Gov. Gavin Newsom vetoed a Democrat-led bill Friday that would’ve allowed illegal migrants living in the state to apply for taxpayer funded home loans.
Newsom vetoed AB 1840, legislation that sought to make illegal migrants eligible for a state program that provides first-time homebuyers with taxpayer-funded home loans, the governor’s office announced. The initiative, known as the California Dream For All Shared Appreciation Loan program, currently provides up to 20% of a house’s purchase price for down payment or closing cost to approved applicants.
The Democrat governor stated Friday that lawmakers essentially were trying to expand eligibility of a program with limited funds.
“This bill seeks to prohibit the disqualification of applicants from one of California Housing Finance Agency’s (CalHFA) home purchase assistance programs based solely on their immigration status,” Newsom said in a statement. “Given the finite funding available for CalHFA programs, expanding program eligibility must be carefully considered within the broader context of the annual state budget to ensure we manage our resources effectively.” (RELATED: EXCLUSIVE: Chip Roy Unveils Devastation Of Border Crisis Under Biden-Harris Admin In New Report)
SAN FRANCISCO, CALIFORNIA – OCTOBER 06: (L-R) California Gov. Gavin Newsom speaks during a press conference on October 06, 2022 in San Francisco, California. California Gov. (Photo by Justin Sullivan/Getty Images)
The taxpayer-funded home loans provided by the program are interest-free and borrowers are not required to dole out monthly payments, making the program incredibly popular with California residents.
When applications for the $300 million program first opened up in May 2023 — offering interest-free loans to around 2,300 middle and lower-income homebuyers — funds ran dry in less than two weeks, according to the Los Angeles Times. California officials have since tightened eligibility for the program, mandating that at least one of the applicants be a first-generation home buyer and replacing the first-come-first-serve model with a lottery.
Despite the program’s lack of critical funds, California Democrats overwhelmingly supported the idea of opening it up to illegal migrants when Assemblymember Joaguin Arambula introduced AB 1840 in January, with lawmakers sailing the bill through the state House and state Senate — and attracting the ire of California Republicans, who are a minority in the state capitol.
“Many legal California residents can’t afford a home in their own state,” California Sen. Brian Jones, one of only two GOP members on the Senate Appropriations Committee, stated to the DCNF last month. “Instead of addressing the housing crisis, radical Democrat lawmakers want to help illegal immigrants buy houses with the gift of taxpayer funds.”
California Democrats defended the bill, however, with State Sen. Scott Wiener arguing that illegal immigrants who would qualify for the bill are “exactly the kind of people that you want in your community” and Arambula claiming that the “social and economic benefits of homeownership should be available to everyone.”
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