(NewsNation) — The California Senate passed a controversial bill Tuesday that would allow some migrants in the country illegally to secure first-time homebuying loans.
If Assembly Bill 1840 becomes law, migrants could participate in a lottery system that would provide them up to 20% in down payment assistance or closing costs up to $150,000.
With immigration such a contentious topic this election year, there’s concern that passing the bill might make Democrats appear lenient on immigration. This has led to speculation that Gov. Gavin Newsom, a strong party loyalist, may ultimately veto the bill.
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What are the eligibility requirements?
If AB 1840 becomes law, it would expand the eligibility requirement for the state’s first-time homebuyer loan program, the California Dream For All Shared Appreciation program, to allow migrants who live in the state to use it.
So far this year, 18,000 people have applied for the program and only 1,700 were chosen.
Not all migrants would qualify for the program; they must be able to show that they pay taxes and provide a taxpayer ID or a Social Security number.
“An applicant who meets all other requirements for a loan under the program and who is otherwise eligible under applicable federal and state law, shall not be disqualified solely based on the applicant’s immigration status,” according to the language of the bill.
The loan program, which was launched last year, was initially created to help low-and middle-income individuals buy homes. However, Assemblymember Joaquin Arambula, D-Fresno, who introduced the bill, previously told NewsNation affiliate KTLA that the program doesn’t consider immigration status as a factor for eligibility.
“The program hasn’t been clear about eligibility for undocumented individuals, and AB 1840 addresses that issue,” Arambula told KTLA in an emailed statement.
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Some Republicans who spoke with NewsNation expressed frustration, stating they’re “sick of” what they call “free handouts” that California gives to migrants in the country illegally.
NewsNation reached out to Newsom’s office, which indicated that they would evaluate the bill once it reached the governor’s desk.
The current legislative session ends Saturday, and Newsom has until Sept. 30 to sign any bills passed by the legislature.
NewsNation affiliate KTLA contributed to this report.
