BILL ANALYSIS                                                                                                                                                                                                    

                                                                  AB 2087
                                                                  Page  1

          AB 2087 (Torres)
          As Amended  April 19, 2010
          Majority vote 

           VETERANS AFFAIRS    9-0         APPROPRIATIONS      12-5        
          |Ayes:|Cook, Salas, Block,       |Ayes:|Fuentes, Ammiano,         |
          |     |Knight, Gilmore, Lieu, V. |     |Bradford,                 |
          |     |Manuel Perez, Saldana,    |     |Charles Calderon, Coto,   |
          |     |Yamada                    |     |Davis, Monning, Ruskin,   |
          |     |                          |     |Skinner, Solorio,         |
          |     |                          |     |Torlakson, Torrico        |
          |     |                          |     |                          |
          |                                |Nays:|Conway, Harkey, Miller,   |
          |                                |     |Nielsen, Norby            |

           SUMMARY  :   Expands the definition of "home," for purposes of the  
          CalVet Home Loan Program, to include a residence of two to four  
          units that otherwise meets specified requirements of the federal  
          Internal Revenue Code.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, expands the types of dwellings that could be  
          purchased under the CalVet program could increase demand for  
          loans.  The net impact of this change on the Farm and Home  
          Building Fund of 1943 is unknown, but could exceed $150,000 in  
          any fiscal year.

           COMMENTS  :   The California Military and Veterans (M&V) Code does  
          not mirror the Internal Revenue Service 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 2087
                                                                  Page  2

          AB 1330 (Salas), Chapter 524, Statutes of 2009, authorizes the  
          California Department of Veterans Affairs (CDVA) to set up a  
          pilot project for the purpose of operating co-op housing  
          projects for veterans.  CDVA is sponsoring this bill to add two-  
          and four- unit multifamily housing units to the definition of  
          home because they feel this 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-unit multifamily 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 CDVA's 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.  

           Analysis Prepared by  :    Eric Worthen / V. A. / (916) 319-3550  
          FN: 0004664