BILL ANALYSIS
AB 2087
Page 1
ASSEMBLY THIRD READING
AB 2087 (Torres)
As Amended April 19, 2010
Majority vote
VETERANS AFFAIRS 9-0 APPROPRIATIONS 12-5
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|Ayes:|Cook, Salas, Block, |Ayes:|Fuentes, Ammiano, |
| |Knight, Gilmore, Lieu, V. | |Bradford, |
| |Manuel Perez, Saldana, | |Charles Calderon, Coto, |
| |Yamada | |Davis, Monning, Ruskin, |
| | | |Skinner, Solorio, |
| | | |Torlakson, Torrico |
| | | | |
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| |Nays:|Conway, Harkey, Miller, |
| | |Nielsen, Norby |
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SUMMARY : Expands the definition of "home," for purposes of the
CalVet Home Loan Program, to include a residence of two to four
units that otherwise meets specified requirements of the federal
Internal Revenue Code.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, expands the types of dwellings that could be
purchased under the CalVet program could increase demand for
loans. The net impact of this change on the Farm and Home
Building Fund of 1943 is unknown, but could exceed $150,000 in
any fiscal year.
COMMENTS : The California Military and Veterans (M&V) Code does
not mirror the Internal Revenue Service Code that allows
veterans to purchase duplexes, triplexes and fourplexes. A
change in the M&V Code would allow CalVet to make these type of
loans to veterans. This will allow Veterans to be able to
purchase this type of housing which may be helpful for extended
family housing. It will also provide dwellings that are
duplexes, triplexes, or fourplexes that would be the best format
for cooperative housing as identified in AB 1330 passed last
year.
AB 2087
Page 2
AB 1330 (Salas), Chapter 524, Statutes of 2009, authorizes the
California Department of Veterans Affairs (CDVA) to set up a
pilot project for the purpose of operating co-op housing
projects for veterans. CDVA is sponsoring this bill to add two-
and four- unit multifamily housing units to the definition of
home because they feel this change is necessary to allow
cooperative housing as a possible use under the CalVET program.
Veterans benefit from a living situation which includes other
veterans. By expanding the definition of home to include two-
and four-unit multifamily units, this bill is intended to permit
veterans to collectively purchase a duplex or four-plex so that
they can live in a supportive environment.
Stated goals. If it is CDVA's goal to enact legislation that
would allow it to finance cooperative housing projects for
veterans, the committee may wish to examine whether adding
affordability language would be in keeping with the intent of AB
1330, which was to provide an affordable housing product to
veterans and their families.
Analysis Prepared by : Eric Worthen / V. A. / (916) 319-3550
FN: 0004664