BILL NUMBER: AB 1084 AMENDED
BILL TEXT
AMENDED IN SENATE JULY 12, 2011
INTRODUCED BY Assembly Member Davis
FEBRUARY 18, 2011
An act to amend Section 985 of , to add Section 988.7 to, and
to repeal Article 4 (commencing with Section 270) of Chapter 3 of,
and Article 1 (commencing with Section 480) of Chapter 10 of, Part 1
of Division 2 of, the Military and Veterans Code, relating to
veterans , making an appropriation therefor, and declaring the
urgency thereof, to take effect immediately .
LEGISLATIVE COUNSEL'S DIGEST
AB 1084, as amended, Davis. Veterans' farm and home
purchases: definitions: home purchases: shared equity
cooperative housing .
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.
The California National Guard Members' Farm and Home Purchase Act
of 1978, administered by the Department of Veterans Affairs, provides
for farm and home purchase benefits for designated members of the
California National Guard. The California National Guard Members'
Revenue Bond Act of 1978 authorizes, and prescribes a procedure for,
the issuance of debentures for home, farm, and mobilehome loans under
the California National Guard Members' Farm and Home Purchase Act of
1978. The California National Guard Members' Revenue Bond Act of
1978 creates the California National Guard Members' Farm and Home
Building Fund of 1978, and creates special accounts in that fund,
including, but not limited to, the National Guard Members' Revenue
Bond Revenue Account.
This bill would require all moneys in the California National
Guard Members' Farm and Home Building Fund of 1978 and in any account
created in that fund that are not needed to meet revenue bond
obligations to be deposited into the Veterans' Farm and Home Building
Fund of 1943. This bill would also require any revenues that would
have otherwise been required to be deposited into the California
National Guard Members' Farm and Home Building Fund of 1978, or any
other account in that fund, to be deposited into the Veterans' Farm
and Home Building Fund of 1943. This bill would continuously
appropriate all moneys deposited into the Veterans' Farm and Home
Building Fund of 1943 pursuant to this bill to the department, and
would require those moneys to be used by the department to make
shared equity cooperative housing loans.
This bill would repeal the California National Guard Members' Farm
and Home Purchase Act of 1978 and the California National Guard
Members' Revenue Bond Act of 1978, as provided.
This bill would declare that it is to take effect immediately as
an urgency statute.
Vote: majority 2/3 . Appropriation:
no yes . Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Article 4 (commencing with Section 270)
of Chapter 3 of Part 1 of Division 2 of the Military and
Veterans Code is repealed.
SEC. 2. Article 1 (commencing with Section 480) of
Chapter 10 of Part 1 of Division 2 of the Military and
Veterans Code is repealed.
SECTION 1. SEC. 3. 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:
(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.
SEC. 4. Section 988.7 is added to the
Military and Veterans Code , to read:
988.7. (a) (1) Notwithstanding any other law, all moneys in the
California National Guard Members' Farm and Home Building Fund of
1978 and any other account created in that fund, including, but not
limited to, the National Guard Members' Revenue Bond Revenue Account,
that are not needed to meet revenue bond obligations shall be
deposited into the Veterans' Farm and Home Building Fund of 1943
within ____ days after the effective date of this section.
(2) Notwithstanding any other law, on and after the effective date
of this section, any revenues that would have otherwise been
required to be deposited into the National Guard Members' Revenue
Bond Revenue Account pursuant to Section 485.1, the California
National Guard Members' Farm and Home Building Fund of 1978, or any
other account in that fund, shall be deposited into the Veterans'
Farm and Home Building Fund of 1943.
(b) Notwithstanding Section 13340 of the Government Code, all
moneys deposited into the Veterans' Farm and Home Building Fund of
1943 pursuant to subdivision (a) are hereby continuously
appropriated, without regard to fiscal year, to the department, and
shall be used by the department to make shared equity cooperative
housing loans.
SEC. 5. Sections 1 and 2 of this bill shall become
operative ____ days after the effective date of this bill. However,
any loans to California National Guard members made pursuant to the
California National Guard Members' Farm and Home Purchase Act of 1978
(Article 4 (commencing with Section 270) of Chapter 3 of Part 1 of
Division 2 of the Military and Veterans Code) that is still in
existence after that date shall continue to be administered by the
Department of Veterans Affairs. All rights and obligations acquired
under the California National Guard Members' Farm and Home Purchase
Act of 1978 by a purchaser and by the department prior to that date
shall continue to exist.
SEC. 6. This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
In order to allow the CalVet Home Loan Program to offer housing
finance opportunities to low-income veterans, young veterans,
veterans in need of specific services, and other special needs
veterans, and to allow the Department of Veterans Affairs to make
shared equity cooperative housing loans as soon as possible, it is
necessary that this act go into immediate effect.