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The California State Senate voted 23-11 to approve a bill that opens a state program for down payment assistance to illegal immigrants. However, it is unclear whether Gov. Gavin Newsom will sign or veto the bill.

AB 1840 would require the California Dream for All Shared Appreciation Loans program to overlook the immigration status of applicants for loans that are up to 20% of the home’s purchase price, with assistance provided up to $150,000 per person. The only interest paid on this loan is 15% or 20% of the home’s increase in value upon selling the property, depending on their income level. The program is run by the California Housing Finance Agency and receives state funding.

The bill’s author, State Rep. Joaquin Arambula (D-Fresno), has sought to downplay the immigrant status nature of his bill by highlighting that applicants must meet Fannie Mae requirements, including having a taxpayer identification number or a Social Security number to prove they are taxpayers. But Republican opponents to the bill have argued the state cannot afford expanding the program – 18,000 individuals applied for the $255 million program this year through a lottery, resulting in 1,700 applicants winning up to $150,000 each towards down payment and closing costs.

Newsom has not made any public comment on the bill, which makes its fate uncertain. He has until the end of September to sign or veto the bill.

Booking.com

Photo of California State Capitol courtesy of Wikimedia Commons

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