BILL ANALYSIS Ó
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THIRD READING
Bill No: AB 1224
Author: Assembly Veterans Affairs Committee
Amended: 8/14/12 in Senate
Vote: 27 - Urgency
SENATE VETERANS AFFAIRS COMMITTEE : 7-0, 4/10/12
AYES: Correa, Cannella, Berryhill, Calderon, Negrete
McLeod, Rubio, Lieu
NO VOTE RECORDED: Runner
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : Not relevant
SUBJECT : Veterans: veterans farm and home purchases
SOURCE : Author
DIGEST : This bill authorizes the Department of Veterans
Affairs (DVA) to adopt regulations necessary to implement
the Veterans Farm and Home Purchase Act of 1974 for
cooperative dwelling units in accordance with the
Administrative Procedure Act. This bill also revises
provisions relating to forfeiture and the calculation of
net gain in connection with the sale of a cooperative
dwelling unit.
Senate Floor Amendments of 8/14/12 add creditworthiness to
the equation for cooperative housing loans.
CONTINUED
AB 1224
Page
2
ANALYSIS : The Veterans' Farm and Home Purchase Act of
1974 (Act) authorizes the DVA to assist veterans in
acquiring homes and farms, including cooperative dwelling
units, by generally providing that the DVA may purchase a
farm or home that the DVA then sells to a purchaser, as
defined.
The Act requires the purchaser to make an initial payment
of at least 2% of the selling price of the property or a
higher amount as determined by the DVA based on the
creditworthiness of the purchaser.
This bill eliminates the requirement that the higher amount
determined by the department to be paid by the purchaser be
based on the creditworthiness of the purchaser and instead
provides that the higher amount be determined based upon
the creditworthiness of the purchaser, and with
consideration of his/her military record, employment
record, financial condition, and other similar factors as
determined by the DVA.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
RM:m 8/14/12 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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