By KENNETH SCHRUPP | THE CENTER SQUARE
The California Senate passed a contentious bill to allow for undocumented immigrants to use the state’s zero-down, zero-interest home “loans” program despite national backlash following coverage of the bill’s looming passage.
With 23 votes for and 11 votes against — including all nine Republicans and Democratic State Sens. Catherine Blakespear, D-Encinitas, and Dave Min, D-Irvine — the bill narrowly passed the 21 vote majority threshold in the Senate.
California’s Dream for All Shared Appreciation Loans program allows applicants to secure “loans” of up to $150,000 or 20% of the home’s purchase price — or, about what a typical down payment is — with zero down payment on this state “loan,” and no payments. In exchange, the state receives the original loan amount plus 20% of the appreciated gain when the home is refinanced, sold, or transferred.
In the last fiscal year, the state allocated $255 million for the program for 1,700 lucky “winners” of an application lottery. KCRA reports that the California Department of Finance confirmed this year, legislators did not appropriate any money for the program, meaning this bill allowing undocumented immigrants to apply would only apply in future years when additional funds are provided. With the state narrowly balancing a $47 billion deficit this year, the state may not be able to allocate funding to this program for some time.
It’s not clear what happens if a family decides to hold on to a home as there are no provisions on how long a property can be held for, which means certain kinds of trusts could potentially allow the loan to not be paid back. Democrats argued those applying for the funds have to work to qualify for mortgages and are thus paying taxes, while Republicans argued the program, which ran out of funds in 11 days, is already overcrowded.
“With many legal residents not able to afford a home, should we really be giving free cash to illegal immigrants? Every dollar that goes to an illegal immigrant is one less dollar available to legal residents including veterans, teachers, and families,” said California Senate Minority Leader Brian Jones, R-San Diego, in a statement. “California already spends $5 billion per year on free healthcare for illegal immigrants—will it ever be enough for Democrats’ political agendas?”
AB 1840, which has now passed both the California Senate and Assembly, must now pass back again in the Assembly with the Senate’s amendments before the end of the legislative session on Aug. 31 before going to California Gov. Gavin Newsom’s desk for approval.
How the worst run state could get any worse.
Stay tuned.
Looks like cman and a few others can now get a house instead of nothing.
It’s easy to see what’s going on here. As US citizens we’re being replaced. How is it a loan if you don’t have to pay it back? Wouldn’t that be considered a gift?
Don’t build the wall around Mexico. Build it around California.
Wait for it, the big housing/banking collapse in 2025. The beginning. I guess since normal citizens are not getting anything back for the taxes they pay in California, maybe they should stop paying taxes. And maybe the Federal government should consider taking all their military bases out of California. Let’s see where all the money will come from then. Maybe they should stop paying on all those healthy government retirements too and give that money to the illegals? Just saying some further choices.
What about our millions of homeless people who are citizens and not in this country illegally?
Get a frickin job…
You would fit in better with the California clown show
Unless they vote reliably D, the administrations in these deep blue states do not care about them.
Communism can be implemented in countless ways. If society allows it to grow, it will eventually take the entire economy down. Guaranteed. This is essentially a repeat of the 2008 crisis, but this time not with investor funds from institutions “too big to fail”, but with government funds/losses that are simply tacked on to the billions/trillions already lost through the Great Society/War on Poverty scam.
I’m wondering if people are starting to cross over into Mexico and then come back across as “undocumenteds” so they can reap some of these benefits? Free health care; free college tuition; housing subsidies; free phones; and so on.
“California’s Dream for All Shared Appreciation Loans program allows applicants to secure “loans” of up to $150,000 or 20% of the home’s purchase price — or, about what a typical down payment is — with zero down payment on this state “loan,” and no payments. In exchange, the state receives the original loan amount plus 20% of the appreciated gain when the home is refinanced, sold, or transferred.”
That $150,000 or 20% of the homes purchase price would be the cost of a down payment on a $750,000 house. If we have illegal aliens in this country needing help buying $750,000 homes and government is going to give them an interest free loan to do so with the guarantee of a 20% return on the gain then we as a society are destined to fail. This is government speculation in a housing bubble using illegal aliens as the bag holder. This is government instituted slave labor. This is the modern day Democratic Party.
The state of California is a lost cause. Let them sink into oblivion with their illegal immigrants as the anchor.
So an illegal immigrant can be gifted a house and then the next American who comes along to buy that home off the real estate market when that illegal immigrant is sent to jail has to pay full market value? What a twister clown world we are living in.
It’s actually worse than that, everyone will pay a higher price since government artificially inflated the value of these homes which will drive up the prices of all homes. This policy will likely mean that law abiding Americans will be priced out of owning a home in favor of government subsidized and financed illegal aliens.
Leftists will spend no end of other people’s money to make themselves look giving, benevolent, and generous.
Wonder what the property-tax will be on these things, and who’ll be stuck with the bill.
.
Since these things are expensive gifts, the IRS will want a substantial cut. Wonder how much it’ll be and who’ll be stuck with the bill.