AB 984, as amended, Chau. The California Housing Finance Agency.
Existing law provides that there is the California Housing Finance Agency in the Department of Housing and Community Development administered by an 11-member board of directors that includes various state officers and 6 members appointed by the Governor.
This bill would add the Secretary of Veterans Affairs to the board. The bill would also increase the number of members appointed by the Governor to 7 and require that at least one member appointed by the Governor have specific knowledge of bonds and related financial instruments, interest rate swaps, and risk management.
Existing law, the California Homebuyer’s Assistance Program, requires the agency to administer a downpayment assistance program, as specified.end delete
This bill would make a technical, nonsubstantive change to those provisions.end delete
begin deletemajority end delete.
Fiscal committee: yes.
State-mandated local program: no.
The people of the State of California do enact as follows:
Section 50901 of the Health and Safety Code, as
2amended by Section 21 of Chapter 147 of the Statutes of 2012, is
3amended to read:
The agency shall be administered by a board of directors
5consisting of 13 voting members, including a chairperson selected
6by the Governor from among his or her appointees. The
begin delete Treasurer,end delete
7 the Secretary of Business, Consumer Services, and
begin delete Housing,end delete the Director of Housing and Community
begin delete Development,end delete
and the Secretary of Veterans Affairs,
10or their designees, shall be members, in addition to seven members
11appointed by the Governor, one member appointed by the Speaker
12of the Assembly, and one member appointed by the Senate
13Committee on Rules. The Director of Finance, the Director of
14Planning and Research, and the executive director of the agency
15shall serve as nonvoting ex officio members of the board.
Section 50902 of the Health and Safety Code is
17amended to read:
(a) Appointed members of the board shall be able
19persons broadly reflective of the economic, cultural, and social
20diversity of the state, including ethnic minorities and women.
21However, it is not intended that formulas or specific ratios be
22applied in order to achieve that diversity.
23(b) The Governor shall select four of his or her seven appointees
24from among the following categories: (1) an elected official of a
25city or county engaged in the planning or implementation of a
26housing, housing-assistance, or housing-rehabilitation program;
27(2) a person experienced in residential real estate in the savings
28and loan, mortgage banking, or commercial banking industry; (3)
29a person experienced as a builder of residential housing; (4) a
30person experienced in organized labor in the residential
31construction industry; (5) a person experienced in the management
32of rental or cooperative housing occupied by lower income
33households; (6) a person experienced in manufactured housing
34finance and development; and (7) a person representing the public.
35Not more than one person from each category may serve on the
36board at any one time, except that two members may be appointed
37by the Governor to represent the public.
P4 1(c) The Governor shall also appoint two members who are
2residents of rental or cooperative housing financed by the agency
3or who are persons experienced in counseling, assisting, or
5(d) At least
one of the members appointed by the Governor shall
6be a resident of a rural or nonmetropolitan area.
7(e) At least one of the members appointed by the Governor shall
8have specific knowledge of bonds and related financial instruments,
9interest rate swaps, and risk management.
10(f) The Senate Committee on Rules and the Speaker of the
11Assembly shall each appoint a person representing the public.
12The term of members of the board shall be six years. Any person
13appointed to fill a vacancy on the board shall serve only for the
14remainder of the unexpired term. Members of the board shall,
15subject to continued qualification, be eligible for reappointment.
16If a member of the board ceases to meet the qualifications specified
17in this section, the membership of that person on the board shall
Section 51502 of the Health and Safety Code is
20amended to read:
The purpose of the California Homebuyer’s
22Downpayment Assistance Program is to assist first-time low- and
23moderate-income homebuyers using existing mortgage financing.
Except as provided in this article, the agency shall not
40make construction loans or mortgage loans for the purpose
P5 1of financing owner-occupied residential structures unless
begin delete suchend delete
2 loans are made through a qualified mortgage lender.
