BILL ANALYSIS Ó
AB 1084
Page 1
Date of Hearing: April 26, 2011
ASSEMBLY COMMITTEE ON VETERANS AFFAIRS
Paul J. Cook, Chair
AB 1084 (Davis) - As Introduced: February 18, 2011
REVISED TO CORRECT A TECHNICAL NUMERICAL ERROR IN COMMENTS
SUBJECT : Veterans' farm and home purchases: definitions: home.
SUMMARY : The bill would, in the context of the California
Veteran Home Loan Program (CALVET), expand the definition of
cooperative housing corporation to include a shared equity
cooperative.
EXISTING LAW: 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 CALVET. 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.
FISCAL EFFECT : Unknown.
COMMENTS : The California Department of Veterans' Affairs (the
"Department") administers CALVET pursuant to statutory
authority. The stated objective of CALVET is to provide
veterans with the opportunity to acquire farms and homes. When
CALVET was created in 1943, California was a different place in
terms of farming and homeownership, as well as the rural/urban
boundaries. In 1943, there were approximately 8.5 million people
living in California, according to the U.S. Census. In 2009,
there were approximately 37 million residents. In 1940,
Sacramento County had an estimated 170,333 residents. In 2009,
Sacramento County was home to approximately 1,500,000 people.
It is reasonable to conclude that, with changes like these, the
housing needs of the population, including veterans, has also
changed.
Co-op housing is a form of home ownership in which a corporation
owns residential property, typically a condominium style
property. Owners purchase a share in the corporation which
gives them an exclusive right to occupy a particular unit owned
AB 1084
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by the corporation. A shared equity co-op is similar to a
regular co-op except that a portion of the corporation is owned
by a non-profit who "shares" the unit with the buyer/homeowner.
Purchase of the shared equity units is limited to defined
low-income buyers, seniors, families, veterans, etc. When the
homeowner sells, a portion of the equity gain is shared with the
non-profit partner and shared equity co-ops provide low income
individuals and families the opportunity to become homeowners.
Existing law currently allows veterans to buy into a traditional
co-op but not into a shared equity co-op. According to the
sponsor, the California Association of Veteran Service Agencies
that expanding CALVET to shared equity co-ops will provide a way
for low income veterans and their families to become homeowners
and expand the pool of safe, affordable low income housing.
Policy Question: Should the term "shared equity cooperative be
defined in the bill or is it sufficiently a term of art that it
needs no further definition?
Related Legislation: AB 1330 (Salas) Chapter 524, Stats. 2009
Authorized the Department to establish a pilot project for a
cooperative housing project, in which the Department prescribes
the rules, regulations, and conditions necessary to implement
the pilot project. The bill requires that any cooperative
housing project established pursuant to those provisions be
restricted for use and occupancy by military veterans and their
families for a period of at least 55 years.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file.
Opposition
None on file.
Analysis Prepared by : John Spangler / V. A. / (916) 319-3550