BILL NUMBER: AB 1404	CHAPTERED  08/30/99

	CHAPTER   264
	FILED WITH SECRETARY OF STATE   AUGUST 30, 1999
	APPROVED BY GOVERNOR   AUGUST 30, 1999
	PASSED THE SENATE   AUGUST 19, 1999
	PASSED THE ASSEMBLY   MAY 13, 1999

INTRODUCED BY   Assembly Member Dutra

                        FEBRUARY 26, 1999

   An act to amend Section 51350 of the Health and Safety Code,
relating to housing, and making an appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1404, Dutra.  California Housing Finance Agency:  bonds.
   Existing law sets forth various powers and duties of the
California Housing Finance Agency in conjunction with the financing
of housing.  Under existing law, the agency is authorized to issue
revenue bonds in an amount not exceeding $6,750,000,000 outstanding
at any time, exclusive of indebtedness incurred to refund or renew
bonds previously issued by the agency, the proceeds of which are used
to finance housing developments and other residential structures.
   The bill would make an appropriation by increasing by
$2,200,000,000 the authorization of bonds to be issued by the agency,
which under existing provisions of law are required to be deposited
in the continuously appropriated California Housing Finance Fund.
   Appropriation:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 51350 of the Health and Safety Code is amended
to read:
   51350.  (a) The agency may, from time to time, issue its bonds in
the principal amount which the agency determines necessary to provide
sufficient funds for financing housing developments and other
residential structures and for the payment of interest on bonds of
the agency, establishment of reserves to secure the bonds, and other
expenditures of the agency incident to, and necessary or convenient
to, issuance of the bonds.
   (b) (1) Sale of the bonds of the agency shall be coordinated by
the Treasurer.  To obtain a date for the sale of bonds, the agency
shall inform the Treasurer of the amount of the proposed issue.  Upon
that notification, the Treasurer shall provide three 10-day periods,
within the 90 days next following, when the bonds can be sold.  The
agency may choose any date during the suggested periods or any other
date to which the agency and the Treasurer have mutually agreed.  The
Treasurer shall sell the bonds on the date chosen according to terms
approved by the agency.
   (2) The agency shall exercise its powers with due regard for the
right of the holders of bonds of the agency at any time outstanding,
and nothing in, or done pursuant to, this section shall in any way
limit, restrict, or alter the obligation or powers of the agency or
any member, officer, or representative of the agency or the Treasurer
to carry out and perform in every detail each and every covenant,
agreement, or contract at any time made or entered into on behalf of
the agency with respect to its bonds or its benefits, or the security
of the holders of the bonds.
   (c) Except as provided in subdivisions (d), (e), (f), (g), and
(h), the aggregate principal amount of bonds which may be outstanding
at any time pursuant to this part shall not exceed seven hundred
fifty million dollars ($750,000,000), exclusive of the principal
indebtedness of bonds issued to refund or renew previously issued
bonds of the agency, to the extent of the outstanding principal
indebtedness of the previously issued bonds and any redemption
premium thereon and any interest accrued or to accrue to the date of
redemption of the bonds, during the period in which both the
previously issued bonds and the refunding or renewal bonds are
outstanding.
   (d) Effective January 1, 1980, the aggregate principal amount of
bonds which may be outstanding at any time pursuant to this part
shall be increased by seven hundred fifty million dollars
($750,000,000), exclusive of (1) bonds previously authorized pursuant
to subdivision (c), and (2) the principal indebtedness of bonds
issued to refund or renew bonds of the agency previously issued under
the authority of this subdivision, but only to the extent of the
outstanding principal indebtedness of the previously issued bonds and
any redemption premium thereon and any interest accrued or to accrue
to the date of redemption of the bonds, during the period in which
both the previously issued bonds and the refunding or renewal bonds
are outstanding.
   (e) Effective January 1, 1983, the aggregate principal amount of
bonds which may be outstanding at any time pursuant to this part
shall be additionally increased by three hundred fifty million
dollars ($350,000,000) exclusive of (1) bonds previously authorized
pursuant to subdivision (c) or (d), and (2) the principal
indebtedness of bonds issued to refund or renew bonds of the agency
previously issued under the authority of this subdivision, but only
to the extent of the outstanding principal indebtedness of the
previously issued bonds and any redemption premium thereon and any
interest accrued or to accrue to the date of the redemption of the
bonds, during the period in which both the previously issued bonds
and the refunding or renewal bonds are outstanding.
   (f) Effective January 1, 1984, the aggregate principal amount of
bonds which may be outstanding at any time pursuant to this part
shall be additionally increased by five hundred million dollars
($500,000,000), exclusive of (1) bonds previously authorized pursuant
to subdivision (c), (d), or (e), and (2) the principal indebtedness
