BILL NUMBER: AB 1529	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Salas

                        FEBRUARY 27, 2009

   An act to amend Section 51345 of the Health and Safety Code,
relating to housing.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1529, as introduced, Salas. Home Purchase Assistance Program:
limitations.
   Existing law establishes the Home Purchase Assistance Program,
administered by the California Housing Finance Agency, to assist
first-time homebuyers to utilize existing mortgage financing
available pursuant to existing law. Existing law limits the term of
the home purchase assistance to the term of the primary loan.
   This bill would make a nonsubstantive change to this provision of
law.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.

   AB 1529, as introduced, Salas. Home Purchase Assistance Program:
limitations.
   Existing law establishes the Home Purchase Assistance Program,
administered by the California Housing Finance Agency, to assist
first-time homebuyers to utilize existing mortgage financing
available pursuant to existing law. Existing law limits the term of
the home purchase assistance to the term of the primary loan.
   This bill would make a nonsubstantive change to this provision of
law.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 51345 of the Health and Safety Code is amended
to read:
   51345.  (a)  The agency shall administer a home purchase
assistance program in accordance with this chapter. The purpose of
the home purchase assistance program is to assist first-time
homebuyers to utilize existing mortgage financing available pursuant
to this part or Division 4 (commencing with Section 800) of the
Military and Veterans Code with the additional financial resources
made available pursuant to Part 8 (commencing with Section 53130).
   (b)  Home purchase assistance under this chapter shall include,
but not be limited to: (1) an interest rate subsidy to reduce the
interest rate, (2) a deferred-payment, low-interest, second-mortgage
loan to reduce the principal and interest payments, and (3)
downpayment assistance to make financing affordable to first-time
homebuyers.
   (c)  In no case shall the interest rate subsidy reduce the
effective interest rate to the borrower below 3 percent per annum,
nor shall the deferred-payment, low-interest, second mortgage loan
exceed 49 percent of the total debt financing necessary to purchase
the home.
   (d)  The amount of home purchase assistance shall be a second
mortgage loan secured by a deed of trust of second priority to the
primary financing provided by the agency or the Department of
Veterans Affairs. The term of the home purchase assistance 
shall   may  not exceed the term of the primary
loan.
   (e)  The amount of home purchase assistance shall be due and
payable at the end of the term, upon the sale of the home, or upon
refinancing. The borrower may refinance the mortgages on the home if
the principal of and accrued interest on the second mortgage loan
securing the home purchase assistance are repaid in full. All
repayments shall be deposited in the fund.
  SECTION 1.  Section 51345 of the Health and Safety Code is amended
to read:
   51345.  (a)  The agency shall administer a home purchase
assistance program in accordance with this chapter. The purpose of
the home purchase assistance program is to assist first-time
homebuyers to utilize existing mortgage financing available pursuant
to this part or Division 4 (commencing with Section 800) of the
Military and Veterans Code with the additional financial resources
made available pursuant to Part 8 (commencing with Section 53130).
   (b)  Home purchase assistance under this chapter shall include,
but not be limited to: (1) an interest rate subsidy to reduce the
interest rate, (2) a deferred-payment, low-interest, second-mortgage
loan to reduce the principal and interest payments, and (3)
downpayment assistance to make financing affordable to first-time
homebuyers.
   (c)  In no case shall the interest rate subsidy reduce the
effective interest rate to the borrower below 3 percent per annum,
nor shall the deferred-payment, low-interest, second mortgage loan
exceed 49 percent of the total debt financing necessary to purchase
the home.
   (d)  The amount of home purchase assistance shall be a second
mortgage loan secured by a deed of trust of second priority to the
primary financing provided by the agency or the Department of
Veterans Affairs. The term of the home purchase assistance 
shall   may  not exceed the term of the primary
loan.
   (e)  The amount of home purchase assistance shall be due and
payable at the end of the term, upon the sale of the home, or upon
refinancing. The borrower may refinance the mortgages on the home if
the principal of and accrued interest on the second mortgage loan
securing the home purchase assistance are repaid in full. All
repayments shall be deposited in the fund.