Illegal aliens in Calif. may soon be eligible for state home 'loan' requiring no money down, no payments

California may soon allow illegal aliens to participate in a state home loan program designed to assist first-time buyers.

Earlier this year, Assemblyman Joaquin Arambula (D-Fresno) introduced HB 1840, a measure that would allow illegal immigrants to take advantage of the California Dream for All Program just like citizens and legal residents.

Analysis from the Senate Appropriations Committee did note that the bill would likely create 'unknown significant cost pressures' for the Home Purchase Assistance program.

"Homeownership has historically been the primary means of accumulating generational wealth in the United States," Arambula said back in February. "The social and economic benefits of homeownership should be available to everyone."

The California Dream for All Program first began in March 2023, inviting prospective first-time homebuyers to apply for a "loan" through the California Housing Finance Agency. Approved applicants may receive up to 20% of the purchase price or a maximum of $150,000 that can be used toward a down payment or closing costs.

The terms of the program are quite generous. To qualify, applicants must be first-time homebuyers who earn no more than 120% of the median income of their county. In L.A. County, for example, the income limit is $155,000.

What's more, successful applicants do not need to make a down payment on the loan or even make payments thereafter. In theory, recipients repay the loan when they sell, refinance, or transfer the home, but without any stipulations in the program compelling homeowners to take such actions, the loan may never be paid back in some cases in which homes have been placed in a trust, Center Square reported.

In its first year, the program received so many applicants that officials had to implement a lottery system. This year, 18,000 applications were submitted for a share of the program's $255 million budget, but only 1,700 winners were selected.

Arambula's bill would make plain that illegal immigrants are also eligible to submit applications to the program, though the program currently has no provision that explicitly prohibits them from participating.

"When undocumented individuals are excluded from such programs, they miss out on a crucial method of securing financial security and personal stability for themselves and their families," Arambula claimed.

HB 1840 has already passed the Assembly and the state Senate Appropriations Committee. It will now head to the floor of the Senate for a full vote.

Analysis from the Senate Appropriations Committee did note that the bill would likely create "unknown significant cost pressures" for the Home Purchase Assistance program. Estimates claimed such pressures might be in "the millions annually."

Blaze News reached out to the office of Gov. Gavin Newsom (D) for comment about the bill and its prospects for becoming law but did not receive a response.

H/T: The Post Millennial

Like Blaze News? Bypass the censors, sign up for our newsletters, and get stories like this direct to your inbox. Sign up here!