BILL NUMBER: AB 1084	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Davis

                        FEBRUARY 18, 2011

   An act to amend Section 985 of the Military and Veterans Code,
relating to veterans.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1084, as introduced, Davis. Veterans' farm and home purchases:
definitions: home.
   Existing law provides for farm and home purchase benefits for
qualifying veterans under the Veterans' Farm and Home Purchase Act of
1943, and subsequent acts, which are collectively referred to as the
CalVet Home Loan program. Existing law defines "cooperative housing
corporation" for purposes of this program to mean a real estate
development in which membership in the corporation, by stock, is
coupled with the exclusive right to possess a portion of the real
property.
   The bill would expand the definition of cooperative housing
corporation to include a shared equity cooperative.
   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 985 of the Military and Veterans Code is
amended to read:
   985.  As used in this article:
   (a) "Farm" means a tract of land, which, in the opinion of the
department, is capable of producing sufficiently to provide a living
for the purchaser and the purchaser's dependents.
   (b) "Home" means any of the following:
   (1) A parcel of real estate upon which there is a dwelling house
or other buildings that will, in the opinion of the department, suit
the needs of the purchaser and the purchaser's dependents as a place
of abode.
   (2) Condominium, as defined in subdivision (h).
   (3) Mobilehome, as defined in subdivision (k).
   (4) Cooperative housing, as defined in subdivision (m).
   (c) "Purchaser" means a veteran or any person who has entered into
a contract of purchase of a farm or home from the department.
   (d) "Purchase price" means the price which the department pays for
any farm or home.
   (e) "Selling price" means the price for which the department sells
any farm or home.
   (f) "Initial payment" means the first payment to be made by a
purchaser to the department for a farm or home.
   (g) "Progress payment plan" means payment by the department for
improvements on real property in installments as work progresses.
   (h) "Condominium" means an estate in real property consisting of
an undivided interest in common in a portion of a parcel of real
property together with a separate interest in space in a residential
building on the real property, such as an apartment, which, in the
opinion of the department, suits the needs of the purchaser and the
purchaser's dependents as a place of abode. A condominium may
include, in addition, a separate interest in other portions of the
real property.
   (i) "Effective rate of interest" means the average interest rate
of the interest on the unpaid balance due on a participation contract
to which the interest of the department is subject and the interest
rate on the unpaid balance of the purchase price, as determined by
the department.
   (j) "Participation contract" means an obligation secured by a deed
of trust or mortgage, or other security interest established
pursuant to regulations of the department.
   (k) "Mobilehome" means either a parcel of real estate, or an
undivided interest in common in a portion of a parcel of real
property, on which is situated a mobilehome that will, in the opinion
of the department, suit the needs of the purchaser and the purchaser'
s dependents as a place of abode and meets all requirements of local
governmental jurisdictions.
   (  l  ) "Immediate family" means the spouse of a
purchaser, the natural or adopted dependent children of the
purchaser, and the parents of the purchaser if they are dependent on
the purchaser for 50 percent or more of their support.
   (m) "Cooperative housing corporation" means  both of the
following:   a 
    (1)     A  real estate development in
which membership in the corporation, by stock ownership, is coupled
with the exclusive right to possess a portion of the real property.

   (2) A shared equity cooperative.