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California Bill Proposes Home Loans for Undocumented Immigrants. A new bill moving through the California Legislature could allow some undocumented immigrants to obtain loans to purchase homes. This legislation, Assembly Bill 1840, is generating significant debate among lawmakers and residents alike.
The bill clarifies that individuals applying for loans under the California Dream for All Program cannot be disqualified based solely on their immigration status. The bill recently passed the state Senate with a 25-14 vote, bringing it one step closer to becoming law.
The California Dream for All Program, managed by the California Housing Finance Agency. It is designed to provide homebuyers with shared appreciation loans. These loans do not accrue interest. Instead, borrowers repay the original loan amount plus 20% of any increase in the home’s value. This loan can cover up to 20% of the purchase price or a maximum of $150,000. which can be used for a down payment or closing costs.
To participate, borrowers must also secure a 30-year fixed-rate mortgage from the California Housing Finance Agency. Payments on the shared appreciation loan are deferred until the primary mortgage is paid off.
Governor Gavin Newsom has praised the program, stating, “As part of the state’s comprehensive efforts to improve affordability, build generational wealth, and unlock access to housing, Dream for All is paving the way home for thousands of Californians. This program is more than just financial assistance – it’s about providing a pathway for individuals to achieve their California dream.”
However, it remains unclear if Governor Newsom will sign the bill into law. If he vetoes it, a two-thirds majority vote in both legislative chambers would be required to override the veto.
Should the bill become law, undocumented immigrants with valid Social Security numbers or Individual Taxpayer Identification Numbers could apply for the loan, provided they meet other residency and documentation requirements. This change would benefit groups like Deferred Action for Childhood Arrivals (DACA) recipients who pay taxes but lack full citizenship.
Supporters argue the bill is a step toward fairness, allowing tax-paying residents to qualify for housing assistance. Cynthia Gomez, a deputy director at The Coalition for Humane Immigrant Rights, stated during an April hearing, “Homeownership is one of the largest contributors to building wealth for low and middle-income families. However, there are many barriers to access for homeownership, particularly for communities of color. California is solution-oriented, and we have implemented various policies that have made homeownership a reality for Californians.”
Despite support, the bill faces criticism. Opponents argue that the state’s limited funds should not be directed toward undocumented individuals. State Representative Joe Patterson expressed his concerns, saying, “I just can’t get behind using our limited dollars for people who are in this country undocumented when we have very limited funds.”
The Trump campaign also weighed in, calling the bill “fundamentally unfair but typical Democrat policy.”
The California Senate Appropriations Committee noted that the costs associated with expanding the program to include undocumented immigrants are currently “unknown.” However, the California Housing Finance Agency indicated that updating program regulations to prohibit disqualification based on immigration status would involve only “minor and absorbable” costs.
This legislative debate comes at a time when immigration continues to be a top concern for voters. California, home to an estimated 1.85 million undocumented immigrants in 2021, is grappling with a severe housing crisis. Mid-tier homes in the state cost more than double the national average, selling for over $700,000. Additionally, California accounts for 28% of the nation’s homeless population, according to recent data from the U.S. Department of Housing and Urban Development.
As the debate over Assembly Bill 1840 continues, it underscores the complex intersection of immigration and housing policy in California.
