California bill that could open new path to homeownership for undocumented immigrants advances

A California bill that would allow undocumented immigrants to qualify for first-time homebuying loans continues to progress in the state Legislature.

The bill, formally known as AB 1840, would expand the eligibility requirement for the state’s first-time homebuyer loan program, the California Dream For All Shared Appreciation program , to allow undocumented immigrants who live in the state to use it.

Most recently, AB1840 passed the Senate Appropriations Committee last week and now faces a floor vote in the Senate. The bill has already passed the Assembly.

The California Dream For All Shared Appreciation loan program launched in 2023 and helps qualified first-time homebuyers with down payments.

The program was initially created to help low-and middle-income individuals buy homes. Still, Assemblymember Joaquin Arambula (D-Fresno), who introduced the bill, previously told KTLA that the program doesn’t address eligibility based on immigration status.

“The program hasn’t been clear about eligibility for undocumented individuals, and AB 1840 addresses that issue,” Arambula told KTLA in an emailed statement.

“Let me be clear: anyone who meets the program’s criteria can apply for this loan program. And, to qualify, you must secure a bank loan or mortgage. AB 1840 is about providing an opportunity for homeownership, which we know allows families to secure financial security and stability. The ability to do this strengthens local economies and benefits all people who call California home.”

If the bill passes, it would broaden the term “first-time home buyer” to include undocumented immigrants.

The bill would need to be signed by Gov. Gavin Newsom before it officially becomes law.

The current legislative session ends on Aug. 31 and Newsom has until Sept. 30 to sign any bills passed by the Legislature.

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