Amended in Assembly April 21, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 2280


Introduced by Assembly Member Ridley-Thomas

February 18, 2016


An act to add Section 50964 to the Health and Safety Code, relating to housing.

LEGISLATIVE COUNSEL’S DIGEST

AB 2280, as amended, Ridley-Thomas. California Housing Finance Agency: program eligibility requirements: changes.

Existing law creates the California Housing Finance Agency, which is administered by a board of directors and which is supervised on a day-to-day basis by an executive director. Existing law provides that the primary purpose of the agency is to meet the housing needs of persons and families of low to moderate income. Existing law authorizes the agency to make loans to housing sponsors for housing developments and to qualified mortgage lenders, among others.

This bill wouldbegin delete generally prohibitend deletebegin insert requireend insert thebegin delete agency from changingend deletebegin insert agency, within 5 business days of making a change toend insert the eligibility requirements for a housing or lending program that the agencybegin delete administrates without providingend deletebegin insert administrates, to provideend insert a lender or other party participating in the program notice of the changebegin delete at leastend deletebegin insert unless providing that notice withinend insert 5 businessbegin delete days prior to the change taking effect.end deletebegin insert days would impose an undue burden on the agency.end insert The bill wouldbegin delete requireend deletebegin insert authorizeend insert the notice to be provided by a programbegin delete bulletin and that the program bulletin be posted on the agency’s Internet Web site. The bill would permit the agency to make a change in eligibility requirements without satisfying the notification requirements upon a specified finding of the agency’s executive director or a vote of the board of directors. The bill would require the agency to require a lender or other party participating in these programs to have protocols that provide timely notification to representatives of the participants of changes to program eligibility requirements.end deletebegin insert bulletin.end insert

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

It is the intent of the Legislature in enacting this
2act to do all of the following:

3(a) Promote home ownership in California by establishing
4stability and predictability in the programs administered by the
5California Housing Finance Agency.

6(b) To improve the confidence of prospective home buyers in
7government programs designed to assist them in the complex
8process of buying a home and the ability of prospective home
9buyers to purchase a home.

10(c) To ensure that prospective home buyers who are in the
11process of purchasing a home through a program administered by
12the California Housing Finance Agency receive notice as soon as
13practically possible regarding changes in eligibility requirements,
14so they are best positioned to secure the financing that they need
15and deserve.

16

SEC. 2.  

Section 50964 is added to the Health and Safety Code,
17to read:

18

50964.  

begin delete(a)end deletebegin deleteend deleteThe agencybegin delete shall notend deletebegin insert shall, within five business
19days of making aend insert
changebegin insert toend insert the eligibility requirements for a
20housing or lending program that the agency administers, however
21that program may be characterized, including, but not limited to,
22the California Homebuyer’s Downpayment Assistance Program
23(Chapter 11 (commencing with Section 51500)) and the Mortgage
24Credit Certificate Program (Chapter 3.5 (commencing with Section
25begin delete 50172),end deletebegin insert 50172) ofend insert Part 1),begin delete without providingend deletebegin insert provideend insert a lender or
26other party participating in the program notice of the begin deletechange at
27least five business days prior to the change taking effect.end delete
begin insertchange
28unless providing that notice within five business days would impose
29an undue burden on the agency.end insert
The notificationbegin delete shallend deletebegin insert mayend insert be
P3    1provided by means of a program bulletin. begin deleteThe requirements of this
2subdivision may be excepted only as provided in this section.end delete

begin delete

3(b) Except as otherwise provided in subdivision (c), the agency
4shall post a program bulletin notifying of a change in eligibility
5in a housing or lending program that it administers on its Internet
6Web site at the earliest practicable time.

7(c) The agency may change eligibility requirements without the
8five-business-day notification period if the executive director
9makes a determination that both of the following are true:

10(1) The change in eligibility is required by federal law.

11(2) The agency will lose federal funding if the eligibility
12requirements are subject to the five-business-day notification
13period.

14(d) Notwithstanding subdivision (a) or (c), the board of directors
15may change eligibility requirements by majority vote without
16regard to the five-business-day notification period.

17(e) The agency shall require, as a condition of participating in
18a housing or lending program that the agency administers, that a
19lender or other participating party has protocols that provide for
20timely notification to its representatives of changes to program
21eligibility requirements.

end delete


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