The California Senate Appropriations Committee recently approved Proposal AB 1840, which will open up the “California Dream for All Shared Appreciation Loan” to first-time homebuyers who are undocumented immigrants.
Introduced by Democratic Assemblyman Joaquin Arambula from Fresno in January this year, Proposal AB 1840 aims to expand the “California Dream for All Shared Appreciation Loan” to specifically include undocumented immigrants within its scope. Currently, the proposal still needs to undergo a full vote in the state Senate and receive the Governor’s signature. If passed and signed, the bill will take effect in 2025.
The “California Dream for All Shared Appreciation Loan” program was launched in March 2023, offering a 20% down payment for eligible low to moderate-income individuals. These loans are interest-free and do not require monthly payments. Borrowers are required to repay the original loan amount and 20% of the appreciated value of the property when they mortgage the property or sell the home.
It was reported that the program reached its application limit within just 11 days, with 2,300 successful applicants sharing a total funding of up to $300 million. Following this, California officials tightened the program’s regulations, requiring that at least one applicant must be a first-generation homebuyer.
Arambula told Fox5 TV, “The ‘California Dream for All Shared Appreciation Loan’ program already exists, AB 1840 simply makes it clear that undocumented immigrants can also apply.”
“For many people, they have been here for several years, even decades, because our immigration system is flawed. They have been paying taxes, working hard, and building credit. We need to find ways to open the doors for everyone to achieve their dream of homeownership,” Arambula said.
However, Li Shaomin, the chairman of the Organization for Justice and Equality, expressed opposition. He mentioned that the California government already provides free health insurance to undocumented immigrants, while legal residents must purchase it themselves or face fines of up to 2% of adjusted gross income.
Furthermore, California already has the highest tax rates in the country and is now using taxpayers’ money to pay for down payments for undocumented immigrants. American-born taxpayers or their children will be excluded from this loan program.
He also pointed out that California is facing a $60 billion deficit, with the Governor just cutting over $10 billion in financial expenditures. However, these undocumented immigrants who receive loans may not even need to repay the loans if they permanently hold onto their properties without selling them.
He questioned lawmakers whether they are truly considering the interests of California voters or serving undocumented immigrants. He stated, “Are they representing undocumented immigrants? Why deprive the rights of the people of California in this way?”
In April this year, the California government once again launched the “California Dream for All Shared Appreciation Loan” program, providing $250 million in funding. Unlike last year’s first-come, first-served approach, this year it switched to a lottery system. A total of 18,000 people applied for loans through the program this year, with 1,700 qualifying individuals successfully obtaining $150,000 each for down payments and home transaction costs.
Data released by the Pew Research Center in July this year revealed that California is home to nearly 2 million undocumented immigrants.