AB 637, as amended, Atkins. Housing assistance.
Existing law requires the California Housing Finance Agency to administer the California Homebuyer’s Downpayment Assistance Program for the purpose of assisting first-time low- and moderate-income home buyers utilizing existing mortgage financing. Existing law allows the agency to use not more than $75,000,000 of the funds available pursuant to that provision to finance the acquisition of land and the construction and development of for-sale residential structures through short-term loans, as specified.
This bill wouldbegin delete instead allowend deletebegin insert additionally authorizeend insert the agency to use not more than $75,000,000 of the funds available pursuant to that provision to
finance the construction and development of housing developments, asbegin delete defined in a specified statute and for-sale structures.end deletebegin insert defined.end insert
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
begin insertSection 51504 of the end insertbegin insertHealth and Safety Codeend insertbegin insert, as
2amended by Chapter 82 of the Statutes of 2013, is amended to
3read:end insert
(a) The agency shall administer a downpayment
5assistance program that includes, but is not limited to, all of the
6following:
7(1) Downpayment assistance shall include, but not be limited
8to, a deferred-payment, low-interest, junior mortgage loan to reduce
9the principal and interest payments and make financing affordable
10to first-time low- and moderate-income home buyers.
11(2) (A) Except as provided in subparagraph (B) or (C), the
12amount of downpayment assistance shall not exceed 3 percent of
13the home sale price.
14(B) The amount of downpayment assistance for a new home
15within an infill opportunity zone, as defined in
Section 65088.1
16of the Government Code, a transit village development district, as
17defined in Section 65460.4 of the Government Code, or a
18transit-oriented development specific plan area, as defined in
19paragraph (6), shall not exceed 5 percent of the purchase price or
20the appraised value, whichever amount is less, of the new home.
21The borrower of the downpayment assistance shall provide the
22lender originating the loan with a certification from the local
23government agency administering the infill opportunity zone, the
24transit village development district, or the transit-oriented
25development specific plan area that states that the property involved
26in the loan transaction is within the boundaries of either the infill
27opportunity zone, the transit village development district, or the
28transit-oriented development specific plan area.
29(C) Notwithstanding paragraph (1), the agency may, but is not
30required to, provide downpayment assistance that does
not exceed
316 percent of the home sale price to first-time low-income home
32buyers who, as documented to the agency by a nonprofit
33organization that is certified and funded to provide home ownership
34counseling by a federally funded national nonprofit corporation,
35are purchasing a residence in a community revitalization area
36targeted by the nonprofit organization as a neighborhood in need
37of economic stimulation, renovation, and rehabilitation through
38efforts that include increased home ownership opportunities for
P3 1low-income families. The agency shall not use more than six
2million dollars ($6,000,000) in funds made available pursuant to
3Section 53533 for the purposes of this paragraph.
4(3) The amount of the downpayment assistance shall be secured
5by a deed of trust in a junior position to the primary financing
6provided. The term of the loan for the downpayment assistance
7shall not exceed the term of the primary loan.
8(4) (A) Except as provided in subparagraphs (B) and (C), the
9amount of the downpayment assistance shall be due and payable
10at the end of the term or upon sale of or refinancing of the home.
11The borrower may refinance the mortgages on the home provided
12that the principal and accrued interest on the junior mortgage loan
13securing the downpayment assistance are repaid in full. All
14repayments shall be made to the agency to be reallocated for the
15purposes of this chapter.
16(B) The agency may, in its discretion, permit the downpayment
17assistance loan to be subordinated to refinancing if it determines
18that the borrower has demonstrated hardship, subordination is
19required to avoid foreclosure, and the new loan meets the agency’s
20underwriting requirements. The agency may permit subordination
21on those terms and conditions as it determines are reasonable.
22(C) The amount of the downpayment assistance shall not be
23due and payable upon sale of the home if the first mortgage loan
24is insured by the Federal Housing Administration (FHA) or if the
25first mortgage loan is, or has been, transferred to the FHA, or if
26the requirement is otherwise contrary to regulations of the United
27States Department of Housing and Urban Development governing
28FHA insured first mortgage loans.
29(5) The agency may use up to 5 percent of the funds appropriated
30by the Legislature for purposes of this chapter to administer this
31program.
32(6) For purposes of this section, “transit-oriented development
33specific plan area” means a specific plan that meets the criteria set
34forth in Section 65451 of the Government Code, is centered around
35a rail or light-rail station, ferry terminal, bus hub, or bus transfer
36
station, and is intended to achieve a higher density use of land that
37facilitates use of the transit station.
