Gov. Gavin Newsom has vetoed a bill that would have allowed undocumented immigrants living in California the ability to qualify for first-time homebuying loans.
Newsom cited funding concerns and the bill’s potential fiscal impact on the state budget in his veto message.
“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,” the message read.
“For this reason, I am unable to sign this bill,” Newsom said in a statement.
The bill, officially known as AB 1840, would have expanded 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.
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.”
Many Californians struggle to afford a home in the Golden State, with the average cost for a single-family home being nearly $785,000, according to Zillow.
Arambula released a statement expressing his disappointment regarding Newsom not signing the bill.
“I’m deeply disappointed that Governor Newsom today vetoed Assembly Bill 1840. The bill had won wide support in the Assembly and passed the Senate to get to his desk,” Arambula said in a statement.
“AB 1840 simply sought to clarify language in the existing California Dream for All program to make it clear that undocumented immigrants can apply. The fact is, right now, anyone can apply who is a first-time homebuyer who can meet the program’s financial requirements that include securing a bank loan or mortgage. As I’ve said before, the bill is not about immigrant policies or the housing crisis. No single bill can solve those issues.”