BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1036
                                                                  Page  1

          Date of Hearing:   May 14, 2003

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                              Darrell Steinberg, Chair

                AB 1036 (Mullin) - As Introduced:  February 20, 2003 

          Policy Committee:                              Veterans  
          AffairsVote: 14-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill:

          1)Increases the maximum allowable Cal-Vet farm loan to 150  
            percent of the maximum Cal-Vet home loan.  (The home loan  
            limit-currently $322,700-is set at the annual Fannie Mae loan  
            limit.)

          2)Increases the maximum Cal-Vet mobilehome loan from $70,000 to  
            $125,000.

           FISCAL EFFECT  

          Increasing the limits for farm and mobilehome loans will  
          decrease to some extent the available pool of Cal-Vet funding  
          for other loan recipients.  This impact is unknown, but could  
          exceed $150,000 in any year. 

          (The Cal-Vet program's Farm and Home Building Fund of 1943  
          consists of revenue bonds and self liquidating general  
          obligation bonds which are retired with payments from program  
          beneficiaries.)

           COMMENTS  

           1)Purpose  .  According to the sponsor, the Department of Veterans  
            Affairs, the maximum Cal-Vet loan amount for farms and  
            mobilehomes has not increased for several years and is not  
            reflective of current costs.  

           2)Prior Legislation  .  SB 1893 (Johannessen)-Chapter 473,  








                                                                  AB 1036
                                                                  Page  2

            Statutes of 2002, raised the maximum Cal-Vet loan limit for a  
            single family home to equal the annual Fannie Mae loan limit.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081