BILL NUMBER: AB 697	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 4, 2011
	AMENDED IN ASSEMBLY  APRIL 4, 2011

INTRODUCED BY   Assembly Member V. Manuel Pérez
   (Coauthors: Assembly Members Block, Blumenfield, Chesbro, Cook,
Dickinson, Huffman, Jeffries,  Bonnie Lowenthal,  Monning,
Nielsen, and Williams)
   (Coauthor: Senator Runner)

                        FEBRUARY 17, 2011

   An act to amend Section 987.85 of the Military and Veterans Code,
relating to veterans.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 697, as amended, V. Manuel Pérez. Veteran: acquisition of home:
interest of record.
   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 prohibits the department, except in limited
circumstances, from acquiring a home in which the veteran has an
interest of record.
   This bill would  eliminate this prohibition, and would
instead  authorize the department to acquire a home 
in which the veteran has an interest of record  for the
purpose of refinancing an existing mortgage loan  , as
provided   that is not an existing loan acquired under
the Veterans' Farm and Home Purchase Act of 1974  . This bill
would require the department to adopt and publish rules and
regulations, as specified.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

   SECTION 1.    Section 987.85 of the  
Military and Veterans Code   is amended to read: 
   987.85.   (a)    The department shall not
acquire a home in which the veteran has an interest of record except
in the following instances: 
   (a) 
    (1)  Where the application is for aid for the
construction of a home upon real property owned by the applicant and
the improvements to be constructed thereon have not reached
completion as evidenced by the issuance of a certificate of
occupancy. 
   (b) 
    (2)  Where the veteran had no interest of record in the
property at the time of filing his or her application and thereafter
secured interim financing pending the processing and approval of the
application by the department. 
   (c) 
    (3)  Where the application is for the purchase of a
mobilehome to be situated upon real property, or an undivided
interest therein, owned by the applicant. 
   (d) 
    (4)  Where the applicant is an Indian veteran and the
application is for the construction of a dwelling house or other
improvements on, or for the purchase of a mobilehome to be sited on,
trust land in which the Indian veteran has a beneficial interest or
owns an interest of record. 
   (e) 
    (5)  Where the application is for assistance to enable
the veteran to purchase his or her space, or share in a mobilehome
park, which is converted from a rental park to a nonprofit corporate
resident-owned park or subdivision, cooperative, or condominium for
mobilehomes, in which the veteran resides in his or her mobilehome. A
veteran applying for assistance under this subdivision shall not be
required to have his or her mobilehome reinstalled on a permanent
foundation system as a condition of receiving the proceeds of the
loan to purchase his or her space or share of the park. This
subdivision shall be implemented by the department only to the extent
that expenditures for the kind of financial assistance to veterans
enumerated herein conform to the requirements of federal tax law with
regard to the tax-exempt status of funding instruments utilized to
provide the assistance. 
   (b) Notwithstanding subdivision (a), the department may acquire a
home for the purpose of refinancing an existing mortgage loan that is
not a mortgage loan acquired under the Veterans' Farm and Home
Purchase Act of 1974, known as the Cal-Vet loan program.  
   (1) The certain funds used by the department for the purposes
described in this subdivision shall be used in accordance with
federal laws and regulations governing the use of qualified mortgage
bonds and qualified veterans' mortgage bonds.  
   (2) The department shall, consistent with the purposes of this
article, adopt and publish rules and regulations that are necessary
to implement this section.  
  SECTION 1.    Section 987.85 of the Military and
Veterans Code is amended to read:
   987.85.  (a) The department may acquire a home in which the
veteran has an interest of record for the purpose of refinancing an
existing mortgage loan.
   (b) The certain funds used by the department for the purpose
specified in subdivision (a) shall be used in accordance with federal
laws and regulations governing the use of qualified mortgage bonds
and qualified veterans' mortgage bonds.
   (c) The department shall, consistent with the purposes of this
article, adopt and publish rules and regulations that are necessary
to implement this section.