California Senate passes 0 down, 0 payment home ‘loans’ for illegal immigrants
California Senate passed controversial bill to allow undocumented immigrant to use state’s “loans to buy” home program with zero down and zero interest despite backlash from across the country following media coverage about the bill’s imminent passage.
The bill passed the 21 vote threshold in the Senate with 23 votes in favor and 11 votes against, including all nine Republicans as well as Democratic Senators. Catherine Blakespear (D-Encinitas) and Dave Min (D-Irvine), both Democrats, narrowly overcame the 21-vote threshold to pass the bill in the Senate.
California’s Dream for All Shared appreciation Loans Program allows applicants to obtain “loans”, up to $150,000, or 20% of a home’s purchase cost — or about the same as a typical downpayment — with no down payment and no payments. The state will receive the original loan plus 20% of any appreciated gains when the home is sold, refinanced or transferred.
The state allocated 255 million dollars for the program in the last fiscal, for 1,700 “winners”, of a lottery for application submissions. KCRA reports the California Department of Finance has confirmed that legislators have not allocated any funds for this program this year. This means the bill allowing undocumented migrants to apply will only be applicable in future years, when additional funding is provided. The state is still working to balance a $47 billion budget deficit. This may mean that funding for this program will not be available for some time.
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There are no rules on how long a house can be kept by a family. This means that certain trusts may allow the loan not to be repaid. Democrats said that those who apply for these funds must work in order to qualify for mortgages, and therefore pay taxes. Republicans argued that the program is already overcrowded.
Should we give free money to illegal immigrants when many legal residents cannot afford to buy a house? In a press release, California Senate Minority leader Brian Jones, R of San Diego, said that every dollar given to illegal immigrants is a dollar less available for legal residents, including teachers, veterans and families. “California spends already $5 billion a year on free healthcare to illegal immigrants. Will it ever be sufficient for Democrats’ political agendas?”
AB 1840 must pass the Assembly again with the Senate amendments by the end of the session on August 31. Then it will be sent to the California Governor. Gavin Newsom’s desk for approval.