Illegal Immigrants Could Soon Get Help to Buy Homes In California

A controversial new California bill appears to be inticing more illegal immigrants to cross the border instead of discouraging them.

Assembly Bill (AB) 1840 would allow “undocumented persons” to receive the same kind of homebuyer assistance as American citizens by making them eligible for the California Dream for All Fund,

First introduced on January 16th, Bill 1840 was originally intended to “provide shared appreciation loans” to low and middle income citizens. Under Arambula’s new proposal, the legislation would expand to allow the program to include illegal immigrants into the eligibility pool.

The fund provides interest-free loans for a down payment on a home for first-time buyers.

Natural News reports: AB 1840 was first introduced by California Democrat Assemblyman Joaquin Arambula in mid-January and after several amendments, it advanced last week to the Committee on Housing and Community Development, where it awaits further action. Arambula last month told Fresno-based news outlet GV Wire that he “wanted to ensure that qualified first-time homebuyers include undocumented applicants.” When the bill advanced to committee after amendments last week, he told the Los Angeles Times that, historically, homeownership has been the main way people accumulate generational wealth in the United States.

“The social and economic benefits of homeownership should be available to everyone,” he said, arguing that it is wrong to exclude people from the benefits of the California Dream for All Fund program just because they’re illegal immigrants. The program, administered by the state’s Housing Finance Agency, provides loans for 20 percent of a home’s value but no greater than $150,000. Qualifying homebuyers repay the loans when selling or transferring the property plus 20 percent of any appreciation in its value. Applicants who earn less than the county’s area median income get a slight break, having to pay 15 percent of the appreciation. If a home doesn’t appreciate, only the principal will be paid back, meaning the loan is interest-free.

The proposed bill will amend Section 51523 of the California Health and Safety Code to include a subsection that reads: “An applicant under the program shall not be disqualified solely based on the applicant’s immigration status.”

As it nears becoming legislation, the said measure received flak from other lawmakers. “Assembly Bill 1840 is an insult to California citizens who are being left behind and priced out of homeownership. I’m all for helping first-time homebuyers, but give priority to those who are here in our state legally,” Republican California Sen. Brian Dahle posted on X, formerly known as Twitter.

Meanwhile, Arambula argued in the interview last month that the program won’t affect the state budget because the loans are supposed to be paid back with an appreciation fee. But despite the net impact of the program on the state budget being technically neutral-to-positive, some critics are concerned that it sends the wrong message and effectively rewards illegal immigration.

“We have a huge housing crisis in California and anything we can do to get people into housing we should do. However, we should help our own first. This next generation of people growing up can’t afford a house. I’ve got two kids in their early 30s and most of their friends do not own houses,” San Diego County Supervisor Jim Desmond told NBC 7 San Diego. “You incentivize illegal immigration by providing free healthcare, free unemployment benefits and tons of other freebies,” he replied to a post by California Gov. Gavin Newsom’s post. “It’s no wonder we are getting thousands of people by the day. This is on you as much as the federal government.”