacks provisions for such scenarios.
The California Appropriations Committee’s analysis has raised concerns about “unknown significant cost pressures,” potentially reaching millions annually, to fund the expanded eligibility under the Home Purchase Assistance Program.
To date, 18,000 individuals have applied for the program, which costs $255 million through a lottery system. Of these, 1,700 winners have received $150,000 each to assist with down payments and closing costs.
