AB 2388, as introduced, Gipson. Local government: housing: ownership.
Existing law declares the intent of the Legislature to preserve, upgrade, and expand the supply of housing to persons and families of low or moderate income, through the sale of specified surplus residential property owned by public agencies. Existing law establishes priorities and procedures that any state agency disposing of that surplus residential property is required to follow.
This bill, on or before January 1, 2018, would require every local government agency, as defined, to adopt a mortgage program that, among other things, allocates 10% of all single-family residences that the local government agency owns and leases to become eligible for purchase by tenants presently occupying the single-family residence. The bill would require each local government agency to adopt regulations for the administration of the program that include, among other things, eligibility requirements that limit the program to use by persons with extremely low income households, very low income households, lower income households, or persons and families of low or moderate income. By imposing new duties on local government agencies, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
Article 13 (commencing with Section 50295) is
2added to Chapter 1 of Part 1 of Division 1 of Title 5 of the 3Government Code, to read:
4
(a) As used in this section the following terms have
8the following meanings:
9(1) “Local government agency” means a city or county,
10including a charter city, charter county, or charter city and county,
11or any agency, authority, or department thereof.
12(2) “Purchaser” means the tenant of a single family residence
13owned by a local government agency that utilizes the program to
14purchase a single-family residence.
15(3) “Single-family residence” means a real property
16improvement used, or intended to be used, as a dwelling unit for
17one family.
18(b) On or before
January 1, 2018, each local government agency
19that owns and leases any single-family residence shall create a
20mortgage program that meets the following requirements:
21(1) Allocates 10 percent of all single family residences that the
22local government agency owns and leases to become eligible for
23purchase by tenants of the single family residence.
24(2) Provides a mortgage to eligible tenants of single family
25residences that allows those tenants to purchase the single-family
26residence they are presently leasing.
27(3) Offers a required informational session for interested tenants
28to attend prior to purchase of a single-family residence through
P3 1the program. The session shall educate potential purchasers on
2their legal rights and obligations in purchasing a property through
3the program.
4(4) Requires a valuation by the county assessor of any property
5being purchased through the program.
6(5) Offers a wait list for persons interested in purchasing a
7property through the program if the local government agency has
8already met the 10-percent threshold with properties in the process
9of being purchased.
10(c) The local government agency shall adopt regulations for the
11administration of the mortgage program that shall include, but are
12not limited to, the following:
13(1) Mortgage eligibility requirements that are limited to tenants
14that qualify as extremely low income households, as defined by
15Section 50106 of the Health and Safety Code, very low income
16households, as defined by Section 50105 of the Health and Safety
17Code, lower income households, as
defined by Section 50079.5
18of the Health and Safety Code, or persons and families of low or
19moderate income.
20(2) (A) The maximum length of the mortgage, which shall not
21exceed 30 years. Except as provided in subparagraph (B), the
22monthly payment paid by a purchaser, including principal, interest,
23insurance, property taxes and other property-related assessments
24and taxes, and any required mortgage insurance, amortized over
25the term of the mortgage, shall not exceed the amount the purchaser
26previously paid as a tenant for occupancy in the property.
27(B) A local government agency may reduce the payment
28requirements for purchasers with extremely low income, as
29necessary.
30(3) The local government agency may decline to offer use of
31the program to a prospective purchaser if it determines that the
32
purchaser would not be able to consistently make on-time
33payments. A prospective purchaser shall be permitted to reapply
34at a later date if the local government agency declines to offer the
35prospective purchaser use of the program.
If the Commission on State Mandates determines that
37this act contains costs mandated by the state, reimbursement to
38local agencies and school districts for those costs shall be made
P4 1pursuant to Part 7 (commencing with Section 17500) of Division
24 of Title 2 of the Government Code.
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