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Governor Newsom Silent on Loan Down Payments for Undocumented Immigrants

by Hyacinth

Senate Vote Looms on Controversial Bill to Assist Home Purchases for Undocumented Immigrants.

A bill currently under consideration by the California Senate could soon reshape the state’s approach to homeownership assistance for undocumented immigrants. Assembly Bill 1840, authored by Assemblyman Joaquin Arambula (D-Fresno), is poised for a vote this week. However, it faces growing scrutiny, and Governor Gavin Newsom has yet to indicate whether he will sign it into law.

The proposed legislation seeks to expand the eligibility of the California Dream for All program, which would be renamed the Home Purchase Assistance Program under AB 1840. The bill aims to eliminate immigration status as a disqualifying factor for the program. If passed, undocumented immigrants would be able to participate in a lottery system offering 20% down payment assistance, up to $150,000. This year, the California Dream for All program saw 18,000 applications but selected only 1,700 participants. AB 1840 would significantly broaden the pool of eligible applicants, focusing on first-time buyers with low to middle incomes.

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Under the bill, not all undocumented immigrants would qualify. Only those with taxpayer ID numbers or Social Security numbers would be eligible to apply.

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The bill’s language specifies: “An applicant who meets all other requirements for a loan under the program and is otherwise eligible under applicable federal and state law shall not be disqualified solely based on the applicant’s immigration status.

Since its introduction, Arambula has defended the bill against ongoing criticism. “AB 1840 is about providing an opportunity for homeownership, which we know helps families achieve financial security and stability,” Arambula said earlier this year. He argued that increasing homeownership would benefit local economies and should be accessible to everyone, including undocumented individuals who contribute to the state’s tax revenue.

However, the bill has faced strong opposition from Republican lawmakers and a few Democrats. This was evident in the May Assembly vote, which saw a 56-15 result with nine abstentions. Concerns include the potential financial burden on the state and the legality of assisting individuals who entered the country illegally. Questions have also been raised about who would be responsible for the home loans, given that purchasers are not legal residents.

Senator Brian Jones (R-San Diego) criticized the bill, stating, “California’s budget deficit continues to grow, and Democratic lawmakers are out of touch with everyday Californians, diverting money from law-abiding citizens to those who broke federal law to enter the country illegally.”

Assemblyman Joe Patterson (R-Rocklin) echoed these concerns, saying, “I can’t support using our limited funds for undocumented individuals.”

The bill is expected to pass the Senate by a narrow margin. The key uncertainty now lies with Governor Newsom, who faces a complex decision. Supporting AB 1840 could put him at odds with Vice President Kamala Harris, who supports a federal proposal excluding undocumented immigrants from down payment assistance. Conversely, Newsom’s approval of the bill could draw criticism from both sides and potentially lead to legal challenges regarding federal law.

Newsom’s office has remained non-committal, with a spokesperson stating, “The Governor does not typically comment on pending legislation. If the bill reaches his desk, he will evaluate it on its merits.”

As the bill gains national attention, Newsom will have to navigate a challenging political landscape. Capitol staffer Dana commented, “If AB 1840 passes, it’s a major decision for Newsom. Signing it could lead to lawsuits and further controversy, while vetoing it might upset progressive Democrats and Latino voters.”

A Senate vote on AB 1840 is anticipated later this week.

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