(The Center Square) – The California legislature passed a bill Wednesday allowing undocumented immigrants to make use of the state’s $150,000, 0 down, 0 interest home “loans.” The bill now goes to the governor’s desk, where he must either veto or approve the bill by the end of September.

California has one of the worst home shortages in the nation, with an estimated 4.5 million home shortage, and a nearly $1 million median home price.

“Many generational Californians can’t afford to buy a house in their home state thanks to Democrats’ unsustainable economic policies,” said State Senate Minority Leader Brian W. Jones, R-San Diego, in a statement urging California Gov. Gavin Newsom to veto the bill. “This policy is not only unfair but also sends a dangerous message: ‘Come to California, whether legally or illegally, and claim your $150,000 home loan.’”

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.

Last year, the state allocated $255 million for the program for 1,700 lucky “winners” of an application lottery. This year, the state did not fund the program at all as it narrowly balanced a $47 billion budget deficit.

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.

The bill now goes to Newsom’s desk for approval where it faces an uncertain future. The governor has often used the state’s poor finances to justify vetoing bills popular with California Democrats but unpopular nationwide.