California Democratic Governor Gavin Newsom has explained why he vetoed a bill that would have made undocumented immigrants eligible to apply to the state’s homebuying assistance program, despite their legal status.
Assembly Bill 1840, sponsored by Assemblymember Dr. Joaquin Arambula, a Fresno Democrat, would have barred the state from stopping undocumented residents of the Golden State from tapping into its existing loan program, California Dream for All, as long as they meet its requirements. The program offers no-interest loans of up to $150,000 to cover down-payments and fees to eligible first-time buyers.
Arambula previously told Newsweek in a written statement that the bill simply clarified the language of the existing program “to make it clear that undocumented immigrants can apply—once again, if they meet all the criteria.
“That includes securing a bank loan or mortgage. Successful applicants have to repay the loan, without interest, when they sell the home. In addition, 20 percent of the appreciation on that home’s value must be paid,” he said.
The bill was approved in late August by the California Assembly and the Senate, where Democrats have supermajorities, but Newsom killed the bill when it reached his desk on Friday. In his veto message, the Democratic governor explained that there simply aren’t enough funds to cover a bigger pool of applicants.
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“This bill seeks to prohibit the disqualification of applicants from one of California Housing Finance Agency’s (CalHFA) home-purchase assistance programs based solely on their immigration status,” Newsom wrote.
“Given the finite funding available for CalHFA programs, expanding program eligibility must be carefully considered within the broader context of the annual state budget to ensure we manage our resources effectively. For this reason, I am unable to sign this bill,” he added.
California is currently facing a $27.6-billion budget deficit for the 2024-2025 fiscal year. In a statement to Newsweek, the California GOP attacked Democrats for wanting to pass AB 1840 at a time when the state is struggling with this deficit.
“California suffers from rampant crime, a homeless crisis, failing public education and a massive budget deficit, but instead of tackling those issues, California Democrats are passing extreme housing policies that are a complete slap in the face to the 86 percent of Californians who can’t afford to purchase a home in the state,” CAGOP chairwoman Jessica Millan Patterson said.
Newsweek contacted Newsom’s office for comment by email on Sunday morning outside of standard working hours.
Arambula said he was “deeply disappointed” by the governor’s decision to veto the bill. “The bill had won wide support in the Assembly and passed the Senate to get to his desk,” he said in a press release shared with Newsweek.
“AB 1840 simply sought to clarify language in the existing California Dream for All program, to make it clear that undocumented immigrants can apply,” he added. “The fact is, right now, anyone can apply who is a first-time homebuyer who can meet the program’s financial requirements that include securing a bank loan or mortgage. As I’ve said before, the bill is not about immigrant policies or the housing crisis. No single bill can solve those issues.”
For Arambula, the bill was about fairness. “The veto doesn’t change the fact that many people—including undocumented immigrants —dream of owning a home so that generational wealth can be passed to their children,” he said.
“They are people who are responsible, work hard, and pay their ample share of taxes[…]They should have the same opportunities as anyone else to improve the quality of life for themselves and their families,” Arambula added.
Newsom’s decision came a day after Donald Trump said that he would ban illegal immigrants from receiving home mortgages if he was elected president, a move that he claims would help home prices come down.
