BILL NUMBER: AB 2266	CHAPTERED  09/28/04

	CHAPTER  834
	FILED WITH SECRETARY OF STATE  SEPTEMBER 28, 2004
	APPROVED BY GOVERNOR  SEPTEMBER 28, 2004
	PASSED THE SENATE  AUGUST 18, 2004
	PASSED THE ASSEMBLY  MAY 26, 2004

INTRODUCED BY   Committee on Veterans Affairs (Parra (Chair), Dutton
(Vice Chair), Cohn, Kehoe, Matthews, Mullin, Nakano, Runner, and
Wiggins)

                        FEBRUARY 19, 2004

   An act to amend Section 985 of the Military and Veterans Code,
relating to veterans.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2266, Committee on Veterans Affairs.    Military and veterans:
Cal-Vet Farm and Home Loan program.
   Existing law provides for farm and home purchase benefits for
qualifying veterans under the Veterans' Farm and Home Purchase Act of
1974 and subsequent acts.  It authorizes the Department of Veterans
Affairs to assist veterans in acquiring homes and farms by generally
providing that the department may purchase a farm or home, which the
department then sells to a purchaser, as defined.  Existing law
defines "home" to include, among other things, a condominium and a
mobilehome.
   This bill would expand the definition of "home" to include
cooperative housing, as defined.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 985 of the Military and Veterans Code is
amended to read:
   985.  As used in this article:
   (a) "Farm" means a tract of land, which, in the opinion of the
department, is capable of producing sufficiently to provide a living
for the purchaser and the purchaser's dependents.
   (b) "Home" means any of the following:
   (A) A parcel of real estate upon which there is a dwelling house
and other buildings that will, in the opinion of the department, suit
the needs of the purchaser and the purchaser's dependents as a place
of abode.
   (B) Condominium, as defined in subdivision (h).
   (C) Mobilehome, as defined in subdivision (k).
   (D) Cooperative housing, as defined in subdivision (m).
   (c) "Purchaser" means a veteran or any person who has entered into
a contract of purchase of a farm or home from the department.
   (d) "Purchase price" means the price which the department pays for
any farm or home.
   (e) "Selling price" means the price for which the department sells
any farm or home.
   (f) "Initial payment" means the first payment to be made by a
purchaser to the department for a farm or home.
   (g) "Progress payment plan" means payment by the department for
improvements on real property in installments as work progresses.
   (h) "Condominium" means an estate in real property consisting of
an undivided interest in common in a portion of a parcel of real
property together with a separate interest in space in a residential
building on the real property, such as an apartment, which, in the
opinion of the department, suits the needs of the purchaser and the
purchaser's dependents as a place of abode.  A condominium may
include, in addition, a separate interest in other portions of the
real property.
   (i) "Effective rate of interest" means the average interest rate
of the interest on the unpaid balance due on a participation contract
to which the interest of the department is subject and the interest
rate on the unpaid balance of the purchase price, as determined by
the department.
   (j) "Participation contract" means an obligation secured by a deed
of trust or mortgage, or other security interest established
pursuant to regulations of the department.
   (k) "Mobilehome" means either a parcel of real estate, or an
undivided interest in common in a portion of a parcel of real
property, on which is situated a mobilehome that will, in the opinion
of the department, suit the needs of the purchaser and the purchaser'
s dependents as a place of abode and meets all requirements of local
governmental jurisdictions.
   (l) "Immediate family" means the spouse of a purchaser, the
natural or adopted dependent children of the purchaser, and the
parents of the purchaser if they are dependent on the purchaser for
50 percent or more of their support.
   (m) "Cooperative housing corporation" means a real estate
development in which membership in the corporation, by stock
ownership, is coupled with the exclusive right to possess a portion
of the real property.