BILL NUMBER: AB 304 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 27, 2003
AMENDED IN SENATE JULY 21, 2003
AMENDED IN SENATE JUNE 24, 2003
AMENDED IN ASSEMBLY APRIL 22, 2003
INTRODUCED BY Assembly Member Mullin
(Principal coauthor: Senator Torlakson)
FEBRUARY 6, 2003
An act to amend Sections 51505 and 53533 of
51451.5, 51505, 51615, 51628, 51642, 51643.5, 51648, 51650,
51651, 51652, 51654, 51670, and 53533 of, and to repeal Section 51646
of, the Health and Safety Code, relating to housing and
making an appropriation therefor .
LEGISLATIVE COUNSEL'S DIGEST
AB 304, as amended, Mullin. Housing: downpayment assistance
and guaranty insurance .
Under
(1) 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 teachers and school personnel under programs operated
by the agency, with assistance limited to $7,500 or 3% of the
purchase price, and 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 , among other things, authorize the
agency, as specified, to establish higher assistance limits for that
downpayment assistance to teachers and school personnel. The bill
would limit, to specified neighborhoods identified by nonprofit
organizations, the downpayment assistance under that act for
low-income first-time homebuyers and require 50% of the funds
available for that purpose under the act to be available for
downpayment assistance not to exceed 6% of the home sales price for a
specified period. The bill would also make conforming changes.
(2) Existing law establishes the California Housing Loan Insurance
Fund, which is continuously appropriated to the agency for the
purpose of insuring loans for single family and multifamily
residential housing and insuring bonds issued by governmental
agencies for purposes of financing housing affordable to persons and
families of low or moderate income. Premiums received from the
insurance is deposited in the fund.
This bill would expand the categories of persons who may be
qualified for loan insurance, as specified, until January 1, 2011,
provide that the insured loans may be secured by deeds of trust, and
authorize insurance for bonds issued by other types of issuers
approved by the board of directors of the agency, thereby making an
appropriation by expanding the class of persons, types of loans, and
bond issuers eligible for insurance and payments under the fund. The
bill would also make technical, clarifying changes.
(3) This bill would incorporate additional changes in Section
53533 of the Health and Safety Code proposed by this bill and AB 1475
that would become operative only if either both bills are chaptered
and become effective on or before January 1, 2004, and this bill is
chaptered last.
Vote: majority. Appropriation: no yes
. Fiscal committee: yes. State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 51451.5 of the Health and Safety Code, as
added by Section 2 of Chapter 26 of the Statutes of 2002, is amended
to read:
51451.5. The Homebuyer Down Payment Assistance Program of 2002 is
hereby established, to provide assistance in the amount of the
applicable school facility fee on affordable housing developments.
The Homebuyer Down Payment Assistance Program of 2002 shall, with
funds provided by the Housing and Emergency Shelter Trust Fund Act of
2002 (Part 11 (commencing with Section 53500)), provide the
following assistance:
(a) Downpayment assistance to the purchaser of any newly
constructed residential structure in a development project in an
economically distressed area in the amount of school facility fees
paid pursuant to Section 65995.5 or 65995.7 of the Government Code,
less the amount that would be required pursuant to subdivision (b) of
Section 65995 of the Government Code, notwithstanding Sections
65995.5 and 65995.7 of the Government Code, if all of the following
conditions are met:
(1) The development project is located in a county with an
unemployment rate that equals or exceeds 125 percent of the state
unemployment rate.
(2) Five hundred or more residential structures have been
constructed in the county during 2001.
(3) A building permit for an eligible residential structure in the
development project is issued by the local agency on or after
January 1, 2002.
(4) The eligible residential structure is to be owner occupied for
at least five years. If a structure is owner occupied for fewer
than five years, the recipient of the assistance shall repay the
School Facilities Fee Assistance Fund the amount of the assistance,
on a prorated basis.
(5) The sales price of the eligible residential structure does not
exceed 175 percent of the median sales price of residential
structures in the county during the average of the previous five
years. However, if the five-year average exceeds the
Governmental-Sponsored Enterprises conforming loan limit, the sales
price in that county shall not exceed 100 percent of the median sales
price of residential structures in the county during the average of
the previous five years.
(b) Downpayment assistance to the purchaser of any newly
constructed residential structure in a development project in the
aggregate amount of school facility fees paid pursuant to one, all,
or any combination of subdivision (b) of Section 65995, Section
65995.5, or Section 65995.7 of the Government Code for the eligible
residential structure if all of the following conditions are met:
(1) The assistance is provided to a qualified first-time homebuyer
pursuant to Section 50068.5.
(2) The qualified first-time homebuyer does not exceed the lower
or moderate-income requirements in Section 50093.
(3) A building permit for an eligible residential structure in the
development project is issued by the local agency on or after
January 1, 2002.
(4) The eligible residential structure is to be owner occupied for
at least five years. If a structure is owner occupied for fewer
than five years, the recipient of the assistance shall repay the
School Facilities Fee Assistance Fund the amount of the assistance,
on a prorated basis.
SEC. 2. Section 51451.5 of the Health and Safety Code, as amended
by Section 18 of Chapter 935 of the Statutes of 2002, is amended to
read:
51451.5. The Homebuyer Down Payment Assistance Program of 2002 is
hereby established, to provide assistance in the amount of the
applicable school facility fee on affordable housing. The Homebuyer
Down Payment Assistance Program of 2002 shall, with funds provided by
the Kindergarten-University Public Education Facilities Bond Acts of
2002 and 2004 (Part 68.1 (commencing with Section 100600) of the
Education Code; and Part 68.2 (commencing with Section 100800) of the
Education Code), provide the following assistance:
(a) Downpayment assistance to the purchaser of any newly
constructed residential structure in a development project in an
economically distressed area in the amount of school facility fees
paid pursuant to Section 65995.5 or 65995.7 of the Government Code,
less the amount that would be required pursuant to subdivision (b) of
Section 65995 of the Government Code, notwithstanding Sections
65995.5 and 65995.7 of the Government Code, if all of the following
conditions are met:
(1) The development project is located in a county with an
unemployment rate that equals or exceeds 125 percent of the state
unemployment rate.
(2) Five hundred or more residential structures have been
constructed in the county during 2001.
(3) A building permit for an eligible residential structure in the
project is issued by the local agency on or after January 1, 2002.
(4) The eligible residential structure is to be owner occupied for
at least five years. If a structure is owner occupied for fewer
than five years, the recipient of the assistance shall repay the
School Facilities Fee Assistance Fund the amount of the assistance,
on a prorated basis.
(5) The sales price of the eligible residential structure does not
exceed 175 percent of the median sales price of residential
structures in the county during the average of the previous five
years. However, if the five-year average exceeds the
Governmental-Sponsored Enterprises conforming loan limit, the sales
price in that county shall not exceed 100 percent of the median sales
price of residential structures in the county during the average of
the previous five years.
(b) Downpayment assistance to the purchaser of any newly
constructed residential structure in a development project in the
aggregate amount of school facility fees paid pursuant to one, all,
or any combination of subdivision (b) of Section 65995, Section
65995.5, or Section 65995.7 of the Government Code for the eligible
residential structure if all of the following conditions are met:
(1) The assistance is provided to a qualified first-time home
buyer pursuant to Section 50068.5.