of bonds issued to refund or renew bonds of the agency previously
issued under the authority of this subdivision, but only to the
extent of the outstanding principal indebtedness of the previously
issued bonds and any redemption premium thereon and any interest
accrued or to accrue to the date of the redemption of the bonds,
during the period in which both the previously issued bonds and the
refunding or renewal bonds are outstanding.
   (g) On the effective date of the amendments to this section
enacted by the Statutes of 1985, the aggregate principal amount of
bonds which may be outstanding at any time pursuant to this part
shall be additionally increased by six hundred million dollars
($600,000,000), exclusive of (1) bonds previously authorized pursuant
to subdivision (c), (d), (e), or (f), and (2) the principal
indebtedness of bonds issued to refund or renew bonds of the agency
previously issued under the authority of this subdivision, but only
to the extent of the outstanding principal indebtedness of the
previously issued bonds and any redemption premium thereon and any
interest accrued or to accrue to the date of the redemption of the
bonds, during the period in which both the previously issued bonds
and the refunding or renewal bonds are outstanding.
   (h) On the effective date of the amendments to this section
enacted by the Statutes of 1985, the aggregate principal amount of
bonds which may be outstanding at any time pursuant to this part
shall be additionally increased by six hundred million dollars
($600,000,000), exclusive of (1) bonds previously authorized pursuant
to subdivision (c), (d), (e), (f), or (g), and (2) the principal
indebtedness of bonds issued to refund or renew bonds of the agency
previously issued under the authority of this subdivision, but only
to the extent of the outstanding principal indebtedness of the
previously issued bonds and any redemption premium thereon and any
interest accrued or to accrue to the date of the redemption of the
bonds, during the period in which both the previously issued bonds
and the refunding or renewal bonds are outstanding.
   (i) Effective September 4, 1990, the aggregate principal amount of
bonds which may be outstanding at any one time pursuant to this part
shall be additionally increased by nine hundred million dollars
($900,000,000), exclusive of the following:  (1) bonds previously
authorized pursuant to subdivision (c), (d), (e), (f), (g), or (h),
and (2) the principal indebtedness of bonds issued to refund or renew
bonds of the agency previously issued under the authority of this
subdivision, but only to the extent of the outstanding principal
indebtedness of the previously issued bonds and any redemption
premium thereon and any interest accrued or to accrue to the date of
the redemption of the bonds, during the period in which both the
previously issued bonds and the refunding or renewal bonds are
outstanding.
   (j) On the effective date of the amendments to this section which
add this subdivision, the aggregate principal amount of bonds which
may be outstanding at any one time pursuant to this part shall be
additionally increased by nine hundred million dollars
($900,000,000), exclusive of the following:  (1) bonds previously
authorized pursuant to subdivision (c), (d), (e), (f), (g), (h), or
(i), and (2) the principal indebtedness of bonds issued to refund or
renew bonds of the agency previously issued under the authority of
this subdivision, but only to the extent of the outstanding principal
indebtedness of the previously issued bonds and any redemption
premium thereon and any interest accrued or to accrue to the date of
the redemption of the bonds, during the period in which both the
previously issued bonds and the refunding or renewal bonds are
outstanding.
   (k) Effective January 1, 1998, the aggregate principal amount of
bonds which may be outstanding at any one time pursuant to this part
shall be additionally increased by one billion four hundred million
dollars ($1,400,000,000), exclusive of:  (1) bonds previously
authorized pursuant to subdivision (c), (d), (e), (f), (g), (h), (i),
or (j), and (2) the principal indebtedness of bonds issued to refund
or renew bonds of the agency previously issued under the authority
of this subdivision, but only to the extent of the outstanding
principal indebtedness of the previously issued bonds and any
redemption premium thereon and any interest accrued or to accrue to
the date of the redemption of the bonds, during the period in which
both the previously issued bonds and the refunding or renewal bonds
are outstanding.
   (l) Effective January 1, 2000, the aggregate principal amount of
bonds that may be outstanding at any one time pursuant to this part
shall be additionally increased by two billion two hundred million
dollars ($2,200,000,000), exclusive of:  (1) bonds previously
authorized pursuant to subdivisions (c) to (k), inclusive, and (2)
the principal indebtedness of bonds issued to refund or renew bonds
of the agency previously issued under the authority of this
subdivision, but only to the extent of the outstanding principal
indebtedness of the previously issued bonds and any redemption
premium thereon and any interest accrued or to accrue to the date of
the redemption of the bonds, during the period in which both the
previously issued bonds and the refunding or renewal bonds are
outstanding.