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California Gov. Gavin Newsom has vetoed a bill that would have provided illegal immigrants with access to a state-run homebuyers’ assistance program.

In a statement to the California Assembly, the governor declared, “I am returning Assembly Bill 1840 without my signature. This bill seeks to prohibit the disqualification of applicants from one of California Housing Finance Agency’s (CalHFA) home purchase assistance programs based solely on their immigration status.”

“Given the finite funding available for CalHFA programs, expanding program eligibility must be carefully considered within the broader context of the annual state budget to ensure we manage our resources effectively,” Newsom added. “For this reason, I am unable to sign this bill.”

AB 1840 would have required the 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.

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Competition for the program is tight – 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.

The bill’s author, State Rep. Joaquin Arambula (D-Fresno), 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.

Photo by Gage Skidmore / Flickr Creative Commons

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