(2) The qualified first-time home buyer does not exceed the lower
or moderate-income requirements in Section 50093.
(3) A building permit for an eligible residential structure in the
project is issued by the local agency on or after January 1, 2002.
(4) The eligible residential structure is to be owner occupied for
at least five years. If a structure is owner occupied for fewer
than five years, the recipient of the assistance shall repay the
School Facilities Fee Assistance Fund the amount of the assistance,
on a prorated basis.
SEC. 3. Section 51505 of the Health and Safety Code is
amended to read:
51505. (a) In addition to the downpayment assistance program
authorized by Section 51504, and notwithstanding any provision of
Section 51504 to the contrary, the agency shall provide downpayment
assistance from the funds set aside pursuant to subparagraph (D) of
paragraph (7) of subdivision (a) of Section 53533 for the purposes of
the portion of the Extra Credit Teacher Home Purchase Program
provided for in subdivision (g) of Section 8869.84 of the Government
Code and any other school personnel home ownership assistance
programs as set forth by the California Debt Limit Allocation
Committee, as operated by the agency. Notwithstanding the foregoing,
the agency may, but is not required to, provide downpayment
assistance pursuant to this section to any local issuer participating
in the Extra Credit Teacher Home Purchase Program and any other
school personnel home ownership assistance programs as set forth by
the California Debt Limit Allocation Committee.
(b) Downpayment assistance for purposes of this section shall be
subject to, and shall meet the requirements of, the Extra Credit
Teacher Home Purchase Program and any other school personnel home
ownership programs as set forth by the California Debt Limit
Allocation Committee, and shall include, but not be limited to,
deferred payment, low interest rate loans where payment of principal
and interest is deferred until the time that the home is sold or
refinanced. This downpayment assistance shall meet the requirements
of subdivisions (d) and (e) of Section 51504.
(c) Loans made pursuant to this section may include a provision
whereby interest, principal, or both, of the loan is forgiven upon
conditions to be established by the agency, or any other provision
designed to carry out the purposes of the Extra Credit Teacher Home
Purchase Program and any other school personnel home ownership
programs as set forth by the California Debt Limit Allocation
Committee.
(d) Downpayment assistance pursuant to this section shall not
exceed the greater of seven thousand five hundred dollars ($7,500) or
3 percent of the home sales price. However, the agency may, with
the concurrence of the California Debt Limit Allocation Committee,
establish higher assistance limits where necessary to ensure
sufficient assistance to allow program participation in high cost
areas.
SEC. 2. Section 53533 of the Health and Safety Code is amended to
read:
53533. (a) Money deposited in the fund from the sale of bonds
pursuant to this part shall be allocated for expenditure in
accordance with the following schedule:
(1) Nine hundred ten million dollars ($910,000,000) shall be
transferred to the Housing Rehabilitation Loan Fund to be expended
for the Multifamily Housing Program authorized by Chapter 6.7
(commencing with Section 50675) of Part 2, except for the following:
(A) Fifty million dollars ($50,000,000) shall be transferred to
the Preservation Opportunity Fund and, notwithstanding Section 13340
of the Government Code, is continuously appropriated without regard
to fiscal years for the preservation of at-risk housing pursuant to
Chapter 5 (commencing with Section 50600) of Part 2.
(B) Twenty million dollars ($20,000,000) shall be used for
nonresidential space for supportive services, including, but not
limited to, job training, health services, and child care within, or
immediately proximate to, projects to be funded under the Multifamily
Housing Program. This funding shall be in addition to any
applicable per-unit or project loan limits and may be in the form of
a grant. Service providers shall ensure that services are available
to project residents on a priority basis over the general public.
(C) Twenty-five million dollars ($25,000,000) shall be used for
matching grants to local housing trust funds pursuant to Section
50843.
(D) Fifteen million dollars ($15,000,000) shall be used for
student housing through the Multifamily Housing Program, subject to
the following provisions:
(i) The department shall give first priority for projects on land
owned by a University of California or California State University
campus. Second priority shall be given to projects located within
one mile of a University of California or California State University
campus that is suffering from a severe shortage of housing and
limited availability of developable land as determined by the
department. Those determinations shall be set forth in the Notice of
Funding Availability and shall not be subject to the requirements of
Chapter 3.5 (commencing with Section 11340) of Part 1 of Title 2 of
the Government Code.
(ii) All funds shall be matched on a one-to-one basis from private
sources or by the University of California or California State
University. For the purposes of this subparagraph, "University of
California" includes the Hastings College of the Law.
(iii) Occupancy for the units shall be restricted to students
enrolled on a full-time basis in the University of California or
California State University.
(iv) Income eligibility pursuant to the Multifamily Housing
Program shall be established by verification of the combined income
of the student and his or her family.
(v) Any funds not used for this purpose within 24 months of the
date that the funds are made available shall be awarded pursuant to
subdivision (a) for the Downtown Rebound Program as set forth in
paragraph (1) of subdivision (c) of Section 50898.2.
(E) Any funds not encumbered for the purposes set forth in this
paragraph, except subparagraph (D), within 30 months of availability
shall revert to the Housing Rehabilitation Loan Fund created by
Section 50661 for general use in the Multifamily Housing Program.
(2) One hundred ninety-five million dollars ($195,000,000) shall
be transferred to the Emergency Housing and Assistance Fund to be
expended for the Emergency Housing and Assistance Program authorized
by Chapter 11.5 (commencing with Section 50800 of Part 2).
(3) One hundred ninety-five million dollars ($195,000,000) shall
be transferred to the Housing Rehabilitation Loan Fund to be expended
for the Multifamily Housing Program authorized by Chapter 6.7
(commencing with Section 50675) of Part 2, to be used for supportive
housing projects for individuals and households moving from emergency
shelters or transitional housing or those at risk of homelessness.
The criteria for selecting projects should give priority to
supportive housing for people with disabilities who would otherwise
be at high risk of homelessness where the applications represent
collaboration with programs that meet the needs of the person's
disabilities. The department may provide for higher per-unit loan
limits as reasonably necessary to provide and maintain rents
affordable to those individuals and households. For purposes of this
paragraph, "supportive housing" means housing with no limit on
length of stay, that is occupied by the target population, as defined
in subdivision (d) of Section 53260, and that is linked to onsite or
offsite services that assist the tenant to retain the housing,
improve his or her health status, maximize his or her ability to
live, and, when possible, work in the community.
(4) Two hundred million dollars ($200,000,000) shall be
transferred to the Joe Serna, Jr. Farmworker Housing Grant Fund to be
expended for farmworker housing programs authorized by Chapter 3.2
(commencing with Section 50517.5) of Part 2, except for the
following:
(A) Twenty-five million dollars ($25,000,000) shall be used for
projects that serve migratory agricultural workers as defined in
subdivision (i) of Section 7602 of Title 25 of the California Code of
Regulations.
(B) Twenty million dollars ($20,000,000) shall be used for
developments that also provide health services to the residents.
Recipients of these funds shall be required to provide ongoing
monitoring of funded developments to ensure compliance with the
requirements of the Joe Serna, Jr. Farmworker Housing Grant Program.
Projects receiving funds through this allocation shall be ineligible
for funding through the Joe Serna, Jr. Farmworker Housing Grant
Program.
