BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 1330|
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THIRD READING
Bill No: AB 1330
Author: Salas (D)
Amended: 7/13/09 in Senate
Vote: 21
SENATE VETERANS AFFAIRS COMMITTEE : 6-0, 6/23/09
AYES: Denham, Correa, Wiggins, Negrete McLeod, Cedillo,
Maldonado
NO VOTE RECORDED: Wyland
SENATE TRANSPORTATION & HOUSING COMMITTEE : 10-0, 7/7/09
AYES: Lowenthal, Huff, Ashburn, DeSaulnier, Harman,
Hollingsworth, Kehoe, Pavley, Simitian, Wolk
NO VOTE RECORDED: Oropeza
SENATE APPROPRIATIONS COMMITTEE : 13-0, 8/27/09
AYES: Kehoe, Cox, Corbett, Denham, Hancock, Leno, Oropeza,
Price, Runner, Walters, Wolk, Wyland, Yee
ASSEMBLY FLOOR : 79-0, 5/28/09 - See last page for vote
SUBJECT : Veterans: pilot project: cooperative housing
SOURCE : Author
DIGEST : This bill authorizes the California Department
of Veterans Affairs (CDVA) to establish a pilot project for
the purpose of establishing a cooperative housing project,
in which CDVA prescribe the rules, regulations, and
conditions necessary to implement the pilot project. The
CONTINUED
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bill requires that any cooperative housing project
established pursuant to those provisions be restricted for
use and occupancy by military veterans and their families
for a period of at least 55 years.
ANALYSIS :
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:
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.
D. Cooperative housing, as defined.
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
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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 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's office 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.
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FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee analysis:
Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11
2011-12 Fund
Coop housing unknown,
potentially multi-million Special*
*Cal-Vet Home Loan Fund
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Anderson, Arambula, Beall, Bill
Berryhill, Tom Berryhill, Blakeslee, Block, Blumenfield,
Brownley, Buchanan, Caballero, Charles Calderon, Carter,
Chesbro, Conway, Cook, Coto, Davis, De La Torre, De Leon,
DeVore, Duvall, Emmerson, Eng, Evans, Feuer, Fletcher,
Fong, Fuentes, Fuller, Furutani, Gaines, Galgiani,
Garrick, Gilmore, Hagman, Hall, Harkey, Hayashi,
Hernandez, Hill, Huber, Huffman, Jeffries, Jones, Knight,
Krekorian, Lieu, Logue, Bonnie Lowenthal, Ma, Mendoza,
Miller, Monning, Nava, Niello, Nielsen, John A. Perez, V.
Manuel Perez, Portantino, Price, Ruskin, Salas, Saldana,
Silva, Skinner, Smyth, Solorio, Audra Strickland,
Swanson, Torlakson, Torres, Torrico, Tran, Villines,
Yamada, Bass
NO VOTE RECORDED: Nestande
TSM:do 9/1/09 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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