BILL ANALYSIS
AB 1330
Page 1
ASSEMBLY THIRD READING
AB 1330 (Salas)
As Amended May 5, 2009
Majority vote
VETERANS AFFAIRS 8-0 HOUSING 7-0
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|Ayes:|Salas, Cook, DeVore, |Ayes:|Torres, Harkey, Eng, |
| |Gilmore, Huber, Lieu, | |Fletcher, Ma, Saldana, |
| |Saldana, Yamada | |Swanson |
| | | | |
|-----+--------------------------+-----+--------------------------|
| | | | |
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APPROPRIATIONS 15-0
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|Ayes:|De Leon, Nielsen, Ammiano, | | |
| |Charles Calderon, Davis, | | |
| |Duvall, Fuentes, Hall, | | |
| |Harkey, John A. Perez, | | |
| |Price, Skinner, Solorio, | | |
| |Audra Strickland, Torlakson | | |
| | | | |
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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 :
1)Provides farm and home purchase benefits for qualifying
veterans under the Veterans' Farm and Home Purchase Act of
1974 and subsequent Acts.
2)Authorizes the CDVA to assist veterans in acquiring homes and
farms by generally providing that CDVA may purchase a farm or
home, which CDVA then sells to a purchaser, as defined.
3)Defines "home" to mean any of the following:
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a) 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;
b) Condominium, as defined;
c) Mobile home, as defined; and,
d) Cooperative housing, as defined.
FISCAL EFFECT : The Assembly Appropriations Committee states
there are minor absorbable costs to CDVA and the California
Department of Housing and Community Development to the extent
CDVA elects to undertake the pilot project. CDVA already has
statutory authority under the CalVet Program (CalVet) to finance
cooperative housing.
COMMENTS : In 1921 the Legislature created the CalVet Farm and
Home Loan Program (CalVet), to provide farm and home buying
assistance to the veterans returning from World War I. The
CalVet 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,
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 CalVet Program.
California is one of five states to operate such a program. The
others are Alaska, Oregon, Texas, and Wisconsin.
Technically, 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 CalVet Program operates very
much like a conventional home loan program. In effect, CalVet
makes home loans similar to those of other lenders. War
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veterans participating in the CalVet 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 CalVet Program.
Analysis Prepared by : Eric Worthen / V. A. / (916) 319-3550
FN: 0000951