(C) Any funds not encumbered for the purposes set forth in this
paragraph within 30 months of availability shall revert for general
use in the Joe Serna, Jr. Farmworker Housing Grant Program.
(5) Two hundred five million dollars ($205,000,000) shall be
transferred to the Self-Help Housing Fund. Notwithstanding Section
13340 of the Government Code and Section 50697.1, these funds are
hereby continuously appropriated without regard to fiscal years to
the department to be expended for the purposes of the CalHome Program
authorized by Chapter 6 (commencing with Section 50650) of Part 2,
except for the following:
(A) Seventy-five million dollars ($75,000,000) shall be
transferred to the Building Equity and Growth in Neighborhoods Fund
to be used for the Building Equity and Growth in Neighborhoods
(BEGIN) Program pursuant to Chapter 14.5 (commencing with Section
50860) of Part 1.
(B) Five million dollars ($5,000,000) shall be used to provide
grants to cities, counties, cities and counties, and nonprofit
organizations to provide grants for lower income tenants with
disabilities for the purpose of making exterior modifications to
rental housing in order to make that housing accessible to persons
with disabilities. For the purposes of this subparagraph, "exterior
modifications" includes modifications that are made to entryways or
to common areas of the structure or property. The program provided
for under this subparagraph shall not be subject to the requirements
of Chapter 3.5 (commencing with Section 11340) of Part 1 of Title 2
of the Government Code.
(C) Ten million dollars ($10,000,000) shall be expended for
construction management under the California Self-Help Housing
Program pursuant to subdivision (b) of Section 50696.
(D) Any funds not encumbered for the purposes set forth in this
paragraph within 30 months of availability shall revert for general
use in the CalHome Program.
(6) Five million dollars ($5,000,000) shall be transferred to the
Housing Rehabilitation Loan Fund to be expended for capital
expenditures in support of local code enforcement and compliance
programs. This allocation shall not be subject to the requirements
of Chapter 3.5 (commencing with Section 11340) of Part 1 of Title 2
of the Government Code. If the moneys allocated pursuant to this
paragraph are not expended within three years after being
transferred, the department may, in its discretion, transfer the
moneys to the Housing Rehabilitation Loan Fund to be expended for the
Multifamily Housing Program.
(7) Two hundred ninety million dollars ($290,000,000) shall be
transferred to the Self-Help Housing Fund. Notwithstanding Section
50697.1, these funds are hereby continuously appropriated to the
agency to be expended for the purposes of the California Homebuyer's
Downpayment Assistance Program authorized by Chapter 11 (commencing
with Section 51500) of Part 3, except for the following:
(A) Fifty million dollars ($50,000,000) shall be transferred to
the School Facilities Fee Assistance Fund as provided by subdivision
(a) of Section 51453 to be used for the Homebuyer Down Payment
Assistance Program of 2002 established by Section 51451.5.
(B) Eighty-five million dollars ($85,000,000) shall be transferred
to the California Housing Loan Insurance Fund to be used for
purposes of Part 4 (commencing with Section 51600).
(C) (i) Twelve million five hundred thousand dollars ($12,500,000)
shall be reserved 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 by a federally funded national nonprofit corporation, are
purchasing a residence in a community revitalization area targeted by
the nonprofit organization and who has received homeownership
counseling from the nonprofit organization. Community revitalization
areas shall be limited to targeted neighborhoods identified by
qualified nonprofit organizations as those neighborhoods in need of
economic stimulation, renovation, and rehabilitation through efforts
that include increased homeownership opportunities for low-income
families.
(ii) Effective January 1, 2004, 50 percent of the funds available
pursuant to clause (i) shall be available for downpayment assistance
in an amount not to exceed 6 percent of the home sales price.
(iii) After 12 months of availability, if more than 50 percent of
the funds set aside pursuant to clause (ii) have been encumbered, the
agency shall discontinue that program and make all remaining funds
available for downpayment assistance pursuant to clause (i). If,
however, less than 50 percent of the funds allocated pursuant to
clause (ii) are encumbered after that 12-month period, the agency
may, at its sole discretion, either make all remaining funds provided
pursuant to clause (i) available for the purpose of clause (ii), or
may continue to implement clause (ii) until all of the funds
allocated for that purpose as of January 1, 2004, have been
encumbered.
(D) Twenty-five million dollars ($25,000,000) shall be used for
downpayment assistance pursuant to Section 51505. After 18 months of
availability, if the agency determines that the funds set aside
pursuant to this section will not be utilized for purposes of Section
51505, these funds shall be available for the general use of the
agency for the purposes of the California Homebuyer's Downpayment
Assistance Program, but may also continue to be available for the
purposes of Section 51505.
(E) Funds not utilized for the purposes set forth in subparagraphs
(B) and (C) within 30 months shall revert for general use in the
California Homebuyer's Downpayment Assistance Program.
(8) One hundred million dollars ($100,000,000) shall be
transferred to the Jobs Housing Improvement Account to be expended as
capital grants to local governments for increasing housing pursuant
to enabling legislation. If the enabling legislation fails to become
law in the 2001-02 Regular Session of the Legislature, the specified
allocation for this program shall be void and the funds shall revert
for general use in the Multifamily Housing Program as specified in
paragraph (1) of subdivision (a).
(b) No portion of the money allocated pursuant to this section may
be expended for project operating costs, except that this section
does not preclude expenditures for operating costs from reserves
required to be maintained by or on behalf of the project sponsor.
(c) The Legislature may, from time to time, amend the provisions
of law related to programs to which funds are, or have been,
allocated pursuant to this section for the purpose of improving the
efficiency and effectiveness of the program, or for the purpose of
furthering the goals of the program.
(d) The Bureau of State Audits shall conduct periodic audits to
ensure that bond proceeds are awarded in a timely fashion and in a
manner consistent with the requirements of this part, and that
awardees of bond proceeds are using funds in compliance with
applicable provisions of this part.
SEC. 4. Section 51615 of the Health and Safety Code is amended to
read:
51615. (a) Chapter 3.5 (commencing with Section 6250)
of Division 7 of Title 1 of; and Article 9 (commencing with Section
11120) of Chapter 1 of, Chapter 3.5 (commencing with Section 11340)
of, Chapter 4 (commencing with Section 11370) of, and Chapter 5
(commencing with Section 11500) of, Part 1 of Division 3 of Title 2
of; the Government Code shall not apply to
the agency with respect to the administration of the insurance fund.
(b) Notwithstanding subdivision (a), the provisions described in
that subdivision shall not apply to any of the following:
the
(1) The agency's activities and records relating to
establishing rates and premiums ; the .
(2) Bids or contracts development of bids
for insurance, coinsurance, and reinsurance ; or to other
.
(3) Other matters necessary to maintain the competitiveness
of the agency in the mortgage insurance industry , including,
but not limited to, the development of financial products .
SEC. 5. Section 51628 of the Health and Safety Code is amended to
read:
51628. The agency shall, after a reasonable time during which it
may establish a business, be fairly competitive
with other insurers, and it is the intent of the Legislature that the
insurance fund shall ultimately become neither more nor less than
self-supporting. However, this section shall not be construed to
preclude the insurance fund from operating in a manner that will
permit the agency to create additional reserves from operations in
order that the agency can maximize its insurance capacity.
