BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 1516|
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THIRD READING
Bill No: AB 1516
Author: Committee on Housing and Community Development
AmendedAmended:6/22/15 in Senate
Vote: 21
SENATE TRANS. & HOUSING COMMITTEE: 11-0, 7/14/15
AYES: Beall, Cannella, Allen, Bates, Gaines, Galgiani, Leyva,
McGuire, Mendoza, Roth, Wieckowski
SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/17/15
AYES: Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen
ASSEMBLY FLOOR: 77-0, 5/7/15 (Consent) - See last page for
vote
SUBJECT: Housing
SOURCE: Author
DIGEST: This bill makes technical and non-controversial
changes to sections of law relating to housing.
ANALYSIS: This bill makes non-controversial changes to
sections of law relating to housing. Specifically, the bill
includes the following provisions. The proposer of each
provision is noted in brackets.
1)Technical change to Davis-Sterling Act. [Section 1] The
Davis-Stirling Act establishes the rules and regulations
governing the operation of a common interest development and
the respective rights and duties of a homeowners association
and its members. The bill makes a technical, non-substantive
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change by replacing "funding" with "funded." [Kerry Mazzoni,
Education Community for Homeowners]
2)Updating a cross-reference. [Section 2] The Housing
Accountability Act, among other things, prohibits a local
agency from disapproving a housing development project unless
the local agency makes specified written findings. This bill
updates cross-references and make technical changes to the
Act. [Rebecca Rabovsky, Assembly Committee on Housing and
Community Development]
3)Aligning state law with federal law. [Section 3] This bill
updates the statute to allow a Home Purchase Assistance (HPA)
downpayment assistance loan to be recorded in a junior lien
position. When the HPA statute was originally enacted, it was
common that a loan have two funding sources. The intent was
that this loan would be junior to senior debt, thus the
statutes currently state that this loan must be in second
position. In recent years, it has become increasingly common
for loans to have more than two funding sources. Other
downpayment assistance programs administered by California
Housing Finance Agency (CalHFA) allow them to be recorded in a
"junior" position, which gives the agency the flexibility it
needs to use these funds in conjunction with other downpayment
assistance programs. This bill provides that same flexibility
for the HPA program. This bill also updates the HPA statute
to ensure it meets all of the qualifications of federal laws
and regulations, allowing it to be used with a Federal Housing
Authority-insured loan product. [Rebecca Rabovsky, Assembly
Committee on Housing and Community Development]
Comments
Purpose of this bill. The purpose of omnibus bills is to
include technical and non-controversial changes to various
committee-related statutes into one bill. This allows the
Legislature to make multiple, minor changes to statutes in one
bill in a cost-effective manner. If there is no consensus on a
particular item, it cannot be included. There is no known
opposition to any item in this bill.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
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According to the Senate Appropriations Committee, this bill
could result in potential delays in downpayment assistance loan
repayments in future years to the extent those loans are assumed
by persons purchasing homes partially financed through an HPA
downpayment assistance loan. Currently, these loans must be
repaid when a home is refinanced or sold, but this bill allows
downpayment assistance loans to be assumed by a new owner or
repaid as part of the home purchase. This would only apply to
new HPA loans made by CalHFA. There are no fiscal impacts
related to other provisions of this bill.
SUPPORT: (Verified8/18/15)
None received
OPPOSITION: (Verified8/18/15)
None received
ASSEMBLY FLOOR: 77-0, 5/7/15
AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom,
Bonilla, Bonta, Brough, Brown, Burke, Calderon, Chang, Chau,
Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly,
Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina
Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez,
Gordon, Gray, Grove, Hadley, Harper, Holden, Irwin, Jones,
Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low,
Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin,
Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea,
Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Mark
Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams,
Wood, Atkins
NO VOTE RECORDED: Campos, Roger Hernández, Steinorth
Prepared by:Alison Dinmore / T. & H. / (916) 651-4121
8/19/15 20:39:19
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AB 1516
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