The California Senate Appropriations Committee has taken a bold step towards granting illegal immigrants access to the state's zero-down-payment home loan program.
This development comes amid the ongoing crisis of illegal immigration at the southern border.
As reported by The Post Millennial, the bill's author, Assemblymember Joaquin Arambula, D-Fresno, stated, 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." He further emphasized the potential losses for undocumented individuals, stating, "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."
Bill AB1840, which has already secured approval from the state Assembly, is set to be presented for a vote on the Senate floor. The proposed program offers applicants loans covering up to 20% of their home's price, with no down payment or loan repayments required. The loan is expected to be repaid when the home is refinanced, sold, or transferred, with the borrower returning the loan amount plus 20% of any increase in the property's value. However, the bill does not specify the course of action if a family opts to retain the property long term, leaving a gap in the loan's usage terms.
The California Appropriations Committee analysis has highlighted potential financial implications of the bill, stating that there would be "unknown significant cost pressures, potentially in the millions annually, to provide additional funding for the Home Purchase Assistance Program to accommodate the expanded eligibility population.
The loan program has already attracted 18,000 applicants, costing $255 million through a lottery system. Of these, 1,700 winners have each received $150,000 to cover down payments and closing costs.
Login