California's Department of Finance confirmed the program has no money to provide at this time.

SACRAMENTO, Calif. — California lawmakers have sent a bill to California Gov. Gavin Newsom that will allow undocumented immigrants to apply for the state's first-time homebuyer's program, California Dream for All.

But while Democratic lawmakers expanded eligibility for the funds, a spokesman for California's Department of Finance confirmed on Tuesday the program has no money to provide.

On Tuesday, Assembly Bill 1840 passed on a 23-11 party-line vote in the State Senate with some Democrats not voting.

The Senate sent the measure back to the Assembly where that body approved the bill with a 45-15 vote on Wednesday.

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AB 1840 specifically prohibits the California Housing Finance Authority's home purchase assistance program from disqualifying an applicant based on their immigration status.

The California Dream for All Program in June awarded 1,700 first-time homebuyers with financial assistance of up to 20% of a home's value for down payment and closing cost help. But the program ran out of funds within its first 11 days this year, an issue that was at the center of Tuesday's debate on the Senate floor.

Facing a budget shortfall in the tens of billions, the Legislature and governor did not appropriate any funds for the program this year. In order to replenish the funds in future years, lawmakers and the governor will need to approve new money for it in future budgets.

Republicans worried more applicants could further crowd the program and take away assistance from veterans and documented immigrants. Democrats criticized some of the rhetoric around the bill and noted undocumented people who apply for the funds must work and pay taxes.

"This is a commonsense bill that allows many of whom were essential workers during the COVID crisis to get in line and hopefully buy their first home," said state Sen. Anna Caballero, D-Merced. "It's not going to be easy; the program was oversubscribed immediately. We need to put more money into the program."

"The U.S. as a whole has one million immigrants that come here legally, many of them are hoping to get assistance to purchase a home, this particular bill actually disenfranchises and disrespects those who have gone through the process who are ready to purchase or would like to purchase a home," said state Sen. Rosilicie Ochoa-Bogh, R-Yucalpa.

The state's legislative session is in its final week. California lawmakers have until Saturday at midnight to pass new laws for the year.

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