BILL NUMBER: AB 1084 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 15, 2011
AMENDED IN SENATE JULY 12, 2011
INTRODUCED BY Assembly Member Davis
FEBRUARY 18, 2011
An act to amend Section 985 Sections 985,
987.53, 987.60 , 987.603, 987.67, 987.71, 987.75, 987.77,
and 987.84 of, to add Section Sections
987.93 and 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:
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.
The Veterans' Farm and Home Purchase Act of 1974 (act) 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. The act includes in the definition of "home" a
condominium, a mobilehome, and a residence with 2 or 4 units
occupied by veterans and their families. The act requires, before the
purchase of any property by the Department of Veterans Affairs, that
an appraisement of the market value of the property be filed with
the department by an employee or authorized agent of the department,
the Federal Housing Administration, or the Veteran's Administration.
The act requires the purchaser to make an initial payment of at least
2% of the selling price of the property and requires a loan to be
secured by a deed of trust. The act authorizes the department to pay,
satisfy, discharge, settle, and compromise the taxes, assessments,
charges, and encumbrances, and to insure buildings, improvements, and
crops, and to do work necessary to keep the home or farm in good
order and repair if the purchaser fails to do so. The act also
authorizes the department to add the costs of the purchaser's failure
to act onto the selling price of the property and authorizes the
department to seek repayment from the purchaser for these costs. The
act authorizes the department to cancel a contract, forfeiting all
rights of the purchaser, if the purchaser does not comply with any
terms of the purchase contract.
This bill would expand the definition of "home" to include a
cooperative dwelling unit, as defined. This bill would define
property, except when used in the phrase "real property" or "personal
property," as a farm or a home. This bill would also make changes
conforming to those definitions .
This bill would authorize the appraisement of the market value of
the property to also be filed by an appraiser licensed or certified
in this state. This bill would allow the department to require a
higher amount than 2% of the selling price of the property as an
initial payment, and would authorize the department to allow another
form of security, other than a deed of trust, to secure a loan. This
bill would authorize the department to add the costs of a stock
corporation's failure to pay, satisfy, discharge, settle, and
compromise the taxes, assessments, charges, and encumbrances, and to
insure buildings, improvements, and crops, and to do work necessary
to keep the property in good order and repair to the selling price of
the property and would authorize the department to seek repayment
from the stock corporation for these costs. This bill would require
the department to allow a stock cooperative to cure any failure by a
purchaser to comply with the terms of the purchase contract. This
bill would require that a purchaser's right to occupy the property
under its contract with the department not be subject to consent or
approval by the stock cooperative, and would require that a stock
cooperative enter into an agreement directly with the department as a
condition of taking title to a cooperative dwelling unit.
This bill would declare that it is to take effect immediately as
an urgency statute.
Vote: 2/3. Appropriation: 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.
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.
(n) "Shared equity cooperative" means a housing cooperative that
balances ongoing housing affordability and individual asset
accumulation. The department provides a loan to help a veteran
purchase property, in which a public entity or nonprofit organization
shares in any property price appreciation that occurs while the
veteran owns the property.
(o) "Shared equity cooperative housing loan" means a loan to a
National Guard member for the purchase of property in a shared equity
cooperative.
SEC. 4. Section 987.53 of the Military
and Veterans Code is amended to read:
987.53. As used in this article:
(a) "Farm" means a tract of land, which, in the opinion of the
department, is capable of producing sufficient income to provide
payment of the amortized contract installments, including principal,
interest, and taxes.
(b) "Home" means a parcel of real estate upon which there is a
dwelling house and 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. "Home" includes all of the following:
(1) A condominium as defined in subdivision (h).
(2) A mobilehome as defined in subdivision (k).
(3) A residence with two to four units, inclusive, that satisfies
the requirements of Section 143(k)(7) of the Internal Revenue Code
and that is only occupied by veterans and their families.
(4) A cooperative dwelling unit as defined in subdivision (s).
