AB 1840: Expanding Home-Buying Eligibility to Undocumented Immigrants

The first round of funding for California’s ‘Dream for All’ Home Loan Program passed through $300 Million in 11 Days with over 21,000 applicants and 2563 loans funded. This program is designed to help first-time home buyers in California. Now, AB 1840, if passed, would make the competition to be a homeowner even harder.

A California lawmaker is leading the charge to make undocumented residents eligible for a popular state-backed home loan program weeks before it gives out another $250 million in down payment assistance. Assemblymember Joaquin Arambula, D-Fresno, introduced legislation, Assembly Bill 1840, last month to expand eligibility for the California Dream for All program, which uses a “shared appreciation” lending model. While undocumented immigrants have bought homes using lending programs that bypass the need for a Social Security number for years, the bill would make home-buying more accessible for many.

Understanding AB 1840

Bill Overview: Assembly Bill 1840 proposes an applicant under the program shall not be disqualified solely based on the applicant’s immigration status for the state-backed home loan program.
Impact: This bill could make home-buying more accessible to many undocumented immigrants.
Program Details: The California Dream for All program offers down payment assistance—20% of the home’s price or up to $150,000. It requires repayment upon resale, including a share of the appreciation.

The Difference in Documentation

Undocumented Immigrants: Undocumented immigrants can buy homes using specific lending programs. These programs do not require a Social Security number but often utilize an Individual Taxpayer Identification Number (ITIN)
What’s the difference between legal and undocumented immigrants?
Legal immigrants are foreign-born people legally admitted to the U.S. Undocumented immigrants, also called illegal aliens, are foreign-born people who do not possess a valid visa or other immigration documentation, because they entered the U.S. without inspection, stayed longer than their temporary visa permitted, or otherwise violated the terms under which they were admitted.
(Definition per the Washington State Department of Social and Health Services)

Addressing Concerns and Future Plans

Program Popularity: The initial response to the Dream for All Program was overwhelming, with $300 million in loans claimed rapidly. This raised concerns about equitable distribution.
Revised Eligibility: Changes include a lottery system, a focus on first-generation homebuyers, and lowered income thresholds.
Next Steps: The bill awaits further legislative action, and its impact on California’s housing market and undocumented community is highly anticipated.

Concerns about the new California bill, particularly AB 1840, which aims to extend first-time homeowner financing to undocumented immigrants, are significant. This legislation represents a complex issue with multiple facets to consider:

Impact on Existing Potential Homebuyers: It’s essential to understand if AB 1840 would adversely affect citizens awaiting their chance to own a home. The critical question is whether the bill allocates additional resources or redistributes existing ones. If the latter, it might indeed increase competition for housing resources among all first-time homebuyers, potentially delaying the dreams of those already waiting.
Philosophy of Inclusivity in Housing Policies: AB 1840 reflects an inclusive approach to housing policy, acknowledging the diverse demographics of California’s population, including many undocumented immigrants.
Prioritization in Housing Policies: Your question raises a fundamental policy debate: Should state resources be first directed towards citizens and legal residents, or should they be allocated based on the broader needs of all residents, regardless of citizenship status? This debate touches on deeper issues of social policy, economic strategy, and ethical considerations.

In summary, while AB 1840 aims to be inclusive, its impact on the broader housing market and existing potential homebuyers, particularly those who are citizens or undocumented residents, is a critical aspect that warrants further examination and public discussion.

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Competition for funding assitance would get harder.