California’s Democratic Governor, Gavin Newsom, has provided an explanation for his decision to veto a bill that aimed to grant eligibility to undocumented immigrants to apply for the state’s homebuying assistance program. Despite their legal status, Newsom chose not to support this bill.
Assembly Bill 1840, sponsored by Assemblymember Dr. Joaquin Arambula, a Fresno Democrat, aims to prevent the state from denying undocumented residents in California access to the California Dream for All loan program, provided they meet the program’s requirements. This program offers no-interest loans of up to $150,000 to eligible first-time buyers, helping them cover down-payments and fees.
Arambula, in a written statement to Newsweek, previously stated that the bill aimed to clarify the language of the existing program. The intention was to make it explicit that undocumented immigrants could apply if they met all the criteria.
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According to him, securing a bank loan or mortgage is part of the process. Once approved, successful applicants are required to repay the loan when they sell the home, without any interest. Additionally, they must also pay 20 percent of the appreciation on the value of the home.
In late August, the California Assembly and the Senate,approved the bill, but Governor Newsom ultimately vetoed it when it reached his desk on Friday. In his veto message, the Democrats governor cited the lack of funds as the reason for not being able to accommodate a larger pool of applicants.
Governor Newsom wrote that this bill aims to prevent the exclusion of individuals from CalHFA’s home-purchase assistance programs solely because of their immigration status.
Assemblymember Arambula expressed his profound disappointment regarding the governor’s choice to veto the bill. He emphasized that the bill had garnered substantial support in the Assembly and successfully made its way through the Senate. In a press release shared with Newsweek, Arambula shared his sentiments.
According to the representative, AB 1840 aimed to provide clarity in the California Dream for All program. It sought to ensure that undocumented immigrants have the ability to apply for the program. The main focus of the bill is not on immigrant policies or the housing crisis, as these are complex issues that cannot be solved by a single piece of legislation. The program’s financial requirements, which include obtaining a bank loan or mortgage, still apply to all first-time homebuyers.
According to Arambula, the bill was primarily driven by a sense of fairness. He emphasized that the veto does not alter the fact that numerous individuals, including undocumented immigrants, aspire to own a home. They see homeownership as a means to pass on generational wealth to their children.
“They are individuals who take responsibility, put in the effort, and contribute their fair share of taxes[…]They should be given equal opportunities, just like anyone else, to enhance the quality of life for themselves and their loved ones,” emphasized Arambula.
In response to Donald Trump’s proposal to ban illegal immigrants from receiving home mortgages if he becomes president, Governor Newsom made a decision the following day. He believes that this measure would contribute to reducing home prices.
