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California Senate passes 0 down, 0 payment home ‘loans’ for illegal immigrants

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From The Center Square

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“With many legal residents not able to afford a home, should we really be giving free cash to illegal immigrants?

The California Senate passed a contentious bill to allow for undocumented immigrants to use the state’s zero-down, zero-interest home “loans” program despite national backlash following coverage of the bill’s looming passage.

With 23 votes for and 11 votes against — including all nine Republicans and Democratic State Sens. Catherine Blakespear, D-Encinitas, and Dave Min, D-Irvine — the bill narrowly passed the 21 vote majority threshold in the Senate.

California’s Dream for All Shared Appreciation Loans program allows applicants to secure “loans” of up to $150,000 or 20% of the home’s purchase price — or, about what a typical down payment is — with zero down payment on this state “loan,” and no payments. In exchange, the state receives the original loan amount plus 20% of the appreciated gain when the home is refinanced, sold, or transferred.

In the last fiscal year, the state allocated $255 million for the program for 1,700 lucky “winners” of an application lottery. KCRA reports that the California Department of Finance  confirmed this year, legislators did not appropriate any money for the program, meaning this bill allowing undocumented immigrants to apply would only apply in future years when additional funds are provided. With the state narrowly balancing a $47 billion deficit this year, the state may not be able to allocate funding to this program for some time.

It’s not clear what happens if a family decides to hold on to a home as there are no provisions on how long a property can be held for, which means certain kinds of trusts could potentially allow the loan to not be paid back. Democrats argued those applying for the funds have to work to qualify for mortgages and are thus paying taxes, while Republicans argued the program, which ran out of funds in 11 days, is already overcrowded.

“With many legal residents not able to afford a home, should we really be giving free cash to illegal immigrants? Every dollar that goes to an illegal immigrant is one less dollar available to legal residents including veterans, teachers, and families,” said California Senate Minority Leader Brian Jones, R-San Diego, in a statement. “California already spends $5 billion per year on free healthcare for illegal immigrants—will it ever be enough for Democrats’ political agendas?”

AB 1840, which has now passed both the California Senate and Assembly, must now pass back again in the Assembly with the Senate’s amendments before the end of the legislative session on Aug. 31 before going to California Gov. Gavin Newsom’s desk for approval.

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2025 Federal Election

Voters should remember Canada has other problems beyond Trump’s tariffs

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From the Fraser Institute

By Jake Fuss and Grady Munro

Canadians will head to the polls on April 28 after Prime Minister Mark Carney called a snap federal election on Sunday. As the candidates make their pitch to try and convince Canadians why they’re best-suited to lead the country, Trump’s tariffs will take centre stage. But while the tariff issue is important, let’s not forget the other important issues Canadians face.

High Taxes: As many Canadians struggle to make ends meet, taxes remain the largest single expense. In 2023, the latest year of available data, the average Canadian family spent 43.0 per cent of its income on taxes compared to 35.6 per cent on food, shelter and clothing combined. High personal income tax rates also make it harder to attract and retain doctors, engineers and other high-skilled workers that contribute to the economy. Tax relief, which delivers savings for families across the income spectrum while also improving Canada’s competitiveness on the world stage, is long overdue.

Government Debt: At the end of March, Canada’s total federal debt will reach a projected $2.2 trillion or $52,094 for every man, woman and child in Canada. The federal government expects to pay $53.7 billion in debt interest costs in fiscal year 2024/25, diverting taxpayer dollars away from programs including health care and social services. The next federal government should rein in spending and stop racking up debt.

Red Tape: Smart regulation is necessary, but the Canadian economy is plagued by a costly and excessive regulatory burden imposed by governments. Regulatory compliance costs the economy approximately $12.2 billion each year, and the average business dedicates an estimated 85 days towards compliance. The next federal government should cut undue red tape and make Canada an easier place to do business.

Housing Affordability: Canadians across the country are struggling with the cost of housing. Indeed, Canada has the largest gap between home prices and incomes among G7 countries, and rents have spiked in recent years in many cities. In short, there’s not enough housing to meet demand. The next federal government should avoid policies that stoke further demand while working with the provinces and municipalities to remove impediments to homebuilding across Canada.

Collapsing Business Investment: Business investment is necessary to equip workers with the tools, technology and training they need to be more productive, yet business investment has collapsed. Specifically, from 2014 to 2021, inflation-adjusted business investment per worker fell from $18,363 to $14,687. Declining investment has helped create Canada’s productivity crisis, which has led to a decline in Canadian living standards. Clearly, Ottawa needs a new policy approach to address this crisis.

Declining Living Standards: According to Statistics Canada, inflation-adjusted per-person GDP—a broad measure of living standards—dropped  from the post-pandemic peak of $60,718 in mid-2022 to $58,951 by the end of 2024. The next government should swiftly reverse this trend by enacting meaningful policy reforms that will help promote prosperity. The status quo simply will not suffice.

Tariffs are a clear threat to the Canadian economy and should be discussed at length during this election. But we shouldn’t forget other important issues that arose long before President Trump began this trade war and will continue to hurt Canadians if not addressed.

Jake Fuss

Director, Fiscal Studies, Fraser Institute

Grady Munro

Policy Analyst, Fraser Institute
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Business

CMHC dished out $30 million in bonuses in 2024

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By Ryan Thorpe 

The Canada Mortgage and Housing Corporation rubberstamped $30.8 million in bonuses in 2024, according to government records obtained by the Canadian Taxpayers Federation.

That pushes total bonuses at the CMHC up to $132 million since the beginning of 2020.

“Why are Canada’s housing bureaucrats showering themselves with bonuses when countless Canadians can’t afford homes?” said Franco Terrazzano, CTF Federal Director. “Canadians need more homes, not more highly paid pencil pushers rubberstamping bonuses for each other.”

A total of 2,398 CMHC staff (91 per cent of its employees) took $30.8 million in bonuses in 2024 – for an average of $12,865 each.

The records show that 12 CMHC executives took a combined $1 million in bonuses last year – for an average of $83,859 each.

The CMHC also issued 2,190 pay raises to staff in 2024, costing taxpayers $9.3 million. No employees took a pay cut, according to the records.

The CMHC has repeatedly claimed it’s “driven by one goal: housing affordability for all.”

In 2024, the Royal Bank of Canada said it was the “toughest time ever to afford a home.”

Last year, polling from Ipsos found 72 per cent of Canadians who do not own a home say “they have given up on ever owning” one.

Eighty per cent of respondents to that poll also said home ownership in Canada is now “only for the rich.”

The Canadian Real Estate Association, in its latest housing outlook report, predicted the average home price will “climb by 4.7 per cent on an annual basis to $722,221 in 2025.”

“The CMHC’s c-suite deserve pink slips more than huge bonuses,” Terrazzano said. “The federal government must stop rewarding failure with taxpayer-funded bonuses.”

Undeserved bonuses are a longstanding tradition in Ottawa.

The federal government has awarded $1.5 billion in bonuses since 2015, despite the fact that “less than 50 per cent of [performance] targets are consistently met within the same year,” according to the Parliamentary Budget Officer.

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