Up to $150,000 for a 20% down payment, awaits Newsom’s signature of veto
Local legislators vote in favor
CALIFORNIA — The California State Senate passed the bill, on Tuesday, August 27, 2024, to give home loan down payments to illegal immigrants on 25-14 vote with 1 Democrat abstaining from voting. It follows the action in May by the Assembly, which passed it on a 56-15 vote with 6 Democrats and 3 Republicans not voting. Now the controversial Assembly Bill 1840 is on Governor Newsom’s desk awaiting his decision.
Both State Senator Anna Caballero (D-SD14) and Assemblywoman Esmeralda Soria (D-AD27), who represent Los Banos, voted for the bill authored by Assemblyman Joaquin Arambula (D-AD31) of Fresno.
It would expand eligibility of the California Dream for All Shared Appreciation Loan program, to be renamed under the bill to the Home Purchase Assistance Program, by removing any disqualifications based on an applicant’s immigration status. If approved, illegal immigrants could enter the lottery system under the program and qualify for the 20% in down payment assistance up to $150,000.
However, not all illegal immigrants would qualify for the program. Under AB 1840, only those with taxpayer ID numbers or Social Security numbers could apply. According to the language of the bill “This bill would specify that an applicant who meets all other requirements for a loan under the program and who is otherwise eligible under applicable federal and state law, shall not be disqualified solely based on the applicant’s immigration status.”
Out of 18,000 people who applied to the program this year, only 1,700 were chosen and the program ran out of money in the first 11 days. The bill would greatly expand the number of applicants, due to the California Dream program targeting low- to middle-income first-time buyers.
According to the program details, “The Dream for All Shared Appreciation Loan is a down payment assistance program for first-time homebuyers to be used in conjunction with the Dream For All Conventional first mortgage for down payment and/or closing costs. Upon sale or transfer of the home, the homebuyer repays the original down payment loan, plus a share of the appreciation in the value of the home.” In addition, one borrower must be a first-generation homebuyer and all borrowers must be first-time homebuyers.
Contact the Governor
To contact the governor to offer your input on how he should respond to the bill use the online form on the office’s website at www.gov.ca.gov/contact/. But you’ll have to select Immigration Issues/Concerns and write AB1840 in the comment as it is not currently in the Active Bills list. You can also call Newsom’s office at (916) 445-2841 and leave a message with or for his staff.