(a) The agency shall administer a downpayment
6assistance program that includes, but is not limited to, all of the
8(1) Downpayment assistance shall include, but not be limited
9to, a deferred-payment, low-interest, junior mortgage loan to reduce
10the principal and interest payments and make financing affordable
11to first-time low- and moderate-income home buyers.
12(2) (A) Except as provided in subparagraph (B) or (C), the
13amount of downpayment assistance shall not exceed 3 percent of
14the home sale price.
15(B) The amount of downpayment assistance for a new home
16within an infill opportunity zone, as defined in Section 65088.1
17of the Government Code, a transit village development district, as
18defined in Section 65460.4 of the Government Code, or a
19transit-oriented development specific plan area, as defined in
20paragraph (6), shall not exceed 5 percent of the purchase price or
21the appraised value, whichever amount is less, of the new home.
22The borrower of the downpayment assistance shall provide the
23lender originating the loan with a certification from the local
24government agency administering the infill opportunity zone, the
25transit village development district, or the transit-oriented
26development specific plan area that states that the property involved
27in the loan transaction is within the boundaries of either the infill
28opportunity zone, the transit village development district, or the
29transit-oriented development specific plan area.
30(C) Notwithstanding paragraph (1), the agency may, but is not
31required to, provide downpayment assistance that does not exceed
326 percent of the home sale price to first-time low-income home
33buyers who, as documented to the agency by a nonprofit
34organization that is certified and funded to provide home ownership
35counseling by a federally funded national nonprofit corporation,
36are purchasing a residence in a community revitalization area
37targeted by the nonprofit organization as a neighborhood in need
38of economic stimulation, renovation, and rehabilitation through
39efforts that include increased home ownership opportunities for
40low-income families. The agency shall not use more than six
P6 1million dollars ($6,000,000) in funds made available pursuant to
2Section 53533 for the purposes of this paragraph.
3(3) The amount of the downpayment assistance shall be secured
4by a deed of trust in a junior position to the primary financing
5provided. The term of the loan for the downpayment assistance
6shall not exceed the term of the primary loan.
7(4) (A) Except as provided in
begin delete subparagraph (B),end delete the amount of the downpayment assistance shall be
9due and payable at the end of the term or upon sale of or
10refinancing of the home. The borrower may refinance the
11mortgages on the home provided that the principal and accrued
12interest on the junior mortgage loan securing the downpayment
13assistance are repaid in full. All repayments shall be made to the
14agency to be reallocated for the purposes of this chapter.
15(B) The agency may, in its discretion, permit the downpayment
16assistance loan to be subordinated to refinancing if it determines
17that the borrower has demonstrated hardship, subordination is
18required to avoid foreclosure, and the new loan meets the agency’s
19underwriting requirements. The agency may permit subordination
20on those terms and conditions as it determines are reasonable.
28(5) The agency may use up to 5 percent of the funds appropriated
29by the Legislature for purposes of this chapter to administer this
31(6) For purposes of this section, “transit-oriented development
32specific plan area” means a specific plan that meets the criteria set
33forth in Section 65451 of the Government Code, is centered around
34a rail or light-rail station, ferry terminal, bus hub, or bus transfer
35station, and is intended to achieve a higher density use of land that
36facilitates use of the transit station.
37(b) In addition to the downpayment assistance program
38authorized by subdivision (a), the agency may, at its discretion,
39use not more than seventy-five million dollars ($75,000,000) of
40the funds available pursuant to this chapter to finance the
P7 1acquisition of land and the construction and development of
2for-sale residential structures, through short-term loans pursuant
3to its authority pursuant to Section 51100. However, the agency
4shall make downpayment assistance provided pursuant to paragraph
5(1), subparagraphs (A) and (B) of paragraph (2), and paragraphs
6(3) to (5), inclusive, of subdivision (a) the priority use for these
7funds. A loan made pursuant to this section is not subject to Article
84 (commencing with Section 51175) of Chapter 5.