BILL NUMBER: SB 224 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 21, 2009
INTRODUCED BY Senator Correa
FEBRUARY 23, 2009
An act to amend Sections 50650.3 and 50650.4 of the Health and
Safety Code, relating to housing.
LEGISLATIVE COUNSEL'S DIGEST
SB 224, as amended, Correa. CalHome Program: homeowner grants.
(1) Existing law establishes the CalHome Program under the
administration of the Department of Housing and Community Development
and authorizes funds appropriated for purposes of the program to be
used to enable low- and very low income households to become or
remain homeowners. The program authorizes the use of grant funds for,
among other things, home rehabilitation. Existing administrative
regulations require installation of an ignition resistant
construction system only when a manufactured home, mobilehome,
multifamily manufactured home, or commercial modular is installed in
designated areas.
This bill would provide that home rehabilitation includes the
installation or retrofit of ignition resistant exterior components on
existing manufactured homes and mobilehomes required pursuant to
specified administrative regulations. The bill would prohibit
rehabilitation funding for these purposes under a specified
circumstance.
(2) Under the CalHome Program, the department provides the program
funds to local public agencies or nonprofit corporations as either
grants or loans to assist homeownership and requires them to meet
prescribed criteria. In administering the program, the department is
authorized to permit local public agencies and nonprofit
corporations to apply their own guidelines with respect to the use of
CalHome funds.
This bill would prohibit a local public agency and a nonprofit
corporation from denying funding or applying different underwriting
guidelines to a housing program or project solely on the basis that
the home is a manufactured home or mobilehome or the home is located
in a mobilehome park or a manufactured housing community.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 50650.3 of the Health and Safety Code is
amended to read:
50650.3. (a) Funds appropriated for purposes of this chapter
shall be used to enable low- and very low income households to become
or remain homeowners. Funds shall be provided by the department to
local public agencies or nonprofit corporations as either of the
following:
(1) Grants for programs that assist individual households.
(2) Loans that assist development projects involving multiple
homeownership units, including single-family subdivisions.
(b) (1) Grant funds may be used for first-time homebuyer
downpayment assistance, home rehabilitation, including the
installation or retrofit of ignition resistant exterior components on
existing manufactured homes and mobilehomes required pursuant to
Article 2.3 (commencing with Section 4200) of Subchapter 2 of Chapter
3 of Division 1 of Title 25 of the California Code of Regulations,
homebuyer counseling, home acquisition and rehabilitation, or
self-help mortgage assistance programs, or for technical assistance
for self-help and shared housing homeownership.
(2) Home rehabilitation funding for the purpose of installing
ignition resistant components on manufactured homes or mobilehomes
pursuant to this subdivision shall not be conditioned upon the
rehabilitation of additional or unrelated home components unless that
rehabilitation is required pursuant to Article 2.3 (commencing with
Section 4200) of Subchapter 2 of Chapter 3 of Division 1 of Title 25
of the California Code of Regulations. In
administering funding for this purpose, local public agencies and
nonprofit corporations may consider the condition and age of the
manufactured home or mobilehome, including whether the home was
constructed on or after January 1, 1976, in accordance with federal
standards and whether the available funds could be more effectively
used to replace the manufactured home or mobilehome.
(c) Loan funds may be used for purchase of real property, site
development, predevelopment, and construction period expenses
incurred on homeownership development projects, and permanent
financing for mutual housing or cooperative developments. Upon
completion of construction, the department may convert project loans
into grants for programs of assistance to individual homeowners.
Financial assistance provided to individual households shall be in
the form of deferred payment loans, repayable upon sale or transfer
of the homes, when they cease to be owner-occupied, or upon the loan
maturity date. Financial assistance may be provided in the form of a
secured forgivable loan to an individual household to rehabilitate,
repair, or replace manufactured housing located in a mobilehome park
and not permanently affixed to a foundation. The loan shall be due
and payable in 20 years, with 10 percent of the original principle to
be forgiven annually for each additional year beyond the 10th year
that the home is owned and continuously occupied by the borrower. Not
more than 10 percent of the funds available for the purposes of this
chapter in a fiscal year shall be used for financial assistance in
the form of secured forgivable loans.
(d) All loan repayments shall be used for activities allowed under
this section, and shall be governed by a reuse plan approved by the
department. Those reuse plans may provide for loan servicing by the
grant recipient or a third-party local government agency or nonprofit
corporation.
SEC. 2. Section 50650.4 of the Health and Safety Code is amended
to read:
50650.4. (a) To be eligible to receive a grant or loan, local
public agencies or nonprofit corporations shall demonstrate
sufficient organizational stability and capacity to carry out the
activity for which they are requesting funds, including, where
applicable, the capacity to manage a portfolio of individual loans
over an extended time period. Capacity may be demonstrated by
substantial successful experience performing similar activities, or
through other means acceptable to the department. In administering
the CalHome program, the department may permit local agencies and
nonprofit corporations to apply their own underwriting guidelines
when evaluating CalHome rehabilitation loan applications, following
prior review and approval of those guidelines by the department. The
local agency or nonprofit corporation shall not subsequently alter
its underwriting guidelines with respect to the use of CalHome funds
without review and approval by the department. In allocating funds,
the department shall utilize a competitive application process, using
weighted evaluation criteria, including, but not limited to, the
extent that the program or project utilizes volunteer or self-help
labor, trains youth and young adults in construction skills, creates
balanced communities, involves community participation, or whether
the program or project contributes toward community revitalization.
To the extent feasible, the application process shall ensure a
reasonable geographic distribution of funds.
(b) In administering department funds received pursuant to
subdivision (a), local public agencies and nonprofit corporations
shall not deny the funding application of, or apply different
underwriting guidelines to, a housing program or project solely on
the basis of either of the following:
(1) The home is a manufactured home or mobilehome, as defined in
Sections 18007 and 18008.
(2) The home is located in a mobilehome park or in a manufactured
housing community, as defined in Sections 18214 and 18210.7
18210.7 and 18214 .