Calif: Zero-Down, Interest-Free Home Loan Program To Be Offered For Illegal Immigrants

A sold sign is posted in front of a new home in a housing development April 23, 2010 in Pacifica, California. Sales of new homes surged nearly 27 percent in March, the largest single-month increase in 47 years. (Photo by Justin Sullivan/Getty Images)

OAN’s Brooke Mallory
10:22 AM – Thursday, March 7, 2024

The California state legislature is purportedly in the works of approving a contentious bill that would allow illegal immigrants to receive the same homebuyer help as citizens of the United States.

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However, the idea has drawn criticism from those who believe that benefits should not be given to anyone who breaks the law by entering the country illegally.

Assembly Bill 1840 was initially introduced in the middle of January. Following a number of revisions, it was moved last week to the Committee on Housing and Community Development, where it is currently pending further action.

Bill 1840 would amend current legislation in order to let undocumented immigrants who have illegally entered the U.S. to apply for the “California Dream for All Fund,” which offers interest-free loans to first-time homebuyers for a down payment.

California Democrat Assemblyman Joaquin Arambula first introduced the bill. He stated to the Fresno-based news outlet GV Wire last month that he “wanted to ensure that qualified first-time homebuyers include undocumented applicants.”

After revisions, the bill was sent to the committee last week. Arambula told the Los Angeles Times that homeownership has always been the primary means for Americans to build wealth over generations, so he felt that this would help illegals feel more at home and like a “true American.”

“The social and economic benefits of homeownership should be available to everyone,” Arambula said. He also argued that it’s “wrong to exclude people” from the benefits of the California Dream for All Fund program, even if they are here illegally.

However, as the proposal approaches passage into law, other legislators have voiced their opposition to it.

“Assembly Bill 1840 is an insult to California citizens who are being left behind and priced out of homeownership. I’m all for helping first-time homebuyers, but give priority to those who are here in our state legally,” said California Sen. Brian Dahle, a Republican, on X (Twitter).

The state’s Housing Finance Agency oversees the California Dream for All Fund program, which offers loans up to $150,000 for 20 percent of a home’s worth.

When selling or transferring the property, qualified buyers return the loans plus 20 percent of any value growth. With 15% of the appreciation due, applicants who make less than the county’s area median income are given a small break. In the event that the value of a home declines, only the principal will be repaid, making the loan technically interest-free.

The California Health and Safety Code’s Section 51523 is intended to be changed by the proposed bill.

“An applicant under the program shall not be disqualified solely based on the applicant’s immigration status,” will be a new revision added to the law.

Arambula has adamantly defended the policy, claiming in the GV Wire interview last month that since the loans are meant to be repaid with an appreciation charge, the state budget will not be impacted.

Despite the program’s net neutral to positive impact on the state budget, critics contend that it actively encourages illegal immigration and sends the wrong message.

“We have a huge housing crisis in California and anything we can do to get people into housing we should do. However, we should help our own first. This next generation of people growing up can’t afford a house. I’ve got two kids in their early 30s and most of their friends do not own houses,” said San Diego County Supervisor Jim Desmond, a Republican.

“What’s striking about the people being dropped here by the Border Patrol is about 70 percent of them are single males,” he told Fox News.

Meanwhile, the leader of the Border Patrol union has issued a warning over the substantial increase in the number of foreigners, specifically Chinese men who are of military age, that are entering the country illegally.

In a recent interview with the television program “Just the News, No Noise,” President Brandon Judd of the National Border Patrol Council expressed his belief that a portion of these Chinese migrants could be spies attempting to enter the United States on behalf of China’s communist government.

“At best, they’re here for a better life,” Judd said. “At worst, they’re here to be part of the Chinese government to infiltrate our own country.”

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