BILL ANALYSIS
AB 1330
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 1330 (Salas)
As Amended July 13, 2009
Majority vote
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|ASSEMBLY: |79-0 |(May 28, 2009) |SENATE: |30-0 |(September 9, |
| | | | | |2009) |
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Original Committee Reference: V.A.
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.
The Senate amendments are technical and nonsubstantive.
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 CDVA to assist
veterans in acquiring homes and farms by providing that the
department may purchase a farm or home, and then selling it to a
purchaser. "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)Cooperative housing, as defined.
FISCAL EFFECT : According to the Senate Appropriations
Committee, expanding the eligibility of the use of the Cal-Vet
home loan funds to cooperative housing projects could place cost
pressure on the availability of funds in the future.
COMMENTS : In 1921 the Legislature created the Cal-Vet Program,
since its inception the state has assisted more than 400,000
California veterans of World War I and World War II, as well as
AB 1330
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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. California is one of five states to operate
such a program.
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).
Analysis Prepared by : Eric Worthen / V. A. / (916) 319-3550
FN: 0003115