The California Senate on Tuesday passed controversial legislation that gives illegal immigrants access to a zero down, zero interest home "loan" program.
The measure passed 23-11, with all nine Republicans voting against it, and will head back to the Assembly for a final vote before being sent to Gov. Gavin Newsom’s desk.
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. (The Center Square)
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"This is insulting," California Senate Minority Leader Brian Jones said on X. "Every dollar that goes to an illegal immigrant is one less dollar available to legal residents including veterans, teachers, and families. California already spends $5 billion per year on free healthcare for illegal immigrants—will it ever be enough for Democrats’ political agendas?"
California Senate passes bill giving up to $150K each to illegals for new homes.
— Paul A. Szypula 🇺🇸 (@Bubblebathgirl) August 27, 2024
Bill is expected to pass the assembly.
Taxpayers in Cali cool with this?pic.twitter.com/o8xTDzdKGm
.@SenBrianJones made some good points...😬
— CA Senate Republicans (@CASenReps) August 27, 2024
If 3rd and 4th generation Californians can't afford to buy homes, why are Dem politicians even entertaining a bill that would give away zero-down payment mortgages to illegal immigrants?
Senate Republicans voted NO. https://t.co/t7DpEd8XD6 pic.twitter.com/vTKPnaQmLD
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