No, California is not giving immigrants who are in the US illegally $150K to buy homes

To many voters, two of the biggest political issues in this election are housing prices and immigration. That’s especially true in California, which has more immigrants than any other state and the most expensive houses.

Several VERIFY readers told us they heard that California is supplying immigrants in the state illegally with free houses, or with money to buy them. 

Candy asked via email: “Does the state of California give illegal immigrants $150,000 to buy homes?”

THE QUESTION

Is California giving immigrants who are in the U.S. illegally $150,000 to buy homes?

THE SOURCES

• California Assembly Bill 1840

• California Housing Finance Agency

• Fannie Mae

• State budget of California

• Gov. Gavin Newsom (D-Calif.)

THE ANSWER

No, California is not giving immigrants who are in the U.S. illegally $150,000 to buy homes

WHAT WE FOUND

There is no program in the state of California giving free homes, or cash to buy them, to immigrants in the state illegally.

Claims to the contrary originate from a misinterpretation of a bill that passed the state legislature but was vetoed by Gov. Gavin Newsom.

Assembly Bill 1840 would have modified an existing state program called California Dream for All. 

This program allows certain Californians to apply for a lottery, the winners of which would receive a loan from the state to go toward a down payment and closing costs on a home. The loan can be worth up to 20 percent of the home’s value, capped at $150,000.

Recipients pay back the loan when they eventually sell the house. Interest is 20 percent of the home’s increase in value.

To be eligible for the lottery under the current law, applicants must meet all federal loan requirements, which include verifying legal residency and taxpayer status. In addition, they have to be first-time home buyers, first-generation home buyers, and fall under a certain income cap that varies by county.

According to the agency that administers the program, the California Finance Housing Agency, California Dream for All helped 2,182 people buy homes in its first year.

Assembly Bill 1840 proposed to make it so otherwise eligible applicants “shall not be disqualified by the agency solely based on the applicant’s immigration status.” In other words, even if they are in the country illegally, they would be eligible to participate in the lottery for one of these loans.

But the bill did not remove any of the other requirements to be eligible for a loan, such as having a Social Security or taxpayer ID number.

In his veto of the bill, Newsom said “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.”