California Governor Gavin Newsom (D) vetoed a bill on Friday that would have permitted illegal aliens to purchase homes with zero down payment and zero interest.
The bill, introduced by Democrat assemblymember Joaquin Arambula (Fresno), aimed to extend a first-time homebuyer loan program to illegal aliens.
Additionally, California Democrat state senators passed a bill last Tuesday that would provide interest-free home mortgage loans of up to $150,000 for illegal aliens.
Had the bill been signed into law, it would have made illegal aliens eligible for a new program offering a loan worth 20% of the property’s purchase price, with no monthly payments or interest accruing on the loan.
However, the borrower would be required to repay the original loan plus a 20% increase in the property’s value when refinancing or selling it.
Following the advancement of the bill in the California Senate, it was confirmed by the California Department of Finance that there are no available funds for the state’s first-time homebuyer program for illegal aliens.
LOOK:
UPDATE: After the CA Senate advanced bill allowing undocumented immigrants to apply for state's first-time homebuyer's program, the CA Department of Finance confirms the program has no money to give.
Lawmakers didn't appropriate funds for it this year.https://t.co/awIV0mNo8X
— Ashley Zavala (@ZavalaA) August 27, 2024
After the state budget was finalized in June, the mortgage loan program for illegal aliens did not receive any additional funding. Governor Newsom vetoed the bill due to insufficient funds.
“I am returning Assembly Bill 1840 without my signature,” Newsom wrote in his veto message to the members of the California State Assembly.
“This bill seeks to prohibit the disqualification of applicants from one of California Housing Finance Agency’s (CalHFA) home purchase assistance programs based solely on their immigration status,” Newsom wrote.
“Given the finite funding available for CalHFA programs, expanding program eligibility must be carefully considered within the broader context of the annual state budget to ensure we manage our resources effectively,” he said.
“For this reason, I am unable to sign this bill,” Newsom wrote.