(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 rate of
interest on the unpaid balance due on a participation contract to
which the department's legal rights are subject, and the rate of
interest 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 sited one or more mobilehome modules, or a site
in a mobilehome park, as defined in Section 18214 of the Health and
Safety Code, on which one or more mobilehome modules is sited or is
to be sited 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.
However, where the mobilehome module or modules are sited on trust
land, "local governmental jurisdictions" means the tribal governing
body.
For purposes of this subdivision, "module" means a section of a
mobilehome at least 10 feet wide and at least 40 feet long.
(l) "Indian veteran" means a veteran, as defined in Section 980,
who, in addition, either belongs to an Indian tribe, band, group,
reservation, rancheria, or community which is recognized by the
United States as eligible for services from the United States Bureau
of Indian Affairs or is an Indian beneficiary and who is eligible
under this article for purchase by the department of a home or farm
sited on trust land.
(m) "Trust land," with respect to an Indian veteran, means land
held in trust by the United States government for individual Indians,
Indians who belong to Indian tribes, or Indian tribes.
(n) "Allotment trust land" means land held by the United States
under the Indian General Allotment Act of 1887, as amended, (Chapter
9 (commencing with Section 331) of Title 25 of the United States
Code), in trust for an individual Indian or for two or more Indians
holding individual interests in common. It includes both trust and
restricted public domain allotments and allotments within the
boundaries of an Indian reservation.
(o) "Tribal trust land" means land held in trust by the United
States for an Indian tribe or band.
(p) "Tribe" means any Indian tribe, band, group, reservation,
rancheria, or community which is recognized by the United States as
eligible for services from the United States Bureau of Indian
Affairs.
(q) "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.
(r) "Indian beneficiary" means an Indian for whom land is held in
trust by the United States government.
(s) "Cooperative dwelling unit" means a unit in a development
owned by a stock cooperative as defined in subdivision (m) of Section
1351 of the Civil Code, including a limited-equity housing
cooperative as defined in Section 817 of the Civil Code, or similar
entity, the exclusive occupancy of which is established in accordance
with cooperative dwelling unit ownership documents.
(t) "Cooperative dwelling unit ownership documents" means
cooperative housing stock together with any occupancy agreements or
similar arrangements between the stock company and the owner of the
cooperative housing stock. The cooperative dwelling unit ownership
documents for a cooperative dwelling unit shall have terms that are
acceptable to the department to allow the department to protect its
rights under the applicable contract of purchase.
(u) "Cooperative housing stock" means a certificate of stock, a
certificate of membership, or other evidence of ownership of an
interest, in a stock cooperative as defined in subdivision (m) of
Section 1351 of the Civil Code, including a limited-equity housing
cooperative as defined in Section 817 of the Civil Code, or similar
entity that entitles the purchaser to enter into occupancy agreements
or similar arrangements with the stock cooperative, including a
limited-equity housing cooperative, or similar entity, to occupy a
cooperative dwelling unit.
(v) "Property," except when used in the phrase "real property" or
"personal property," means a farm or a home.
SEC. 5. Section 987.60 of the Military
and Veterans Code is amended to read:
987.60. (a) The department may acquire the farm or home from its
owner or may contract with a veteran for the construction of a
dwelling house and other improvements for a farm
or home, upon the terms agreed under all of the following terms and
conditions:
(1) The department is satisfied of the desirability of the
property submitted.
(2) The veteran has agreed with the department that he or she, or
members of his or her immediate family, will actually reside on the
property within 60 days from the date of purchase by the department,
or, if the residence on the property is not complete on the date of
purchase, within 60 days after the residence is completed, and will
continue to reside on the property until all payments due the
department have been paid or the farm or home is sold, except where
the occupancy requirement is waived pursuant to Section 987.62.
(3) If the department is to contract with a veteran for the
construction of a dwelling house and other
buildings, or for the purchase of a mobilehome, all of the following
are required:
(A) The veteran shall be the owner of the real property on which
the dwelling house and other buildings are to be
constructed, or shall be the owner of the real property or shall be
the owner of an undivided interest in common in a portion of a parcel
of real property on which a mobilehome is to be situated, and agrees
to convey that property to the department without cost.
