Undocumented immigrants may soon receive equal access to state and federal grant money assisting low-income families pursuing home ownership in Madison.
The Community Development Block Grant Commission will consider a move to extend funding options to immigrants seeking government-backed loans for buying a home.
The commission discussed the financial risks associated with providing grant money for low-income and undocumented immigrants on Thursday, with some members expressing support for the plan.
Undocumented immigrant workers are as risky an investment as anyone else, commission member Barb Costanis said.
Ald. Austin King, District 8, expressed frustration that the proposal was not passed. \It's the right step for the city. This is something that affects the community,"" King said.
King predicts that the commission will split on approval of the initiative.
The new proposal would allow the city, in conjunction with investment firms, to offer low-interest loans to undocumented workers.
The commission discussed how the income of these workers is taxed whether they have a Social Security number or not. Workers without a Social Security number are given a similar tax-related identification number, called an Individual Taxpayer Identification Number, meant for people ineligible for citizenship.
Working residents, documentation or not, are members of the community, King said. ""It's the American dream,"" he added.
As it stands, the government program Operation Head Start supports low-income families who want to be homeowners. The program offers assistance based on the work history, credit history and rental history of the all income earning family members.
The loan financing being discussed would require the city to take on slightly greater risk to get families into a home ownership position .
Costanis expressed concern that the city would risk loosing its investments if the Department of Homeland Security began deporting undocumented immigrants under the assistance of the program.
""Our loan portfolio hasn't seen any foreclosures,"" she said, referring to residents already supported by existing policy. ""But if you're an undocumented resident and Homeland Security can walk in and send you back because you're missing a piece of paper-that is a real concern to lending to undocumented residents.""
Commission member Steven Bartlett pointed out that in addition to the risk of lending to undocumented aliens, the city must face the continuing burden of limited funds that will reduce the city's ability to expand the number of lending recipients.