SEC. 6. Section 51642 of the Health and Safety Code is amended to
read:
51642. (a) The obligation of the agency and of the state to pay
any insurance benefit pursuant to contracts of insurance insuring
loans or bonds shall not exceed amounts deposited in the insurance
fund which that are made available
therefor under the respective contracts of insurance. Nothing in
this part shall require the Legislature to appropriate moneys from
the General Fund in the State Treasury to the insurance fund on
account of these obligations. The insurance of loans or bonds under
this part shall not directly, indirectly, or contingently obligate
the state or any political subdivision thereof to levy or to pledge
any form of taxation whatever therefor or to make any appropriation
for their payment.
(b) All contracts of insurance insuring loans or bonds pursuant to
this part shall contain on the face thereof a statement to the
following effect: "Neither the faith and credit nor the taxing power
of the State of
California is pledged to the payment of the principal of or interest
on this contract of insurance."
(c) Moneys in the insurance fund received from the proceeds of
bonds issued pursuant to the California Housing and Jobs Investment
Bond Act may not be transferred to any other fund of the agency
except as necessary to pay the expenses of operating the program of
loan and bond insurance for single-family residential housing
authorized by this part, nor shall the agency utilize any of these
moneys under the direction and control of the agency, other than
moneys in the insurance fund, to satisfy liabilities arising from
contracts of insurance authorized by this part.
(d) Moneys in the insurance fund may not be transferred to any
other fund of the agency except as necessary to pay the expenses of
operating the program of loan and bond insurance authorized by this
part, nor shall the agency utilize any moneys under the direction and
control of the agency to satisfy liabilities arising from contracts
of insurance authorized by this part.
(e) The agency, on behalf of , or for the benefit of,
the California Housing Loan Insurance Fund, may borrow or receive
moneys from the agency or from any federal, state, or local agency or
private entity, or may pledge funds from the California Housing
Finance Fund, in order to create or support
reserves in the insurance fund for loan or bond insurance as provided
in this part and as authorized by resolution of the board of
directors.
(f) The agency shall create a separate reserve account for
insuring mortgages of multifamily housing developments which shall
consist of all of the following:
(1) Funds transferred by redevelopment agencies pursuant to
Section 33334.2. The use of these funds shall be consistent with
Section 33334.4.
(2) Any other funds available for insuring mortgages of
multifamily housing developments as may be made available for that
purpose by law and as provided in this part.
(g) Reserve funds for the single-family mortgage guarantee
insurance program and the multifamily residential mortgage guaranty
insurance program shall not be commingled.
SEC. 7. Section 51643.5 of the Health and Safety Code is amended
to read:
51643.5. (a) The agency shall be subject to, and
comply with, the same reserve certification requirements as mortgage
guaranty insurers who are licensed pursuant to Chapter 2A (commencing
with Section 12640.01) of Part 6 of Division 2 of the Insurance
Code.
(b) The agency shall not otherwise be subject to the Insurance
Code with respect to the operation of the insurance fund, except as
provided in this part.
SEC. 8. Section 51646 of the Health and Safety Code is repealed.
51646. Insured loans shall not be made available pursuant to this
part in areas where there exists widespread damage of a substantial
nature to residential structures resulting from any natural or other
disaster, including fire, flood, wind, and earthquake.
SEC. 9. Section 51648 of the Health and Safety Code is amended to
read:
51648. The While maintaining the
actuarial soundness of the fund, the agency shall make efforts
to equitably do both of the following:
(a) Equitably distribute insurance based on a regionalized
basis, weighted in accordance with the geographic distribution of the
state's population. While maintaining the actuarial
soundness of the fund, the agency shall focus
(b) Focus on housing opportunities that benefit any of the
households following:
(1) Households with incomes at or below area median income
, households .
(2) Households that require mortgages at or above 95 percent
of the price of the home , or households .
(3) Households that are participating in locally
administered housing programs.
SEC. 10. Section 51650 of the Health and Safety Code is amended to
read:
51650. (a) (1) To be qualified for loan insurance, a
borrower shall be, or by reason of a loan insured pursuant to this
part shall become, the owner of a multifamily rental housing
development or a single-family residential structure for which an
insured loan is authorized, and shall be able to bear the usual
expenses of maintaining the housing development, development, or
structure and repay the loan. To
(2) To be qualified for loan insurance on a single-family
residential housing unit, the borrower shall also qualify
do either of the following:
(A) Qualify as a person or family of low or moderate income,
as that term is defined in Section 51603. The
(B) Until January 1, 2011, otherwise meet the requirements for
participation in an affordable housing program or product offered by
the Federal National Mortgage Association (Fannie Mae) or the Federal
Home Loan Mortgage Association (Freddie Mac).
(3) The agency may, by resolution, establish additional
requirements that it deems necessary to accomplish the purposes of
this part.
(b) For the purpose of increasing the efficiency and minimizing
the cost of the loan insurance program, the agency may insure or
issue commitments to insure loans upon the certification of an
officer of an approved lending institution that the borrower is
qualified for loan insurance according to eligibility requirements
specified by the agency.
(c) No later than January 1, 2009, the agency shall report to the
chairs of the housing committees of the Senate and the Assembly on
the types of programs that were offered pursuant to subparagraph (B)
of paragraph (2) of subdivision (a).
SEC. 11. Section 51651 of the Health and Safety Code is amended to
read:
51651. (a) The agency shall specify the percentage of
the outstanding principal indebtedness which
that may be insured under this part with respect to each
category of loan authorized to be insured under this part.
Loans not secured by a mortgage of first priority may be insured for
an amount equal to 100 percent of the outstanding principal
indebtedness. All other categories of loans may be insured only for
the percentage of the amount of risk that the agency determines is
necessary to induce approved lending institutions to make the loans
for the purposes specified in this part.
(b) The agency may insure loans secured by mortgages or deeds of
trust of first or second priority.
SEC. 12. Section 51652 of the Health and Safety Code is amended to
read:
51652. Loans insured under this part shall meet all of the
following requirements:
(a) The loans shall be made for a period acceptable to the agency
not to exceed 40 years or four-fifths of the remaining life
of the structure, as determined by the agency, whichever is less
.
(b) The loans shall be subject to maximum loan amounts for each
category of loan authorized to be insured under this part.
(c) The loans shall be secured by mortgages or deeds of trust
, or the loan shall be wholly or partially insured or
guaranteed by an agency or instrumentality of the United States,
except for property improvement loans under limits established by the
agency.
(d) The agency may establish loan-to-value limitations for each
category of loan and may set forth limitations on the further
encumbrance of structures and other real property securing loans, but
only to the extent necessary to prevent unreasonable impairment of
the agency's security. In no case involving refinancing and
rehabilitation shall the loan have a principal obligation in an
amount exceeding the sum of the estimated cost of rehabilitation, if
any, and the amount required to refinance existing indebtedness
secured by the property and settlement and closing costs incurred in
connection therewith.
(e) Loans involving the rehabilitation of residential structures
shall have a principal obligation not exceeding an amount which, when
added to any outstanding indebtedness constituting a lien upon the
property securing the loan, creates a total outstanding indebtedness
which would be reasonably secured by a mortgage of first priority on
the property pursuant to subdivision (d), and as set forth by the
agency.
