A bill that would allow California illegal immigrants to tap into the state’s homebuying assistance program is headed towards Governor Gavin Newsom‘s desk despite loud complaints from local Republicans.
The proposed legislation, Assembly Bill 1840, was sponsored by Democratic Assemblymember Joaquin Arambula of District 31. Under the bill, the state won’t be able to disqualify undocumented people living in California from receiving home mortgage assistance because of their legal status.
“AB 1840 does not create a new home ownership assistance program for a specific group of people, nor does it give away free money. Already, anyone can apply who meets the existing California Dream for All loan program’s financial criteria as a first-time homebuyer,” Arambula said in a statement shared with Newsweek on Wednesday.
The program offers no-interest loans of up to $150,000 to cover down payments and fees to eligible first-time homebuyers. These include low- or middle-income and first-time mortgage borrowers who are U.S. citizens or noncitizens authorized to be in the country. But Arambula previously told The LA Times that the existing program’s eligibility requirements were ambiguous enough to discourage undocumented individuals from applying.
“My bill simply clarifies the language to make it clear that undocumented immigrants can apply—once again, if they meet all the criteria,” Arambula said in the written statement shared with Newsweek. “That includes securing a bank loan or mortgage. Successful applicants have to repay the loan, without interest, when they sell the home. In addition, 20 percent of the appreciation on that home’s value must be paid.”
The California Assembly gave final approval to the bill on Wednesday after being approved by a majority in the Senate earlier this week.
Addressing criticism against the proposed bill, Arambula specified that the legislation isn’t “about immigrant policies” nor “the housing crisis,” but it’s simply “about fairness.”
‘More Handouts’
Arambula’s defense of the bill is unlikely to placate California Republicans angered by the proposed legislation.
“If signed into law, AB 1840 sends a message to the rest of the world to come to California, whether legally or illegally, and claim your $150,000 home loan,” Senate Minority Leader Brian Jones said in a statement to Newsweek.
“California Democrats are offering illegal immigrants more and more handouts every day—first, it was free healthcare, and now it’s free down payment assistance. This will lessen the money available for veterans and their families to purchase homes,” he added.
The Republican senator is concerned that allowing undocumented people to receive home-buying assistance would make the California housing market even less affordable for residents.
“Basic economics tells us that government subsidies drive up inflation and increase costs overall,” Jones said. “While I can support narrow home-buying assistance programs for veterans who honorably served our country, large-scale government handout programs, especially for illegal immigrants, are dangerous for our economic health and will further exacerbate affordability issues in California’s housing market.”
The California Republican Party has expressed just as much hostility toward the bill.
“California suffers from rampant crime, a homeless crisis, failing public education and a massive budget deficit, but instead of tackling those issues, California Democrats are passing extreme housing policies that are a complete slap in the face to the 86 percent of Californians who can’t afford to purchase a home in the state,” CAGOP Chairwoman Jessica Millan Patterson told Newsweek.
“What makes it worse, leave it to California Democrats who can’t count themselves out of a paper bag to pass legislation that lacks any mechanism to even fund it. California Democrats are not serious people, and Californians are left to suffer the consequences of this party’s incompetence.”
‘Immigrants Are Californians’
Affordable housing advocates and migrants rights activists, on the other hand, strongly support Arambula’s bill.
Cynthia Gomez, deputy director of state policy at The Coalition for Humane Immigrant Rights (CHIRLA), one of the bill’s sponsors, told Newsweek that “AB 1840 aligns with the values” of California, “ones of equity and housing access for as many Californians as possible.”
“We understand that when immigrants thrive, California thrives and we understand that housing is a human right, and everyone should have the ability to make their dreams of homeownership a reality,” Gomez said.
“Immigrants are part of what makes California great, contributing both to the fabric of our state as well as our state’s economy, and without a doubt, immigrants are Californians,” she added. “It is unfortunate some have tried to create a divide among our neighbors, family, and friends when opposing this bill.”
Francisco Dueñas, executive director of Housing Now! California, told Newsweek that while his group hasn’t formally endorsed the bill, they think the proposal won’t be “very controversial” for a majority of Californians.
“To us, what is most important is that all Californians have the right to a healthy and affordable home. Undocumented immigrants are Californians who, just like you and I, contribute greatly to state and local taxes,” he said.
According to a recent study by the Institute on Taxation and Economic Policy (ITEP), undocumented immigrants in the Golden State contributed $8.5 billion in taxes in 2022, the latest data available. If these taxpayers were granted work authorization, the ITEP estimated that this number would rise to $10.3 billion.
“However, they and their families are often unjustly locked out of the very programs to which they contribute,” Dueñas said. “This unjust exclusion further exacerbates inequities for those families, many of whom have young children. Who will end up living in these homes are Californians, and that’s what matters.”
According to data from The Children’s Partnership, 4,082,000 or nearly half (46 percent) of California’s 9 million children in 2022 were part of immigrant families.
The bill now heads to Newsom’s desk. Jones believes that, “unfortunately,” the bill will be signed into law.
“As California goes, so goes the nation…Americans should be extremely concerned about a Harris-Waltz Administration taking this illegal immigrant handout program nationwide and further undercutting veterans,” he said.
In response to a request for comment, the California Democratic Party told Newsweek it did not take a position on the bill. Newsom’s office told Newsweek: “We don’t typically comment on pending legislation. The Governor will evaluate the bill when it reaches his desk.”
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