(B) The veteran has paid a reasonable fee set by the department to
cover the cost of any preliminary service of the department that may
be necessary to process the application.
(C) The veteran has filed with the department adequate plans and
specifications for the improvements to be constructed upon the real
property, together with a contract, executed by a contractor licensed
by the State of California for the construction of the improvements
in accordance with the plans and specifications within 12 months
after the acquisition of the real property by the
department. The department may require a bond or other security
instrument executed by the contractor in an amount determined by the
department providing for compliance with the terms of the contract
and for the payment of persons furnishing material or labor on the
job, executed by a surety company, or other financial institution,
authorized to do business in the State of California. The department
may also require course-of-construction insurance for public
liability, property damage, and workers' compensation.
(D) The plans, specifications, contract, and other required
documents or security instruments are approved by the department.
(E) The veteran has placed in escrow all sums of money to be
advanced by him or her, where the cost is in excess of the maximum
that may be expended by the department.
(b) As used in this section "immediate family" includes only the
veteran's spouse, natural or adoptive dependent children, and parents
only if the parents are dependent upon the veteran for 50 percent or
more of their support.
SEC. 6. Section 987.603 of the Military
and Veterans Code is amended to read:
987.603. The department may acquire an assignment of an Indian
veteran's beneficial interest in trust land held by the United States
for that veteran or a leasehold interest in trust land acquired by
the Indian veteran from an Indian beneficiary and contract with an
Indian veteran as provided in Sections 987.601 and 987.602 upon the
terms agreed if all of the following conditions are met:
(a) The department is satisfied of the desirability of the
property submitted.
(b) The Indian veteran has agreed with the department that the
veteran, or members of the veteran's immediate family, will actually
reside on the property within 60 days from the date of acquisition by
the department, or if the residence on the property is not complete
on the date of acquisition, within 60 days after the residence is
completed.
(c) The sum to be expended by the department pursuant to a
contract for the acquisition of a home or the construction of a
dwelling house and other improvements does not
exceed the maximum loan amount established pursuant to subdivision
(a) of Section 987.65. The sum to be expended by the department
pursuant to a contract for the acquisition of a mobilehome on trust
land or leasehold land does not exceed the maximum loan amount
established pursuant to subdivision (b) of Section 987.65. The sum to
be expended by the department pursuant to a contract for the
acquisition of a farm on trust land or leasehold land does not exceed
the maximum loan amount established pursuant to subdivision (e) of
Section 987.65.
(d) The Indian veteran has paid a reasonable fee set by the
department to cover the cost of preliminary service of the department
that may be necessary to process the application.
(e) The Indian veteran has filed with the department adequate
plans and specifications for the improvements to be constructed upon
the real property, together with a contract
executed by a contractor licensed by the State of California or by an
Indian contractor approved by the department for the construction of
the improvements, in accordance with the plans and specifications,
within 12 months after the assignment of the Indian veteran's
beneficial interest or acquisition of the Indian veteran's leasehold
interest in the real property by the department.
The department may require a bond or other security instrument
executed by the contractor in an amount determined by the department
providing for compliance with the terms of the contract and for the
payment of persons furnishing material or labor on the job, executed
by a surety company, or other financial institution, authorized to do
business in the State of California. The department may also require
course-of-construction insurance for public liability, property
damage, and workers' compensation.
(f) The plans, specifications, contract, and other required
documents or security instruments are approved by the department.
(g) The Indian veteran has placed in escrow all sums of money to
be advanced by the veteran where the cost is in excess of the maximum
that may be expended by the department.
