BILL ANALYSIS                                                                                                                                                                                                    

                                                                  AB 2087
                                                                  Page  1

          Date of Hearing:   April 13, 2010

                                 Paul J. Cook, Chair
                    AB 2087 (Torres) - As Amended:  April 6, 2010
          SUBJECT  :   Veterans' housing.

           SUMMARY  :   This bill would expand the definition of home to  
          include residences with 2 to 4 units, inclusive, that satisfy  
          specified requirements.

           EXISTING LAW    

          1.Provides for farm and home purchase benefits for qualifying  
            veterans under the Veterans' Farm and Home Purchase Act of  
            1974, and subsequent acts, which are collectively referred to  
            as the CalVet Home Loan program. 
          2.Defines "home" for purposes of this program to mean a parcel  
            of real estate upon which there is a dwelling house and other  
            buildings that will suit the needs of the purchaser and the  
            purchaser's dependents as a place of abode, which includes a  
            condominium, as defined, and a mobilehome. Current law 
          3.Allows the California Department of Veterans Affairs to  
            finance a veteran's purchase of an individual share (unit)  
            within a cooperative.

           FISCAL EFFECT  :   Unknown.

           COMMENTS  :   M & V code does not mirror the IRS code that allows  
          veterans to purchase duplexes, triplexes and fourplexes.  A  
          change in the M&V code would allow CalVet to make these type of  
          loans to veterans.   This will allow Veterans to be able to  
          purchase this type of housing which may be helpful for extended  
          family housing.  It will also provide dwellings that are  
          duplexes, triplexes, or fourplexes that would be the best format  
          for cooperative housing as identified in AB 1330 passed last  

          AB 1330 (Salas) which was enacted last year, authorizes the  
          California Department of Veterans Affairs to set up a pilot  
          project for the purpose of operating co-op housing projects for  
          veterans. the California Department of Veterans Affairs s  
          sponsoring this bill, to add two- and four- unit multifamily  
          housing units to the definition of home because they feel this  


                                                                  AB 2087
                                                                  Page  2

          change is necessary to allow cooperative housing as a possible  
          use under the CalVET program. 

          Veterans benefit from a living situation which includes other  
          veterans.  By expanding the definition of home to include two  
          and four multi-family units, this bill is intended to permit  
          veterans to collectively purchase a duplex or four-plex so that  
          they can live in a supportive environment.  

           Stated Goals
           If it is the California Department of Veterans Affairs' goal to  
          enact legislation that would allow it to finance cooperative  
          housing projects for veterans, the committee may wish to examine  
          whether adding affordability language would be in keeping with  
          the intent of AB 1330, which was to provide an affordable  
          housing product to veterans and their families.


          American Legion, Department of California

          None on file.
          Analysis Prepared by  :    Eric Worthen / V. A. / (916) 319-3550