A bill from Assemblymember Joaquin Arambula (D-Fresno) would expand California’s down payment and assistance program for first-time home buyers regardless of immigration status.

At least one lawmaker said it takes opportunities away from a high-demand program.

Assembly Bill 1840 passed the California Senate on Tuesday, providing up to $150,000 in closing costs and down payment assistance to first-time home buyers.

Arambula in a statement said that homeownership creates financial stability.

“The social and economic benefits of homeownership should be available to everyone,” Arambula said. “As such, the California Dream for All program should be available to all.”

Related Story: Arambula Bill Would Ensure Undocumented Eligible for State Home Loan Program

However, State Sen. Janet Nguyen (R-Huntington Beach) said in a post on X that making undocumented immigrants eligible for homebuyer assistance takes from others seeking to benefit from the program.

“I spoke out today on the Senate floor against 1840, assistance for first-time homebuyers. Veterans are beneficiaries of this program and it will be raiding their fund,” Nguyen said in the post. “I will always look out for our veterans and military.”

I spoke out today on the Senate floor against AB 1840, assistance for first time homebuyers. Veterans are beneficiaries of this program and it will be raiding their fund. I will always look out for our veterans and military. #SD36 pic.twitter.com/bIkEIGUo9U

— Senator Janet Nguyen (@SenJanetNguyen) August 27, 2024

‘A Bill About Fairness’: Arambula

Arambula issued a statement Wednesday after AB 1840 made national news. Arambula clarified that AB 1840 does not create a new program nor give away free money, but rather the bill expands the scope to include undocumented immigrants. To be approved, applicants still need to meet criteria required to secure a bank loan.

“My bill simply clarifies the language to make it clear that undocumented immigrants can apply — once again, if they meet all the criteria,” Arambula said in the statement. “That includes securing a bank loan or mortgage. Successful applicants have to repay the loan, without interest, when they sell the loan. In addition, 20% of the appreciation on that home’s value must be paid.”

‘Unknown Significant Cost Pressures’: Senate Analysis

In 2023, California set aside $300 million in the California Dream for All program. Funds were exhausted within 11 days as 2,182 applicants received help, according to Sen. Toni Atkins’ (D-San Diego) office.

The California Housing Finance Agency called the program “dramatically oversubscribed” in its report.

“While it was expected that a few additional weeks would be necessary to build the requisite lender capacity and begin originating loans in earnest, the response to the Dream For All program was overwhelming, with unprecedented lender and consumer uptake,” the report read.

The Senate Committee on Appropriations did not know the fiscal impact of making undocumented immigrants eligible for the $150,000 in assistance. Homebuyers who use the program pay back the loan and a share of the appreciated value when they sell the house.

The committee, chaired by Sen. Anna Caballero (D-Merced), said it would have “unknown significant cost pressures, potentially in the millions annually.” Caballero voted for AB 1840.

In addition to being a first-time homebuyer, eligibility also requires that at least one applicant be a first-generation homebuyer. There are caps on how much applicants can earn, determined by the California Housing Finance Agency.

The bill provides up to 20% in down payment assistance and covers some closing costs.

Applicants also have to qualify for a mortgage under Fannie Mae’s rules, which include having a taxpayer identification number or social security number.

Related Story: This Program Will Help Californians Buy Homes Without Busting the State Budget

‘Typical Democrat Policy’: Trump Campaign

Gov. Gavin Newsom would not say whether he would sign the bill, Politico reported Monday. While President Kamala Harris would not say whether she supported AB 1840, Politico reported the move could fuel the Trump campaign.

A Trump campaign spokesperson called the bill “fundamentally unfair but typical Democrat policy.”

Arambula said undocumented immigrants are an essential part of the community.

“We are a nation of immigrants, and we should remind ourselves the value and humanity of the people coming here who make our economy better — an economy that is the fifth-largest in the world,” Arambula said.