BILL ANALYSIS AB 2087 Page 1 ASSEMBLY THIRD READING 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 year. 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