BILL ANALYSIS
AB 1330
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Date of Hearing: April 14, 2009
ASSEMBLY COMMITTEE ON VETERANS AFFAIRS
Mary Salas, Chair
AB 1330 (Salas) - As Introduced: February 27, 2009
SUBJECT : Veterans: pilot project: cooperative housing.
SUMMARY : Authorizes the California Department of Veterans
Affairs (CDVA) to establish a pilot project for the purpose of
operating a cooperative housing project, in which CDVA would
prescribe the rules, regulations, and conditions necessary to
implement the pilot project.
EXISTING LAW provides farm and home purchase benefits for
qualifying veterans under the Veterans' Farm and Home Purchase
Act of 1974 and subsequent acts. It authorizes the Department of
Veterans Affairs to assist veterans in acquiring homes and farms
by generally providing that the department may purchase a farm
or home, which the department then sells to a purchaser, as
defined. "Home" means any of the following:
1)A parcel of real estate upon which there is a dwelling house
or other buildings that will, in the opinion of the
department, suit the needs of the purchaser and the
purchaser's dependents as a place of abode;
2)Condominium, as defined;
3)Mobile home, as defined;
4)Cooperative housing, as defined.
FISCAL EFFECT : Unknown
COMMENTS : In 1921 the Legislature created the Cal-Vet Program,
to provide farm and home buying assistance to the veterans
returning from World War I. The Cal-Vet Program currently
operates under the authority of the Veterans Farm and Home
Purchase Acts of 1943 and 1974 and various bond acts set forth
in the state Military and Veterans Code.
Since its inception 83 years ago, the state has assisted more
than 400,000 California veterans of World War I and World War
II, as well as those serving on active duty during the Korean,
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Vietnam, and Persian Gulf conflicts. The vast majority of state
assistance has been provided for the purchase of single-family
homes, although some farm, mobile home, and condominium
purchases have also been financed through the Cal-Vet Program.
California is one of five states to operate such a program. The
others are Alaska, Oregon, Texas, and Wisconsin.
Technically, the California Department of Veterans Affairs
(CDVA) operates a home purchase rather than a home loan program.
CDVA purchases new and existing homes, farms, and mobile homes
that have been selected by an eligible war veteran. The state
then resells the property in accordance with a contract
requiring installment payments by the veteran. Despite this
technical distinction, the Cal-Vet Program operates very much
like a conventional home loan program. In effect, Cal-Vet makes
home loans similar to those of other lenders. War veterans
participating in the Cal-Vet Program make monthly mortgage
payments just like any typical borrower.
Cooperative Housing . The National Association of Housing
Cooperatives (NAHC) describes cooperative housing as the joining
together of people in a democratic basis to own or control the
housing and/or community facilities in which they live.
Typically this is accomplished by establishing a not-for-profit
corporation. Like any corporation, ownership of the assets
(real estate) is accomplished through ownership of stock in the
company.
Rather than paying a mortgage payment each month, each Tenant
(stockowner) pays his or her share of the total operating costs
of the corporation. Benefits to the veteran under such an
arrangement include establishing personal income tax deductions,
lower turnover rates, lower real estate tax assessments (in
some local areas), controlled maintenance costs, and resident
participation and control.
The author of this bill seeks to expand the opportunities for
housing to a wider range of veterans with varied financial
backgrounds and needs by including cooperative housing as an
approved home purchase within the Cal-Vet Farm and Home Loan
Program (Cal-Vet Program).
REGISTERED SUPPORT / OPPOSITION :
Support
AB 1330
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None on file.
Opposition
None on file.
Analysis Prepared by : Eric Worthen / V. A. / (916) 319-3550