SEC. 7. Section 987.67 of the Military
and Veterans Code is amended to read:
987.67. (a) Before Notwithstanding
subdivision (c), before the purchase of any property by the
department there shall be filed with the department (1) an
appraisement of the market value of the property by an employee or an
authorized agent of the department or ,
(2) an appraisement of the market value of the property by
either the Federal Housing Administration or the Veteran's
Administration, and in addition there may be filed with the
department an appraisement of the market value of the property by an
authorized appraiser of a banking corporation formed under the laws
of this state or of a national banking association having a place of
business in this state , or (3) an appraisement of the market
value of the property by an appraiser licensed or certified in this
state . Each appraisement shall be certified by the maker
thereof. The certification shall state that it is made in good faith,
and that the valuation is honestly determined and represents the
bona fide opinion of the maker.
(b) The department shall establish guidelines to ensure greater
participation of state-licensed or state-certified real
estate appraisers and shall establish an outreach program to
effectively disseminate information concerning the participation to
professional appraisal associations or trade groups.
SEC. 8. Section 987.71 of the Military
and Veterans Code is amended to read:
987.71. (a) The purchaser shall make an initial payment of at
least 2 percent of the selling price of the property or a higher
amount that shall be determined by the department, based on the
creditworthiness of the pur chaser . The department
may waive the initial payment in any case where the value of the
property as determined by the department from an appraisal equals the
amount to be paid by the department plus at least 5 percent. In the
case of a purchase requiring a loan guaranty by the United States
Department of Veterans Affairs, the department may waive the initial
payment and the purchaser shall pay the loan guaranty fee, which may
be added to the loan amount. The department may require the purchaser
to pay a loan origination fee, not to exceed 1 percent of the loan
amount, which may be added to the loan amount.
(b) The balance of the loan amount may be amortized over a period
fixed by the department, not exceeding 40 years for farms or homes
, not including cooperative housing stock related to
mobilehomes, and not exceeding 30 years for mobilehomes ,
including cooperative housing stock related to mobilehomes,
located in mobilehome parks, as defined in Section 18214 of the
Health and Safety Code, together with interest thereon at the rate
determined by the department pursuant to Section 987.87 for these
amortization purposes.
(c) The department may, in order to allow the veteran to purchase
the home selected without incurring excessive monthly payments, at
the time of initial purchase, postpone the commencement of payment of
the principal balance for a period not to exceed five years if the
veteran's current income meets the standards for purchase on these
terms and if the department determines, in accordance with previously
established criteria for these determinations, that the veteran's
income can reasonably be expected to increase sufficiently within the
five-year period to make the transition to fully amortized principal
and interest payments, so long as the total term of the contract of
purchase does not exceed 40 years, or 30 years where the contract
relates to a mobilehome located in a mobilehome park, as defined in
Section 18214 of the Health and Safety Code.
(d) The purchaser on any installment date may pay any or all
installments still remaining unpaid.
(e) In any individual case, the department may for good cause
postpone, from time to time, upon terms the department determines to
be proper, the payment of the whole or any part of any installment of
the purchase price or interest thereon.
(f) Each installment shall include an amount sufficient to pay the
principal and interest on the participation contract to which the
interest of the department is subject, and any amount as may be
required by a covenant or provision contained in any resolution of
issuance.
(g) When a purchaser makes an initial payment of less than 20
percent of the selling price of the property, the department shall do
all of the following:
(1) Take prudent measures to minimize losses from loan defaults
and loan delinquencies.
(2) (A) Ensure the continued financial solvency of the loan
program by charging fees to cover the costs, as determined by the
department, of any loan guaranty, primary mortgage insurance, or
other similar arrangement.
(B) Fees charged under this paragraph may be included in the
amount of the loan, collected in advance, or collected as part of the
monthly payment.
(h) (1) Subject to paragraph (2), the department may provide
initial payment assistance to lower income first-time purchasers by
providing a deferred-payment second loan, upon which simple interest
shall be charged at a rate established by the department.
(2) A deferred-payment second loan described in paragraph (1) is
subject to all of the following conditions:
(A) The loan may not exceed 3 percent of the selling price of the
farm or home.
(B) The loan shall be secured by a deed of trust or, if
authorized by the department, another form of security .
