BILL NUMBER: AB 304	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 22, 2003

INTRODUCED BY   Assembly Member Mullin

                        FEBRUARY 6, 2003

   An act to  amend Section 51504 of   add
Section 53534 to  the Health and Safety Code, relating to
housing.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 304, as amended, Mullin.  Housing: downpayment assistance.
   Under existing law, the California Housing Finance Agency
administers a downpayment assistance program under which the amount
of downpayment assistance may not exceed 3% of the home sales price.
 The Housing and Emergency Shelter Trust Fund Act of 2002, also
allocates certain housing bond revenues for downpayment assistance to
low-income first-time homebuyers who, as documented to the agency by
a nonprofit organization certified and funded to provide
homeownership counseling, are purchasing a residence in a community
revitalization area targeted by the nonprofit organization and have
received homeownership counseling from the nonprofit organization.

   This bill would  increase that amount to 6%  
limit that downpayment assistance to those low-income first-time
homebuyers to 6% of the home sales price  .
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  no.


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

  
  SECTION 1.  Section 51504 of the Health and Safety Code is
 
  SECTION 1.  Section 53534 is added to the Health and Safety Code,
to read:
   53534.  The downpayment assistance provided pursuant to
subparagraph (C) of paragraph (7) of subdivision (a) of Section 53533
shall not exceed 6 percent of the home sales price.  
amended to read:
   51504.  (a) The agency shall administer a downpayment assistance
program that includes, but is not limited to, all of the following:
   (b) Downpayment assistance shall include, but not be limited to, a
deferred-payment, low-interest, junior mortgage loan to reduce the
principal and interest payments and make financing affordable to
first-time low- and moderate-income homebuyers.
   (c) The amount of downpayment assistance shall not exceed 6
percent of the home sales price.
   (d) The amount of downpayment assistance shall be secured by a
deed of trust in a junior position to the primary financing provided.
  The term of the loan for the downpayment assistance shall not
exceed the term of the primary loan.
   (e) The amount of the downpayment assistance shall be due and
payable at the end of the term or upon sale of or refinancing of the
home.  The borrower may refinance the mortgages on the home provided
the principal and accrued interest on the junior mortgage loan
securing the downpayment assistance are repaid in full.  All
repayments shall be made to the agency to be reallocated for the
purposes of this chapter.
   (f) The agency may use up to 5 percent of the funds appropriated
by the Legislature for purposes of this chapter to administer this
program.