BILL NUMBER: AB 1529 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 13, 2009
INTRODUCED BY Assembly Member Salas
FEBRUARY 27, 2009
An act to amend Section 51345 of add
Section 51341.1 to the Health and Safety Code, relating to
housing.
LEGISLATIVE COUNSEL'S DIGEST
AB 1529, as amended, Salas. Home Purchase Assistance
Program: limitations. Community Stabilization Home
Loan Program: eligible properties.
Existing law establishes the Home Purchase Assistance
Program, administered by authorizes 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
to them .
This bill would make a nonsubstantive change to this provision of
law.
This bill would authorize the agency to continue in existence the
Community Stabilization Home Loan Program, and would authorize the
agency to place specified restrictions on the eligibility of
properties, as specified.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 51341.1 is added to the
Health and Safety Code , to read:
51341.1. (a) The agency may continue use of the Community
Stabilization Home Loan Program, and may place property eligibility
restrictions on the program based on the following criteria,
including, but not limited to, the following:
(1) An eligible property shall meet all agency and Federal
National Mortgage Associations repair, inspection, and Health and
Safety Code requirements.
(2) The sale price of an eligible property shall not exceed the
agency sales price limits established for the county in which the
property is located.
(3) The eligible property shall be vacant.
(4) The eligible property shall be an existing single-family,
one-unit residence, including approved condominium or planned unit
developments. Manufactured housing is not an eligible property.
(b) The agency shall not use ZIP Code, county, or any other
location criteria to exclude otherwise eligible properties from the
Community Stabilization Home Loan Program.
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 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.