(C) The loan shall be due and payable upon the payment in full of
the contract or upon the sale or transfer of the farm or home.
SEC. 9. Section 987.75 of the Military
and Veterans Code is amended to read:
987.75. (a) If the purchaser or, if
applicable, the related stock corporation, fails or neglects to
pay, satisfy, and discharge at maturity all taxes and assessments,
and all other charges and encumbrances which are a lien upon the
property being purchased from the department, or any part thereof,
and also all taxes and assessments levied or assessed upon the
interest created by the contract of purchase of such property; or to
keep the buildings, fences, other permanent improvements upon such
property insured and in good order and repair, or to keep the crops
upon such property insured; or to keep in good order and repair all
buildings, fences, and other permanent improvements situated upon
such property; then, in such event, the department may pay, satisfy,
discharge, settle, or compromise the taxes, assessments, charges, or
encumbrances, or insure the buildings, fences, permanent
improvements, or crops, or do the work and supply the materials
necessary to keep the buildings, fences, and other improvements in
good order and repair. All moneys so expended by the department shall
be added to the selling price of the property and bear interest at
the rate of interest designated in Section 987.71 from the date of
expending the same, and shall be repaid by the purchaser to the
department on demand. The department may amortize the repayment of
such expenditures or permit repayment in installments upon the terms
and conditions which it deems proper.
SEC. 10. Section 987.77 of the Military
and Veterans Code is amended to read:
987.77. In the event of a failure of a purchaser to comply with
any of the terms of his contract of purchase, the department may
cancel such contract, and thereupon be released from all obligations,
at law or in equity, to convey the property, and the purchaser shall
forfeit all right thereto. All payments theretofore made shall be
deemed to be rental paid for occupancy. Upon such forfeiture, the
department shall take possession of the property covered by such
contract, and shall remove all persons and personal property
therefrom without any liability whatsoever on the part of the
department or of any official or employee thereof for any damage or
injury caused by or incident to the entry or removal. The failure of
the department to exercise any option to cancel or to exercise any
other privilege under such contract for any default shall not
constitute a waiver of the right to exercise such option or privilege
for any other default on the part of the purchaser. The
department shall allow a stock cooperative, as defined in subdivision
(m) of Section 1351 of the Civil Code, the opportunity to cure any
failure by a purchaser described in this section.
SEC. 11. Section 987.84 of the Military
and Veterans Code is amended to read:
987.84. The right to declare a forfeiture for breach of a
condition contained in any deed to real property or in any
cooperative dwelling unit ownership documents may not be
enforced as against the interest of the department in said
real property or any portion thereof.
SEC. 12. Section 987.93 is added to the
Military and Veterans Code , to read:
987.93. Where the property consists of a cooperative dwelling
unit:
(a) The purchaser's right to occupy the property under its
contract with the department shall not be subject to consent or
approval by the stock cooperative, as defined in subdivision (m) of
Section 1351 of the Civil Code, nor shall there be any fee or
surcharge imposed by the stock cooperative as a result of the right
of occupancy, provided that the foregoing shall not affect the rights
that the stock cooperative may have under the applicable cooperative
dwelling unit ownership documents to approve the
initial acquisition of the cooperative
dwelling unit by the department on behalf of the purchaser.
(b) As a condition to taking title to a cooperative dwelling unit,
the department shall require that the stock cooperative enter into
an agreement directly with the department, which agreement shall be
in a form established by the department and shall provide for such
matters as the department may determine relating to (1) the
enforcement by the stock cooperative of its rights in the event that
the purchaser defaults under the cooperative dwelling unit ownership
documents, (2) the enforcement by the department of its rights in the
event the purchaser defaults under its contract with the department,
and (3) such other matters as the department may determine to be
necessary to reasonably protect its interest in the property.
SEC. 4. SEC. 13. 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. SEC. 14. Sections 1 and 2 of
this bill shall become operative ____ days after the effective date
of this bill. However, any loans loan
to a California National Guard members
member 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. SEC. 15. 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.