38(b) In addition to the downpayment assistance program
39authorized by subdivision (a), the agency may, at its discretion,
40use not more than seventy-five million dollars ($75,000,000) of
P4 1the funds available pursuant to this chapter to finance the
2acquisition of land and the construction and development of
3begin delete for-sale residential structures,end deletebegin insert housing developments, as defined
4in Section 50073.5, and for-sale residential structuresend insert through
5short-term loans pursuant to its authority pursuant to Section 51100.
6However, the agency shall make downpayment assistance provided
7pursuant to paragraph (1), subparagraphs (A) and (B) of paragraph
8(2), and paragraphs (3)
to (5), inclusive, of subdivision (a) the
9priority use for these funds. A loan made pursuant to this section
10is not subject to Article 4 (commencing with Section 51175) of
11Chapter 5.
Section 51504 of the Health and Safety Code is
13amended to read:
(a) The agency shall administer a downpayment
15assistance program that includes, but is not limited to, all of the
16following:
17(1) Downpayment assistance shall include, but not be limited
18to, a deferred-payment, low-interest, junior mortgage loan to reduce
19the principal and interest payments and make financing affordable
20to first-time low- and moderate-income home buyers.
21(2) (A) Except as provided in subparagraph (B) or (C), the
22amount of downpayment assistance shall not exceed 3 percent of
23the home sale price.
24(B) The amount of downpayment assistance for a new home
25within an infill opportunity zone, as defined in
Section 65088.1
26of the Government Code, a transit village development district, as
27defined in Section 65460.4 of the Government Code, or a
28transit-oriented development specific plan area, as defined in
29paragraph (6), shall not exceed 5 percent of the purchase price or
30the appraised value, whichever amount is less, of the new home.
31The borrower of the downpayment assistance shall provide the
32lender originating the loan with a certification from the local
33government agency administering the infill opportunity zone, the
34transit village development district, or the transit-oriented
35development specific plan area that states that the property involved
36in the loan transaction is within the boundaries of either the infill
37opportunity zone, the transit village development district, or the
38transit-oriented development specific plan area.
39(C) Notwithstanding paragraph (1), the agency may, but is not
40required to, provide downpayment assistance that does
not exceed
P5 16 percent of the home sale price to first-time low-income home
2buyers who, as documented to the agency by a nonprofit
3organization that is certified and funded to provide home ownership
4counseling by a federally funded national nonprofit corporation,
5are purchasing a residence in a community revitalization area
6targeted by the nonprofit organization as a neighborhood in need
7of economic stimulation, renovation, and rehabilitation through
8efforts that include increased home ownership opportunities for
9low-income families. The agency shall not use more than six
10million dollars ($6,000,000) in funds made available pursuant to
11Section 53533 for the purposes of this paragraph.
12(3) The amount of the downpayment assistance shall be secured
13by a deed of trust in a junior position to the primary financing
14provided. The term of the loan for the downpayment assistance
15shall not exceed the term of the primary loan.
16(4) (A) Except as provided in subparagraph (B), the amount of
17the downpayment assistance shall be due and payable at the end
18of the term or upon sale of or refinancing of the home. The
19borrower may refinance the mortgages on the home provided that
20the principal and accrued interest on the junior mortgage loan
21securing the downpayment assistance are repaid in full. All
22repayments shall be made to the agency to be reallocated for the
23purposes of this chapter.
24(B) The agency may, in its discretion, permit the downpayment
25assistance loan to be subordinated to refinancing if it determines
26that the borrower has demonstrated hardship, subordination is
27required to avoid foreclosure, and the new loan meets the agency’s
28underwriting requirements. The agency may permit subordination
29on those terms and conditions as it determines are reasonable.
30(5) The agency may use up to 5 percent of the funds appropriated
31by the Legislature for purposes of this chapter to administer this
32program.
33(6) For purposes of this section, “transit-oriented development
34specific plan area” means a specific plan that meets the criteria set
35forth in Section 65451 of the Government Code, is centered around
36a rail or light-rail station, ferry terminal, bus hub, or bus transfer
37station, and is intended to achieve a higher density use of land that
38facilitates use of the transit station.
39(b) In addition to the downpayment assistance program
40authorized by subdivision (a), the agency may, at its discretion,
P6 1use not more than seventy-five million dollars ($75,000,000) of
2the funds available pursuant to this chapter to finance the
3acquisition of land and the construction and development of
4
housing developments, as defined in Section 50073.5, and
for-sale
5residential structures through short-term loans pursuant to its
6authority pursuant to Section 51100. However, the agency shall
7make downpayment assistance provided pursuant to paragraph
8(1), subparagraphs (A) and (B) of paragraph (2), and paragraphs
9(3) to (5), inclusive, of subdivision (a) the priority use for these
10funds. A loan made pursuant to this section is not subject to Article
114 (commencing with Section 51175) of Chapter 5.
O
97