BILL ANALYSIS Ó
AB 1516
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CONCURRENCE IN SENATE AMENDMENTS
AB
1516 (Committee on Housing and Community Development)
As Amended June 22, 2015
Majority vote
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|ASSEMBLY: | 77-0 |(May 7, 2015) |SENATE: | 40-0 |(August 31, |
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Original Committee Reference: H. & C.D.
SUMMARY: Makes technical and non-controversial changes to
various sections of the law dealing with housing. Specifically,
this bill:
1)Updates cross-references and makes technical changes to the
Housing Accountability Act.
2)Makes a technical, non-substantive change to the
Davis-Stirling Act.
3)Aligns state law with federal law by allowing a Home Purchase
Assistance (HPA) downpayment assistance loan to be recorded in
a junior lien position, and updates the HPA statute to ensure
AB 1516
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it meets all of the qualifications of federal laws and
regulations, allowing it to be used with a Federal Housing
Authority-insured loan product.
The Senate amendments:
1)Make a technical, non-substantive change to the Davis-Stirling
Act.
2)Align state law with federal law by allowing a Home Purchase
Assistance (HPA) downpayment assistance loan to be recorded in
a junior lien position, and update 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.
FISCAL EFFECT: 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 California
Housing Finance Agency (CalHFA). There are no fiscal impacts
related to other provisions of this bill.
COMMENTS: The Assembly Housing and Community Development
Committee is authoring this year's housing omnibus bill as a
cost-effective way of making a number of minor,
non-controversial changes to statute at one time. There is no
known opposition to any of the items in this bill. If issues
arise that cannot be resolved, the provision of concern will be
deleted from this bill.
Analysis Prepared by:
Rebecca Rabovsky / H. & C.D. / (916) 319-2085
AB 1516
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FN:
0001601