(f) Loans involving refinancing may be insured only if refinancing
is necessary to permit a borrower to afford the cost of
rehabilitation, to lower his or her monthly debt-to-income payments,
minimize rent increases for occupants of the residential structure,
where the rents would otherwise exceed affordable rents due to the
expense of rehabilitation, or to achieve another purpose specified in
this division.
(g) With respect to loans involving the rehabilitation of a
residential structure, the agency shall determine that the
rehabilitation is economically feasible. For purposes of this
subdivision, the economic feasibility of rehabilitation projects
involving commercial space in a mixed residential and commercial
structure shall be determined independently for any structure to be
rehabilitated for mixed residential and commercial uses.
(h) For the purpose of increasing the efficiency and minimizing
the cost of the loan insurance program, the agency may insure, or
issue commitments to insure, loans, upon the certification of an
officer of an approved lending institution that the proposed
rehabilitation conforms to requirements specified by the agency
regarding economic feasibility.
(i) The agency shall contract with the insured or the borrower, or
both, during the term of the insurance if the agency determines that
either or both of those contracts is necessary to maintain
residential rentals available to lower income households at
affordable rents.
(j) Relocation payments shall be made to persons and families
displaced in making a site or residential structure available for
rehabilitation or construction financed by loans insured under this
part, and relocation advisory assistance provided to those persons,
as specified by Section 51063. Relocation payments for rehabilitation
or construction financed by loans insured by this part, shall also
be made to owners involuntarily displaced because of inability to
afford costs of compliance required pursuant to this part, but any
payment pursuant to Section 4623 of Title 42 of the United States
Code or Section 7263 of the Government Code shall be limited to the
reasonable costs of a replacement dwelling adequate to accommodate
the displaced person or family without regard to whether the dwelling
is otherwise comparable to the dwelling formerly occupied, less the
amount received from sale of the dwelling. Relocation payments may
be made from the proceeds of insured loans as authorized by the
agency.
(k) The residential structure for which a loan is insured pursuant
to this part shall be insured against loss due to fire and other
causes, as provided by the agency.
(l) Any other terms and conditions as the agency determines are
necessary to further the purposes of this part.
SEC. 13. Section 51654 of the Health and Safety Code is amended to
read:
51654. The agency may provide insurance pursuant to this part for
loans for residential all of the following:
(a) Loans for residential structures which
that will be occupied primarily by persons and
families of low or moderate income and for loans
.
(b) Loans for privately or publicly financed rental housing
developments which that will benefit
lower income households. "Privately financed rental housing
development," as used in this section
subdivision , includes rental housing developments financed by
local public entities, as defined in Section 50079.
(c) Loans that otherwise meet the requirements for participation
in an affordable housing program or product offered by the Federal
National Mortgage Association (Fannie Mae) or the Federal Home Loan
Mortgage Association (Freddie Mac).
SEC. 14. Section 51670 of the Health and Safety Code is amended to
read:
51670. (a) The agency may insure bonds issued by state or local
agencies , or other types of issuers approved by the board of
directors of the agency, to finance or refinance the
construction, rehabilitation, acquisition, or preservation of
single-family and multifamily residential housing for persons and
families of low and moderate income. The agency may charge and
collect insurance premiums for the insurance and fees for services
performed in conjunction with the processing and approval of
insurance applications as determined by the agency. The agency shall
take all reasonable steps to ensure that bonds insured pursuant to
this chapter are in a form satisfactory to the agency and contain
provisions relating to the underlying security for the bonds as may
be required by the agency.
(b) The agency shall take reasonable steps to ensure that both of
the following occur:
(1) The bonds contain, or are subject to, terms respecting
repayment, dates of maturity, and other provisions satisfactory to
the agency.
(2) The bonds contain, or are subject to, provisions that the
agency deems necessary with respect to security interests of the
agency, including provisions relating to subrogation, liens and
releases of liens, payment of taxes, escrow or trusteeship
requirements, or other matters.
SEC. 15. Section 53533 of the Health and Safety Code is amended to
read:
53533. (a) Money deposited in the fund from the sale of bonds
pursuant to this part shall be allocated for expenditure in
accordance with the following schedule:
(1) Nine hundred ten million dollars ($910,000,000) shall be
transferred to the Housing Rehabilitation Loan Fund to be expended
for the Multifamily Housing Program authorized by Chapter 6.7
(commencing with Section 50675) of Part 2, except for the following:
(A) Fifty million dollars ($50,000,000) shall be transferred to
the Preservation Opportunity Fund and, notwithstanding Section 13340
of the Government Code, is continuously appropriated without regard
to fiscal years for the preservation of at-risk housing pursuant to
enabling legislation Chapter 5 (commencing
with Section 50600) of Part 2 .
(B) Twenty million dollars ($20,000,000) shall be used for
nonresidential space for supportive services, including, but not
limited to, job training, health services, and child care within, or
immediately proximate to, projects to be funded under the Multifamily
Housing Program. This funding shall be in addition to any
applicable per-unit or project loan limits and may be in the form of
a grant. Service providers shall ensure that services are available
to project residents on a priority basis over the general public.
(C) Twenty-five million dollars ($25,000,000) shall be used for
matching grants to local housing trust funds pursuant to
enabling legislation Section 50843 .
(D) Fifteen million dollars ($15,000,000) shall be used for
student housing through the Multifamily Housing Program, subject to
the following provisions:
(i) The department shall give first priority for projects on land
owned by a University of California or California State University
campus. Second priority shall be given to projects located within
one mile of a University of California or California State University
campus that is suffering from a severe shortage of housing and
limited availability of developable land as determined by the
department. Those determinations shall be set forth in the Notice of
Funding Availability and shall not be subject to the requirements of
Chapter 3.5 (commencing with Section 11340) of Part 1 of Title 2 of
the Government Code.
(ii) All funds shall be matched on a one-to-one basis from private
sources or by the University of California or California State
University. For the purposes of this subparagraph, "University of
California" includes the Hastings College of the Law.
(iii) Occupancy for the units shall be restricted to students
enrolled on a full-time basis in the University of California or
California State University.
(iv) Income eligibility pursuant to the Multifamily Housing
Program shall be established by verification of the combined income
of the student and his or her family.
(v) Any funds not used for this purpose within 24 months of the
date that the funds are made available shall be awarded pursuant to
subdivision (a) for the Downtown Rebound Program as set forth in
paragraph (1) of subdivision (c) of Section 50898.2.
(E) Any funds not encumbered for the purposes set forth in this
paragraph, except subparagraph (D), within 30 months of availability
shall revert to the Housing Rehabilitation Loan Fund created by
Section 50661 for general use in the Multifamily Housing Program.
(F) If the enabling legislation for any program specified in this
paragraph fails to be enacted into law in the 2001-02 Regular Session
of the Legislature, the specified allocation for that program shall
be void and the funds shall revert for general use in the Multifamily
Housing Program.
(2) One hundred ninety-five million dollars ($195,000,000) shall
be transferred to the Emergency Housing and Assistance Fund to be
expended for the Emergency Housing and Assistance Program authorized
by Chapter 11.5 (commencing with Section 50800 of Part 2).
