California Wants to Give Undocumented Immigrants $150,000 Each for First-Time Home Purchases

Summary of California’s Migrant Homebuyer Assistance Program:

• Program Details: California has introduced a program known as the “California Dream for All Shared Appreciation Loan” which offers first-time homebuyers, including undocumented migrants, a loan up to 20% of the home’s purchase price or $150,000, whichever is less. This loan does not accrue interest but requires repayment of the original amount plus 20% of any increase in the home’s value when sold or refinanced.

• Eligibility Requirements: The program targets low- to middle-income individuals, with the income threshold set at 120% of a county’s median income. There’s no explicit citizenship requirement, allowing undocumented migrants to apply, provided they meet other criteria like having a qualified mortgage.

• Legislative Context: Assembly Bill 1840 aims to clarify that undocumented immigrants are eligible for this program, addressing previous ambiguities in eligibility language.

• Taxpayer Reactions: Concerns Over Prioritization: Some taxpayers are upset because they feel this program prioritizes undocumented migrants over U.S. citizens or legal residents who might also struggle to afford housing. Critics argue this could exacerbate housing competition in an already tight market.

• Financial Burden: There’s frustration over the use of taxpayer money for what some see as an incentive for illegal immigration, especially when many legal residents and citizens face similar housing challenges without such assistance.
  Political Discontent: The initiative has sparked political debate, with critics from both sides of the political spectrum arguing it’s unfair or misallocates resources, potentially driving a wedge in community sentiments regarding immigration and housing policy.

Why Taxpayers Are Upset:

• Perceived Injustice: Many feel it’s unjust that undocumented individuals might receive substantial financial assistance for home buying while they, as taxpayers, do not have access to similar programs or face more stringent criteria.

• Housing Market Impact: There’s a concern that this could further inflate housing prices or reduce available housing stock for citizens and legal residents.

• Economic and Social Equity: The debate touches on broader issues of economic equity, where some argue that resources should first aid those who have legally contributed to the state’s economy through taxes and other means.

Sources:

California Dream For All | Shared Appreciation Loan

California is giving up to $150,000 to first-time homebuyers with Dream for All (ktla.com)

California Dems want to help undocumented immigrants buy homes – during presidential race – POLITICO

Link to Bill: Bill Text – AB-1840 Home Purchase Assistance Program: eligibility. (ca.gov)