A California bill that would allow undocumented immigrants to qualify for first-time homebuying loans could soon become law.

Formally known as AB 1840, the bill would expand eligibility requirements for California’s first-time homebuyer loan program, the California Dream For All Shared Appreciation Program, to allow undocumented immigrants to use it.

The bill passed the Senate Appropriations Committee in mid-August and is scheduled for a floor vote in the Senate.

When Fox News questioned whether Newsom would pass the law if it cleared the legislature by the Aug. 31 deadline, a spokesperson for the governor stated that he “doesn’t typically comment on pending legislation.”

Supporters of AB 1840l argue that the legislation is meant to offer undocumented residents equal opportunities to those given to everyone else in the state.

The proposal has received pushback from republican lawmakers in California, as well as the 2024 campaign of former President Donald Trump.

State Assemblymember Joe Patterson (R-Rocklin), who represents a suburban district north of Sacramento, said at a committee hearing earlier this summer that he “just can’t get behind using our limited dollars for people who are in this country undocumented.”

The bill’s author, Joaquin Arambula (D-Fresno), stated that AB 1840 stands by the same requirements that other taxpayers must meet to qualify as set by the Federal National Mortgage Association. These include having a taxpayer identification number or social security number to apply for a loan. In short, applicants must be taxpayers to qualify.

The existing loan program, California Dream for All, provides 20% of a home’s value for down payment and closing cost assistance up to $150,000. In June, Newsom’s office announced that 1,700 first-generation homebuyers had been conditionally approved for the Dream For All Shared Appreciation Loan program.

According to Arambula, the proposal is a response to an existing federal law that prevents undocumented immigrants from participating in state benefits without a state law providing for eligibility. By specifically including undocumented immigrants in the language of this proposal, the bill is meant to even the playing field by allowing them the same access as documented citizens based on their status as taxpayers.

“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,” Arambula told POLITICO. “Without the intentional law that we are introducing, we felt that there were complexities and questions that many in the immigrant community would have.”

For more information on CalHFA’s Dream For All Program, click here.

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