(3) One hundred ninety-five million dollars ($195,000,000) shall
be transferred to the Housing Rehabilitation Loan Fund to be expended
for the Multifamily Housing Program authorized by Chapter 6.7
(commencing with Section 50675) of Part 2, to be used for supportive
housing projects for individuals and households moving from emergency
shelters or transitional housing or those at risk of homelessness.
The criteria for selecting projects should give priority to
supportive housing for people with disabilities who would otherwise
be at high risk of homelessness where the applications represent
collaboration with programs that meet the needs of the person's
disabilities. The department may provide for higher per-unit loan
limits as reasonably necessary to provide and maintain rents
affordable to those individuals and households. For purposes of this
paragraph, "supportive housing" means housing with no limit on
length of stay, that is occupied by the target population, as defined
in subdivision (d) of Section 53260, and that is linked to onsite or
offsite services that assist the tenant to retain the housing,
improve his or her health status, maximize his or her ability to
live, and, when possible, work in the community.
(4) Two hundred million dollars ($200,000,000) shall be
transferred to the Joe Serna, Jr. Farmworker Housing Grant Fund to be
expended for farmworker housing programs authorized by Chapter 3.2
(commencing with Section 50517.5) of Part 2, except for the
following:
(A) Twenty-five million dollars ($25,000,000) shall be used for
projects that serve migratory agricultural workers as defined in
subdivision (i) of Section 7602 of Title 25 of the California Code of
Regulations. If, after July 1, 2003, funds remain after the
approval of all feasible applications, the department shall be deemed
an eligible recipient for the purposes of reconstructing migrant
centers operated through the Office of Migrant Services pursuant to
Chapter 8.5 (commencing with Section 50710) that would otherwise be
scheduled for closure due to health or safety considerations or are
in need of significant repairs to ensure the health and safety of the
residents. Of the dollars allocated by this section, the department
shall receive four million one hundred thousand dollars ($4,100,000)
for these purposes.
(B) Twenty million dollars ($20,000,000) shall be used for
developments that also provide health services to the residents.
Recipients of these funds shall be required to provide ongoing
monitoring of funded developments to ensure compliance with the
requirements of the Joe Serna, Jr. Farmworker Housing Grant Program.
Projects receiving funds through this allocation shall be ineligible
for funding through the Joe Serna, Jr. Farmworker Housing Grant
Program.
(C) Any funds not encumbered for the purposes set forth in this
paragraph within 30 months of availability shall revert for general
use in the Joe Serna, Jr. Farmworker Housing Grant Program.
(5) Two hundred five million dollars ($205,000,000) shall be
transferred to the Self-Help Housing Fund. Notwithstanding Section
13340 of the Government Code and Section 50697.1, these funds are
hereby continuously appropriated without regard to fiscal years to
the department to be expended for the purposes of the CalHome Program
authorized by Chapter 6 (commencing with Section 50650) of Part 2,
except for the following:
(A) Seventy-five million dollars ($75,000,000) shall be
transferred to the Building Equity and Growth in Neighborhoods Fund
to be used for the Building Equity and Growth in Neighborhoods
(BEGIN) Program pursuant to enabling legislation
Chapter 4.5 (commencing with Section 50860) of Part 1 .
(B) Five million dollars ($5,000,000) shall be used to provide
grants to cities, counties, cities and counties, and nonprofit
organizations to provide grants for lower income tenants with
disabilities for the purpose of making exterior modifications to
rental housing in order to make that housing accessible to persons
with disabilities. For the purposes of this subparagraph, "exterior
modifications" includes modifications that are made to entryways or
to common areas of the structure or property. The program provided
for under this subparagraph shall not be subject to the requirements
of Chapter 3.5 (commencing with Section 11340) of Part 1 of Title 2
of the Government Code.
(C) Ten million dollars ($10,000,000) shall be expended for
construction management under the California Self-Help Housing
Program pursuant to subdivision (b) of Section 50696.
(D) Any funds not encumbered for the purposes set forth in this
paragraph within 30 months of availability shall revert for general
use in the CalHome Program.
(E) If the enabling legislation for any program specified in this
paragraph fails to be enacted into law in the 2001-02 Regular Session
of the Legislature, the specified allocation for that program shall
be void and the funds shall revert for general use in the CalHome
Program.
(6) Five million dollars ($5,000,000) shall be transferred to the
Housing Rehabilitation Loan Fund to be expended for capital
expenditures in support of local code enforcement and compliance
programs. This allocation shall not be subject to the requirements
of Chapter 3.5 (commencing with Section 11340) of Part 1 of Title 2
of the Government Code. If the moneys allocated pursuant to this
paragraph are not expended within three years after being
transferred, the department may, in its discretion, transfer the
moneys to the Housing Rehabilitation Loan Fund to be expended for the
Multifamily Housing Program.
(7) Two hundred ninety million dollars ($290,000,000) shall be
transferred to the Self-Help Housing Fund. Notwithstanding Section
50697.1, these funds are hereby continuously appropriated to the
agency to be expended for the purposes of the California Homebuyer's
Downpayment Assistance Program authorized by Chapter 11 (commencing
with Section 51500) of Part 3, except for the following:
(A) Fifty million dollars ($50,000,000) shall be transferred to
the School Facilities Fee Assistance Fund as provided by subdivision
(a) of Section 51453 to be used for the Homebuyer Down Payment
Assistance Program of 2002 established by Section 51451.5.
(B) Eighty-five million dollars ($85,000,000) shall be transferred
to the California Housing Loan Insurance Fund to be used for
purposes of Part 4 (commencing with Section 51600). The agency
may transfer these moneys as often as quarterly in amounts that shall
not exceed the dollar amount of new insurance written by the agency
during the preceding quarter for both of the following:
(i) Loans for the purchase of homes made to owner-occupant
borrowers with incomes not exceeding 120 percent of the area median
income.
(ii) Loans or bonds for the purpose of financing multifamily
rental housing developments, where the percentage of units in each
such development designated for lower income and very low income
households is consistent with the requirements of Chapter 6.7
(commencing with Section 51325), divided by the risk-to-capital ratio
required for the maintenance of satisfactory credit ratings from
nationally recognized credit rating services.
(C) (i) Twelve million five hundred thousand dollars
($12,500,000) shall be reserved 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 by a federally funded national nonprofit
corporation, is are purchasing a
residence in a community revitalization area targeted by the
nonprofit organization and who has received homeownership counseling
from the nonprofit organization. Community revitalization areas
shall be limited to targeted neighborhoods identified by qualified
nonprofit organizations as those neighborhoods in need of economic
stimulation, renovation, and rehabilitation through efforts that
include increased homeownership opportunities for low-income
families.
(ii) Effective January 1, 2004, 50 percent of the funds available
pursuant to clause (i) shall be available for downpayment assistance
in an amount not to exceed 6 percent of the home sales price.
(iii) After 12 months of availability, if more than 50 percent of
the funds set aside pursuant to clause (ii) have been encumbered, the
agency shall discontinue that program and make all remaining funds
available for downpayment assistance pursuant to clause (i). If,
however, less than 50 percent of the funds allocated pursuant to
clause (ii) are encumbered after that 12-month period, the agency
may, at its sole discretion, either make all
remaining funds provided pursuant to clause (i)
available for the purpose of clause (ii), or may continue to
implement clause (ii) until all of the funds allocated for that
purpose as of January 1, 2004, have been encumbered.
