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It is a loan. As stated.
So California not only wants millions upon millions of illegal migrants crossing the border and give them free healthcare, they also want to give them homes at taxpayer's expense. Thanks, libs. I wonder what's next after this? Give illegals tens of millions so they can run for Congress? Maybe even POTUS after they change the law?
Local, state and federal government give out assistance for home loans to citizens. At fellow taxpayer expense.
FHA and VA both have/are programs to help Americans with purchasing homes. Many states have mortgage assistance.

Home buying assistance | USAGov
Learn about government programs that make it easier to buy a home, including loans, mortgage assistance, and vouchers for first-time home buyers.

https://www.sofi.com/first-time-home-buyer-programs-in-maryland/ (other states do this as well, just look it up)
You are getting bent out of shape over literally nothing.