A very controversial legislation that seeks to financed illegal alliens in California in purchasing homes was vetoed last 6 September by Democratic Gov. Gavin Newsom. He cited limitations to the program's existing budget.
Introduced by its lead author, Assemblymember Joaquin Arambula (D-Fresno), Assembly Bill 1840 would have allowed illegal alliens to apply alongside other qualified applicants for the California Dream for All Shared Appreciation Loans program. The program offers interest-free loans of up to US$ 150,000 to low-income, first-time home buyers to cover down payments and fees.
The program initially received US$ 300 million in taxpayer funds, which financed nearly 2,200 loans, according to the California Housing Finance Agency, or CalHFA. The Legislature then provided US$ 225 million more, which went to assist about 1,700 additional applicants.
"Given the finite funding available for [the 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," Newsom said in his veto message.
At a news conference in Sacramento, Newsom declined to elaborate on his decision, reiterating that he rejected the proposal based on cost. "The bill that was sent to me was a program that had no money," he said.
According to CalHFA, no new applications are being accepted for the program currently because all of its funding has been allocated.
As the bill made its way through the state Senate and Assembly last month, lawmakers debated whether undocumented residents, specifically Mexican immigrants, should be eligible for a program that currently has no funds.
Many Republican lawmakers argued the bill would take opportunities away from U.S. citizens or encourage illegal immigration to the state.