(D) Twenty-five million dollars ($25,000,000) shall be used for
downpayment assistance pursuant to Section 51505. After 18 months of
availability, if the agency determines that the funds set aside
pursuant to this section will not be utilized for purposes of Section
51505, these funds shall be available for the general use of the
agency for the purposes of the California Homebuyer's Downpayment
Assistance Program, but may also continue to be available for the
purposes of Section 51505.
(E) Funds not utilized for the purposes set forth in subparagraphs
(B) and (C) within 30 months shall revert for general use in the
California Homebuyer's Downpayment Assistance Program.
(8) One hundred million dollars ($100,000,000) shall be
transferred to the Jobs Housing Improvement Account to be expended as
capital grants to local governments for increasing housing pursuant
to enabling legislation. If the enabling legislation fails to become
law in the 2001-02 Regular Session of the Legislature, the specified
allocation for this program shall be void and the funds shall revert
for general use in the Multifamily Housing Program as specified in
paragraph (1) of subdivision (a).
(b) No portion of the money allocated pursuant to this section may
be expended for project operating costs, except that this section
does not preclude expenditures for operating costs from reserves
required to be maintained by or on behalf of the project sponsor.
(c) The Legislature may, from time to time, amend the provisions
of law related to programs to which funds are, or have been,
allocated pursuant to this section for the purpose of improving the
efficiency and effectiveness of the program, or for the purpose of
furthering the goals of the program.
(d) The Bureau of State Audits shall conduct periodic audits to
ensure that bond proceeds are awarded in a timely fashion and in a
manner consistent with the requirements of this part, and that
awardees of bond proceeds are using funds in compliance with
applicable provisions of this part.
SEC. 16. Section 53533 of the Health and Safety Code is amended to
read:
53533. (a) Money deposited in the fund from the sale of bonds
pursuant to this part shall be allocated for expenditure in
accordance with the following schedule:
(1) Nine hundred ten million dollars ($910,000,000) shall be
transferred to the Housing Rehabilitation Loan Fund to be expended
for the Multifamily Housing Program authorized by Chapter 6.7
(commencing with Section 50675) of Part 2, except for the following:
(A) Fifty million dollars ($50,000,000) shall be transferred to
the Preservation Opportunity Fund and, notwithstanding Section 13340
of the Government Code, is continuously appropriated without regard
to fiscal years for the preservation of at-risk housing pursuant to
enabling legislation Chapter 5 (commencing
with Section 50600) of Part 2 .
(B) Twenty million dollars ($20,000,000) shall be used for
nonresidential space for supportive services, including, but not
limited to, job training, health services, and child care within, or
immediately proximate to, projects to be funded under the Multifamily
Housing Program. This funding shall be in addition to any
applicable per-unit or project loan limits and may be in the form of
a grant. Service providers shall ensure that services are available
to project residents on a priority basis over the general public.
(C) Twenty-five million dollars ($25,000,000) shall be used for
matching grants to local housing trust funds pursuant to
enabling legislation Section 50843 .
(D) Fifteen million dollars ($15,000,000) shall be used for
student housing through the Multifamily Housing Program, subject to
the following provisions:
(i) The department shall give first priority for projects on land
owned by a University of California or California State University
campus. Second priority shall be given to projects located within
one mile of a University of California or California State University
campus that is suffering from a severe shortage of housing and
limited availability of developable land as determined by the
department. Those determinations shall be set forth in the Notice of
Funding Availability and shall not be subject to the requirements of
Chapter 3.5 (commencing with Section 11340) of Part 1 of Title 2 of
the Government Code.
(ii) All funds shall be matched on a one-to-one basis from private
sources or by the University of California or California State
University. For the purposes of this subparagraph, "University of
California" includes the Hastings College of the Law.
(iii) Occupancy for the units shall be restricted to students
enrolled on a full-time basis in the University of California or
California State University.
(iv) Income eligibility pursuant to the Multifamily Housing
Program shall be established by verification of the combined income
of the student and his or her family.
(v) Any funds not used for this purpose within 24 months of the
date that the funds are made available shall be awarded pursuant to
subdivision (a) for the Downtown Rebound Program as set forth in
paragraph (1) of subdivision (c) of Section 50898.2.
(E) Any funds not encumbered for the purposes set forth in this
paragraph, except subparagraph (D), within 30 months of availability
shall revert to the Housing Rehabilitation Loan Fund created by
Section 50661 for general use in the Multifamily Housing Program.
(F) If the enabling legislation for any program specified in this
paragraph fails to be enacted into law in the 2001-02 Regular Session
of the Legislature, the specified allocation for that program shall
be void and the funds shall revert for general use in the Multifamily
Housing Program.
(2) One hundred ninety-five million dollars ($195,000,000) shall
be transferred to the Emergency Housing and Assistance Fund to be
expended for the Emergency Housing and Assistance Program authorized
by Chapter 11.5 (commencing with Section 50800 of Part 2).
(3) One hundred ninety-five million dollars ($195,000,000) shall
be transferred to the Housing Rehabilitation Loan Fund to be expended
for supportive housing projects under the Multifamily
Housing Program authorized by Chapter 6.7 (commencing with Section
50675) of Part 2, to be used for supportive housing projects
for serve individuals and households moving
from emergency shelters or transitional housing or those at risk of
homelessness. The criteria for selecting projects should
give priority to supportive housing for people with disabilities who
would otherwise be at high risk of homelessness where the
applications represent collaboration with programs that meet the
needs of the person's disabilities. The department may provide for
higher per-unit loan limits as reasonably necessary to provide and
maintain rents affordable to those individuals and households. For
purposes of this paragraph, "supportive housing" means housing with
no limit on length of stay, that is occupied by the target
population, as defined in subdivision (d) of Section 53260, and that
is linked to onsite or offsite services that assist the tenant to
retain the housing, improve his or her health status, maximize his or
her ability to live, and, when possible, work in the community.
(4) Two hundred million dollars ($200,000,000) shall be
transferred to the Joe Serna, Jr. Farmworker Housing Grant Fund to be
expended for farmworker housing programs authorized by Chapter 3.2
(commencing with Section 50517.5) of Part 2, except for the
following:
(A) Twenty-five million dollars ($25,000,000) shall be used for
projects that serve migratory agricultural workers as defined in
subdivision (i) of Section 7602 of Title 25 of the California Code of
Regulations. If, after July 1, 2003, funds remain after the
approval of all feasible applications, the department shall be deemed
an eligible recipient for the purposes of reconstructing migrant
centers operated through the Office of Migrant Services pursuant to
Chapter 8.5 (commencing with Section 50710) that would otherwise be
scheduled for closure due to health or safety considerations or are
in need of significant repairs to ensure the health and safety of the
residents. Of the dollars allocated by this section, the department
shall receive four million one hundred thousand dollars ($4,100,000)
for these purposes.
(B) Twenty million dollars ($20,000,000) shall be used for
developments that also provide health services to the residents.
Recipients of these funds shall be required to provide ongoing
monitoring of funded developments to ensure compliance with the
requirements of the Joe Serna, Jr. Farmworker Housing Grant Program.
