BILL NUMBER: AB 1439	CHAPTERED  10/03/05

	CHAPTER  459
	FILED WITH SECRETARY OF STATE  OCTOBER 3, 2005
	APPROVED BY GOVERNOR  OCTOBER 3, 2005
	PASSED THE SENATE  SEPTEMBER 1, 2005
	PASSED THE ASSEMBLY  MAY 31, 2005

INTRODUCED BY   Committee on Veterans Affairs (Gordon (Chair), DeVore
(Vice Chair), Canciamilla, Chavez, Evans, Oropeza, Plescia, Sharon
Runner, and Saldana)

                        FEBRUARY 22, 2005

   An act to amend Section 987.65 of the Military and Veterans Code,
relating to veterans.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1439, Committee on Veterans Affairs  Veteran benefits.
   The Veterans' Farm and Home Purchase Act of 1974 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 limits the amount that the department may
expend for purchasing a home or constructing a dwelling house and
other improvements to the then current maximum Fannie Mae loan limit
that is annually set by Fannie Mae for a single-family home and
limits the amount the department may expend for a farm to 150% of
that amount.
   This bill would raise these expenditure limits to 125% of the
maximum Fannie Mae loan limit for a single-family home, as provided,
and thereby increase the price that the department may pay for a farm
to 150% of that amount.


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


  SECTION 1.  Section 987.65 of the Military and Veterans Code is
amended to read:
   987.65.  (a) The purchase price of a home to the department, or
the sum to be expended by the department pursuant to a contract for
the construction of a dwelling house and other improvements, or the
purchase price of a mobilehome sited on a lot owned by the purchaser
and installed on a foundation system pursuant to Section 18551 of the
Health and Safety Code, or the purchase price of a mobilehome
converted to a fixture and improvement to the underlying real
property in a mobilehome park that has been converted to a
resident-owned subdivision, cooperative, condominium, or nonprofit
corporation as set forth in Section 18555 of the Health and Safety
Code, shall not exceed 125 percent of the then current maximum Fannie
Mae loan limit that is annually set by Fannie Mae for a
single-family home.
   (b) The purchase price of a mobilehome that is to be sited in a
mobilehome park, as defined in Section 18214 of the Health and Safety
Code, in addition to any assistance provided by the department to a
veteran pursuant to subdivision (e) of Section 987.85, may not exceed
one hundred twenty-five thousand dollars ($125,000).
   (c) A veteran purchasing the home may advance, subject to Section
987.64, the difference between the total price or cost of the home
and the sum of the purchase price of the home to the department and
any amount the department adds, under Section 987.69, to the purchase
price of the home in fixing the selling price to the veteran. Any
amount of the purchase price to the department may be provided by
funds from participation contracts or revenue bonds.
   (d) The purchase price of a farm to the department shall not
exceed 150 percent of the limit described in subdivision (a). A
veteran purchasing the farm may advance the difference between the
total price of the farm, or the cost of the dwelling and improvements
to be constructed on a farm under a contract, and the sum of the
purchase price to the department or contract price to the department
and any amount that the department adds, under Section 987.69, to the
purchase or contract price to the department in fixing the selling
price of the farm to the veteran.