By Thomas Stevenson – The Post Millennial
The California Senate Appropriations Committee has moved full speed ahead to allow illegal immigrants the opportunity to make use of the state’s zero-money-down, no-payment, “loan” program for buying a home. The move from the state chamber comes amidst the ongoing illegal immigration crisis at the southern border.
According to The Center Square, bill author Assemblymember Joaquin Arambula, D-Fresno wrote of the bill, “The social and economic benefits of homeownership should be available to everyone. As such, the California Dream for All Program should be available to all.”
“When undocumented individuals are excluded from such programs, they miss out on a crucial method of securing financial security and personal stability for themselves and their families,” it added.
Bill AB1840 has already passed the state Assembly and will now move onto the floor of the Senate for a vote. The program allows for applicants to get “loans” for up to 20 percent of their home’s price, with zero down payment on the loan and no payments on the loan.
The “loan” can then possibly be repaid back when the home is refinanced, sold, or transferred with the borrower paying back the loan amount in addition to 20 percent of any increased value on the real estate. However, it is not clear what happens if a family decides to keep the property long term as no provision sets a limit on how long the loan can be used.
The California Appropriations Committee analysis stated that there would be “unknown significant cost pressures, potentially in the millions annually, to provide additional funding for the Home Purchase Assistance Program to accommodate the expanded eligibility population.”
18,000 people have applied for the “loan” program costing $255 million through lottery, with 1,700 winners getting $150,000 each to go towards down payments as well as closing.