Gov. Newsom Mum Over Loan Down Payments For Illegal Immigrants

A bill that is expected to pass the Senate this week that would help pay for home down payments for illegal immigrants in California had it’s final status be questioned more in the past few weeks, as scrutiny over the bills grows and Governor Gavin Newsom has yet to commit to signing the bill into law.

Assembly Bill 1840, authored by Assemblyman Joaquin Arambula (D-Fresno), would expand eligibility of the California Dream for All program, to be renamed under the bill to the Home Purchase Assistance Program, and remove any disqualifications based on an applicants immigration status. If approved, illegal immigrants can enter the lottery system under the program that gives 20% in down payment assistance up to $150,000. This year, out of 18,000 people who applied to the California Dream for All program, only 1,700 were chosen. The bill would greatly expand the number of applicants, due to the California Dream program targeting low to middle income first time buyers.

In addition, not all illegal immigrants would qualify for the program. Under AB 1840, only those with taxpayer ID numbers or Social Security numbers could apply.

According to the language of the bill “This bill would specify that 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.”

Since AB 1840 was introduced this year, Arambula has been continuously defending it amidst a constant wave of criticism.

“AB 1840 is about providing an opportunity for homeownership, which we know allows families to secure financial security and stability,” said Arambula earlier this year. “The ability to do this strengthens local economies, and that benefits all people who call California home. 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.

“We simply wanted to be as inclusive as possible within our policies so that all who are paying taxes here in our state were able to qualify. Without the intentional law that we are introducing, we felt that there were complexities and questions that many in the immigrant community would have.”

Republican lawmakers, as well as a small minority of Democratic lawmakers, have fought against the bill all year. This can be seen in the divisive 56-15 with 9 abstention Assembly vote in May and the bill briefly being placed in the suspense file earlier this month. While many are concerned about the increased costs that the bill will bring to the state, many others pointed out that the money would still be going to people who entered the country illegally and broke the law, even if they have a taxpayer ID number. The Globe itself also had an article come out in March questioning the bill and asking who would be on the hook for the home loans as purchasers are not legal residents of the state or country.

A divisive AB 1840

Senator Brian Jones (R-San Diego) said of the bill that “California’s budget deficit continues to grow and Democratic lawmakers are so out of touch with everyday Californians that they are quite literally taking money away from law-abiding citizens, their own constituents, and handing it over as a free gift to people who broke federal law to cross the border illegally.”

Assemblyman Joe Patterson (R-Rocklin), added in May that “I just can’t get behind using our limited dollars for people who are in this country undocumented.”

While it is expected to pass the Senate later this week, likely by another tight vote, the big question mark over the bill passing is Governor Newsom. He is currently in a tough spot on immigration through his support of Vice President Kamala Harris in the presidential election, as she supports a Biden proposal that would give $2,500 for down payments for first-time, first-generation home owners, with illegal immigrants being specifically excluded because of federal law. Newsom signing AB 1840 would suddenly put him at odds over both her and Donald Trump, with the latter’s campaign calling the bill “fundamentally unfair but typical Democrat policy.”

Also worrisome for Newsom is the political backlash. As he is entering a more moderate period and is staying away from more controversial bills to help elevate himself for a post-Governor political career, signing AB 1840 would create a divisive firestorm that would also likely bring on lawsuits over questions of the bill violating federal law.

Newsom rarely indicates if he will be signing or vetoing a bill, and for AB 1840, he has gone with his usual radio silence.

“He doesn’t typically comment on pending legislation,” said Newsom’s office on Monday. “If the bill reaches his desk, the Governor will evaluate it on its merits.”

But, with the bill now making national headlines and being at odds over Biden/Harris administration goals, scrutiny has grown in the past few weeks from all sides. And Newsom now will likely face a difficult decision on whether or not to sign it into law.

“First we need to assume this passes,” explained “Dana,” a Capitol staffer, to the Globe on Monday. “Every indication right now is that it will, but we have seen the eleventh hour removal before. Any way, assuming it passes, this is a big decision. This is a bill where there is no real middle ground, and is the type of bill he has been dreading at looking at. Especially where he is politically now. Should he sign it, it means possible lawsuits, adding another controversy to his political career, and potentially hurting Harris. If the question of immigration comes up in a debate, Trump can use how Newsom is going against Biden and other Democrats on the home loan issue and show them as not being united on it.

“And if he does sign it, he’ll lose a lot of favor with progressive Democrats, as well as hurt him with Latino voters a bit. The smart play would be a veto, but on the basis that he is following federal law and mirroring Biden/Harris policy proposals. You know ‘Hey, you’re against me for not signing it? That also means you’re against Kamala!’.

“The thing is, so many people are struggling to buy a house right now, as costs keep going up. We know from constituents that they feel that the state needs to address this problem more. Bills like this, they feel are ignoring the bigger issue.”

A Senate vote on AB 1840 is expected this week.