A new bill introduced earlier this year by Assemblyman Joaquin Arambula, D-CA, could make it possible for undocumented immigrants to qualify for a state loan program for first-time home buyers.
Assembly Bill 1840 was first introduced in January. The bill focused on expanding the eligibility requirement for the California Dream for All Shared Appreciation Loans program, which launched in the spring of 2023 to give qualifying first-time home buyers a loan covering up to 20% of the purchase price of a house or condominium unit. The loan does not accrue interest or require monthly payments. Instead, the borrower pays back the original amount of the loan plus 20% of the increase in the property's value when the mortgage is refinanced or when the house is sold again.
The original program was established to help low- and middle-income citizens buy a home. However, the program does not address eligibility based on immigration status. Under Arambula's proposal, the program would allow illegal immigrants into the eligibility pool.
"It's that ambiguity for undocumented individuals, despite the fact that they've qualified under existing criteria, such as having a qualified mortgage. Underscores the pressing need for us to introduce legislation," he said in an interview with LA Times. "Homeownership has historically been the primary means of accumulating generational wealth in the United States. The social and economic benefits of homeownership should be available to everyone."
How Does California's Loan Program Work?
Last year, California's Dream for All Shared Appreciation Loans program operated on a first-come, first-serve basis. The program, which launched in April, was made available to households earning below $180,000 in Los Angeles County and $235,000 in Orange County.
Last year's program hit its limit of about 2,300 applicants in just 11 days. The program was halted shortly after.
This year, the program will follow a lottery system. The program is now taking applications from interested home buyers, with the lottery taking place in April. Another change to the program includes dropping the income threshold from 150% of a county's median income to 120%.
The bill comes as concerns continue to rise across the United States amid a migrant crisis. The U.S. Border Patrol reported 250,000 encounters with migrants crossing into the country from Mexico in December 2023, government statistics showed.
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