First-time Calif. homebuyer program could expand to include undocumented people

Many people in California consider buying a house a tough task.

In 2023, home first-time homebuyers embarked on a new path to homeownership through a state-funded down payment assistance program known as “Dream for All.”

Now, the program could soon be expanded to allow undocumented immigrants that live in California to use the program.

California State Assembly Member Joaquin Arambula (Assembly District 31) introduced AB 1840 which aims to change the language in the down payment assistance program.

“What we are simply saying is those that have been in our state for years, if not decades, who are otherwise able to qualify for a loan should also be able to apply through the California Dream for All and we are providing that clarity with our bill,” Arambula said.

Pushback against the program's expansion

San Diego County Supervisor Jim Desmond disagrees with this proposal.

“We have a huge housing crisis in California and anything we can do to get people into housing we should do. However, we should help our own first. This next generation of people growing up can’t afford a house. I’ve got two kids in their early 30s and most of their friends do not own houses,” San Diego County Supervisor, District 5, Jim Desmond said.

Support for the program's expansion

Some housing experts and realtors want the proposal to pass and be built upon.

“I think if anything we need to do a lot more of this and we need to expand it as much as possible. Also – I would love to see more affordable housing being built,” Realtor Destiny Roxas said.

California's 'Dream for All' program

In 2023, a new California program made it easier for first-time homebuyers.

The state-funded program known as ‘Dream for All’ offered down payment assistance for first-time homebuyers in the form of a loan up to 20% of a home’s purchase price.

If you’re buying a $500,000 home, you’d receive 20%, or $100,000, to help with a downpayment and closing costs.

Once the homebuyer sells their home at a later date, they would be required to pay back the 20% assistance, plus 20% of the home’s appreciation. 

If your $500,000 home sells in five years for $700,000, you’d owe 20% of $200,000 appreciation — or $40,000, in addition to the original loan. 

If you sell your home and it hasn’t grown in value, you’d only pay back the original 20% loan, according to the California Housing Authority.

The first phase of the program helped 2,182 first-time homebuyers purchase a home, according to the California Housing Finance Agency.

In 2024, the application process for the program opens in April.

The California State Assembly has until September 2024 to pass AB 1840, according to Assembly Member Arambula.

If the bill passes and and is signed by the governor, it will go into effect in 2025.