California is considering a law to extend taxpayer-backed homebuying assistance — zero-down, interest-free loans — to its large population of unlawful migrants.
The potential move comes despite the millions of American citizens who cannot afford homes due to inflation and high interest rates.
Assembly Bill 1840 was introduced in January by California Assemblyman Joaquin Arambula (D-Fresno) and would make the state’s estimated 2.7 million unlawful migrants eligible for a program using public tax dollars called the “California Dream for All Fund” that provides loans of 20% of a home’s value up to $150,000, reported Zero Hedge.
Qualifying buyers pay the loan back when they sell or transfer the property, plus up to 20% of any appreciation in the home’s value. But if the home has not improved in value, then only the principal is owed, making the loan technically interest-free.
In justifying the bill, Arambula told GV Wire that he “wanted to ensure that qualified first-time homebuyers include undocumented applicants.”
“For many people who have been here for years, if not decades, because we have a broken immigration system, who have been paying taxes and doing their hard work as well as building up a credit score, we need to figure out how to open doors for all people to realize that dream of homeownership,” said Arambula, per CBS 8 San Diego.
According to the program guidelines, a borrower must “be either a citizen or other National of the United States, or a ‘Qualified Alien’ as defined [in] 8 U.S.C § 1641.”
Opponents of expanding the program argue it would induce more people to break the law and enter the country unlawfully.
“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,” wrote California Sen. Brian Dahle (R-Redding) on X.
Some, however, support the bill.
“I think, if anything, we need to do a lot more of this, and we need to expand it as much as possible. Also — I would love to see more affordable housing being built,” Destiny Roxas, a realtor, told NBC 7 San Diego.
California is among the most unaffordable places in the country for homeownership, where the average home requires three times the median household’s income, according to the San Francisco Examiner. As a result of the high cost of housing, 45% of Californians are considering leaving the state.
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