Projects receiving funds through this allocation shall be ineligible
for funding through the Joe Serna, Jr. Farmworker Housing Grant
Program.
(C) Any funds not encumbered for the purposes set forth in this
paragraph within 30 months of availability shall revert for general
use in the Joe Serna, Jr. Farmworker Housing Grant Program.
(5) Two hundred five million dollars ($205,000,000) shall be
transferred to the Self-Help Housing Fund. Notwithstanding Section
13340 of the Government Code and Section 50697.1, these funds are
hereby continuously appropriated without regard to fiscal years to
the department to be expended for the purposes of the CalHome Program
authorized by Chapter 6 (commencing with Section 50650) of Part 2,
except for the following:
(A) Seventy-five million dollars ($75,000,000) shall be
transferred to the Building Equity and Growth in Neighborhoods Fund
to be used for the Building Equity and Growth in Neighborhoods
(BEGIN) Program pursuant to enabling legislation
Chapter 4.5 (commencing with Section 50860) of Part 1 .
(B) Five million dollars ($5,000,000) shall be used to provide
grants to cities, counties, cities and counties, and nonprofit
organizations to provide grants for lower income tenants with
disabilities for the purpose of making exterior modifications to
rental housing in order to make that housing accessible to persons
with disabilities. For the purposes of this subparagraph, "exterior
modifications" includes modifications that are made to entryways or
to common areas of the structure or property. The program provided
for under this subparagraph shall not be subject to the requirements
of Chapter 3.5 (commencing with Section 11340) of Part 1 of Title 2
of the Government Code.
(C) Ten million dollars ($10,000,000) shall be expended for
construction management under the California Self-Help Housing
Program pursuant to subdivision (b) of Section 50696.
(D) Any funds not encumbered for the purposes set forth in this
paragraph within 30 months of availability shall revert for general
use in the CalHome Program.
(E) If the enabling legislation for any program specified in this
paragraph fails to be enacted into law in the 2001-02 Regular Session
of the Legislature, the specified allocation for that program shall
be void and the funds shall revert for general use in the CalHome
Program.
(6) Five million dollars ($5,000,000) shall be transferred to the
Housing Rehabilitation Loan Fund to be expended for capital
expenditures in support of local code enforcement and compliance
programs. This allocation shall not be subject to the requirements
of Chapter 3.5 (commencing with Section 11340) of Part 1 of Title 2
of the Government Code. If the moneys allocated pursuant to this
paragraph are not expended within three years after being
transferred, the department may, in its discretion, transfer the
moneys to the Housing Rehabilitation Loan Fund to be expended for the
Multifamily Housing Program.
(7) Two hundred ninety million dollars ($290,000,000) shall be
transferred to the Self-Help Housing Fund. Notwithstanding Section
50697.1, these funds are hereby continuously appropriated to the
agency to be expended for the purposes of the California Homebuyer's
Downpayment Assistance Program authorized by Chapter 11 (commencing
with Section 51500) of Part 3, except for the following:
(A) Fifty million dollars ($50,000,000) shall be transferred to
the School Facilities Fee Assistance Fund as provided by subdivision
(a) of Section 51453 to be used for the Homebuyer Down Payment
Assistance Program of 2002 established by Section 51451.5.
(B) Eighty-five million dollars ($85,000,000) shall be transferred
to the California Housing Loan Insurance Fund to be used for
purposes of Part 4 (commencing with Section 51600). The agency
may transfer these moneys as often as quarterly in amounts that shall
not exceed the dollar amount of new insurance written by the agency
during the preceding quarter for both of the following:
(i) Loans for the purchase of homes made to owner-occupant
borrowers with incomes not exceeding 120 percent of the area median
income.
(ii) Loans or bonds for the purpose of financing multifamily
rental housing developments, where the percentage of units in each
such development designated for lower income and very low income
households is consistent with the requirements of Chapter 6.7
(commencing with Section 51325), divided by the risk-to-capital ratio
required for the maintenance of satisfactory credit ratings from
nationally recognized credit rating services.
(C) (i) Twelve million five hundred thousand dollars
($12,500,000) shall be reserved 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 by a federally funded national nonprofit
corporation, is are purchasing a
residence in a community revitalization area targeted by the
nonprofit organization and who has received homeownership counseling
from the nonprofit organization. Community revitalization areas
shall be limited to targeted neighborhoods identified by qualified
nonprofit organizations as those neighborhoods in need of economic
stimulation, renovation, and rehabilitation through efforts that
include increased homeownership opportunities for low-income
families.
(ii) Effective January 1, 2004, 50 percent of the funds available
pursuant to clause (i) shall be available for downpayment assistance
in an amount not to exceed 6 percent of the home sales price.
(iii) After 12 months of availability, if more than 50 percent of
the funds set aside pursuant to clause (ii) have been encumbered, the
agency shall discontinue that program and make all remaining funds
available for downpayment assistance pursuant to clause (i). If,
however, less than 50 percent of the funds allocated pursuant to
clause (ii) are encumbered after that 12-month period, the agency
may, at its sole discretion, either make all remaining funds provided
pursuant to clause (i) available for the purpose of clause (ii), or
may continue to implement clause (ii) until all of the funds
allocated for that purpose as of January 1, 2004, have been
encumbered.
(D) Twenty-five million dollars ($25,000,000) shall be used for
downpayment assistance pursuant to Section 51505. After 18 months of
availability, if the agency determines that the funds set aside
pursuant to this section will not be utilized for purposes of Section
51505, these funds shall be available for the general use of the
agency for the purposes of the California Homebuyer's Downpayment
Assistance Program, but may also continue to be available for the
purposes of Section 51505.
(E) Funds not utilized for the purposes set forth in subparagraphs
(B) and (C) within 30 months shall revert for general use in the
California Homebuyer's Downpayment Assistance Program.
(8) One hundred million dollars ($100,000,000) shall be
transferred to the Jobs Housing Improvement Account to be expended as
capital grants to local governments for increasing housing pursuant
to enabling legislation. If the enabling legislation fails to become
law in the 2001-02 Regular Session of the Legislature, the specified
allocation for this program shall be void and the funds shall revert
for general use in the Multifamily Housing Program as specified in
paragraph (1) of subdivision (a).
(b) No portion of the money allocated pursuant to this section may
be expended for project operating costs, except that this section
does not preclude expenditures for operating costs from reserves
required to be maintained by or on behalf of the project sponsor.
(c) The Legislature may, from time to time, amend the provisions
of law related to programs to which funds are, or have been,
allocated pursuant to this section for the purpose of improving the
efficiency and effectiveness of the program, or for the purpose of
furthering the goals of the program.
(d) The Bureau of State Audits shall conduct periodic audits to
ensure that bond proceeds are awarded in a timely fashion and in a
manner consistent with the requirements of this part, and that
awardees of bond proceeds are using funds in compliance with
applicable provisions of this part.
SEC. 17. Section 16 of this bill incorporates amendments to
Section 53533 of the Health and Safety Code proposed by both this
bill and AB 1475. It shall only become operative if (1) both bills
are enacted and become effective on or before January 1, 2004, (2)
each bill amends Section 53533 of the Health and Safety Code, and (3)
this bill is enacted after AB 1475, in which case Section 15 of this
bill shall not become operative.