It'll probably get knocked down for the same reason other state laws regulating immigration has, only the federal government can regulate immigration.

There's a better way to do this anyway. You just require that a landlord get a copy of the person's state ID before renting. You don't give state IDs to illegals. If landlord doesn't, he can't collect rent. While it seems like a win for illegals, trust me.... landlords will start checking IDs.