California Senate Passes Bill Extending Homebuyer Loan Program to Illegal Immigrants

A for sale sign is posted in front of a home in San Anselmo, Calif., on March 22, 2023. Justin Sullivan/Getty Images

The California Senate voted on Aug. 27 to pass legislation that would expand access to a state homebuyer loan program to illegal immigrants, potentially offering them a chance to receive help with down payments.

Assembly Bill 1840, introduced by Assemblyman Joaquin Arambula (D-Fresno), passed the Senate in a 25–14 vote.

It will return to the Assembly for a final vote before it can be sent to California Gov. Gavin Newsom’s desk.

The bill would expand eligibility requirements for the California Dream for All Shared Appreciation loan program, which was launched in 2023 to provide loans for down payments to qualified first-time homebuyers, including those on low incomes.

Currently, under the highly competitive program, only California citizens are eligible for the down payment assistance, with applicants being selected via a randomized draw by the California Housing Finance Agency.

Under Assembly Bill 1840, that program would be renamed the Home Purchase Assistance Program.

The bill also specifically states that applicants who otherwise qualify for the program shall not be disqualified from the program solely based on their immigration status, effectively allowing illegal immigrants to receive up to 20 percent in down payment assistance of up to $150,000.

People can apply for the program if they have a taxpayer identification number or Social Security number.

According to a June statement from Newsom’s office, 1,700 Californians received grants from the program out of 18,000 people who applied this year.

Newsom has not commented on whether or not he will sign Assembly Bill 1840 into law.

‘Benefits of Homeownership Should Be Available to Everyone’

Assembly Bill 1840 is sponsored by the Coalition for Humane Immigrant Rights and supported by numerous other rights organizations, pro-housing organizations, the California Faculty Association, the City of Alameda, and ACLU California Action.

In introducing the measure, Arambula said that the “social and economic benefits of homeownership should be available to everyone.” He said there had been a “lack of clarity” about whether or not individuals without immigration status can qualify for the down payment assistance program.

“Homeownership is a fundamental tool for wealth building, as it fosters financial stability and provides a tangible investment in one’s future. 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,” he said.

The assemblyman further argued that limiting access to the homeownership assistance program “perpetuates inequality” while expanding access can help foster economic stability in the state.

“Ensuring universal access by all qualified borrowers to the California Dream for All Program will contribute to the overall success and vitality of California,” Arambula said.

Opponents have said that the measure—which comes at a time when California is struggling with a multibillion-dollar deficit, and budget cuts to numerous housing and homelessness programs—could further worsen the situation.

“Many 2nd, 3rd, and 4th generation Californians can’t afford to buy a house in their home state thanks to record unaffordability under Democrat rule,” California Senate Minority Leader Brian Jones (R-San Diego) said in an Aug. 26 statement.

“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.”

California was home to more than 11 million immigrants in 2023, making up 28 percent of the state population, which is the largest percentage of immigrant residents of any state, according to nonprofit organization the California Budget and Policy Center.