California Senate passes 0 down, 0 payment home ‘loans’ for illegal immigrants – Washington Examiner
The California Senate has approved a controversial bill that allows undocumented immigrants to access the state’s zero-down, zero-interest home loan program despite significant national criticism. The bill passed with a narrow margin of 23 votes in favor and 11 against, including opposition from all nine Republican senators and two Democratic members.
Under the “Dream for All Shared Appreciation Loans” program, eligible applicants can receive loans up to $150,000, or 20% of a home’s purchase price, with no required down payment or payments during the loan period. Instead, the state takes back the original loan amount plus 20% of any gain in value when the property is sold or refinanced.
Despite the bill’s passage, California faced a $47 billion deficit and had not allocated any budget for the program this year, which means that the new eligibility for undocumented immigrants will only come into effect once future funds are appropriated. The program had set aside $255 million in the previous fiscal year, benefiting approximately 1,700 applicants through a lottery system. The implications of the bill’s approval and potential funding challenges remain uncertain.
California Senate passes 0 down, 0 payment home ‘loans’ for illegal immigrants
(The Center Square) – The California Senate passed a contentious bill to allow for undocumented immigrants to use the state’s zero-down, zero-interest home “loans” program despite national backlash following coverage of the bill’s looming passage.
With 23 votes for and 11 votes against — including all nine Republicans and Democratic State Sens. Catherine Blakespear, D-Encinitas, and Dave Min, D-Irvine — the bill narrowly passed the 21 vote majority threshold in the Senate.
California’s Dream for All Shared Appreciation Loans program allows applicants to secure “loans” of up to $150,000 or 20% of the home’s purchase price — or, about what a typical down payment is — with zero down payment on this state “loan,” and no payments. In exchange, the state receives the original loan amount plus 20% of the appreciated gain when the home is refinanced, sold, or transferred.
In the last fiscal year, the state allocated $255 million for the program for 1,700 lucky “winners” of an application lottery. KCRA reports that the California Department of Finance confirmed this year, legislators did not appropriate any money for the program, meaning this bill allowing undocumented immigrants to apply would only apply in future years when additional funds are provided. With the state narrowly balancing a $47 billion deficit this year, the state may not be able to allocate funding to this program for some time.
It’s not clear what happens if a family decides to hold on to a home as there are no provisions on how long a property can be held for, which means certain kinds of trusts could potentially allow the loan to not be paid back. Democrats argued those applying for the funds have to work to qualify for mortgages and are thus paying taxes, while Republicans argued the program, which ran out of funds in 11 days, is already overcrowded.
“With many legal residents not able to afford a home, should we really be giving free cash to illegal immigrants? Every dollar that goes to an illegal immigrant is one less dollar available to legal residents including veterans, teachers, and families,” said California Senate Minority Leader Brian Jones, R-San Diego, in a statement. “California already spends $5 billion per year on free healthcare for illegal immigrants—will it ever be enough for Democrats’ political agendas?”
AB 1840, which has now passed both the California Senate and Assembly, must now pass back again in the Assembly with the Senate’s amendments before the end of the legislative session on Aug. 31 before going to California Gov. Gavin Newsom’s desk for approval.
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