BILL ANALYSIS �
AB 1224
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 1224 (Veterans Affairs Committee)
As Amended August 14, 2012
2/3 vote. Urgency
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|ASSEMBLY: |75-0 |(January 26, |SENATE: |36-0 |(August 22, |
| | |2012) | | |2012) |
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Original Committee Reference: V. A.
SUMMARY : This bill makes technical changes to allow the Department
of Veterans Affairs (CalVet) to implement a cooperative housing
program.
The Senate amendments :
1) Remove the language concerning the Employment Training
Panel;
2)Authorize CalVet to adopt regulations necessary for cooperative
dwelling units in accordance with the Administrative Procedure
Act;
3)Revise provisions relating to forfeiture and the calculation of
net gain in connection with the sale of a cooperative dwelling
unit; and
4)Eliminate the requirement that the higher amount of down payment
determined by the department to be paid by the purchaser be based
on the creditworthiness of the purchaser and instead provides that
the higher amount be determined based the creditworthiness of the
purchaser and with consideration of his or her military record,
employment record, financial condition, and other similar factors
as determined by CalVet.
5)Contain an urgency clause allowing it to take effect immediately.
AS PASSED BY THE ASSEMBLY , this bill did not contain the language
concerning the cooperative housing program. Instead the bill
concerned the Employment Training Panel.
FISCAL EFFECT : According to the Senate Appropriations Committee,
pursuant to Senate Rule 28.8, there are negligible state costs.
COMMENTS : This bill is at the request of CalVet in order to
implement a program already authorized in statute (AB 1084 (Davis),
AB 1224
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Chapter 377, Statutes of 2011) to expand the supply of housing for
veterans through a cooperative (co-op) housing program. According
to CalVet, these changes are technical in nature but necessary to
allow it to move ahead with the program.
Co-op housing is a form of home ownership in which a corporation
owns residential property, typically a condominium style property.
Owners purchase a share in the corporation which gives them an
exclusive right to occupy a particular unit owned by the
corporation. A shared equity co-op is similar to a regular co-op
except that a portion of the corporation is owned by a non-profit
who "shares" the unit with the buyer/homeowner. Purchase of the
shared equity units is limited to defined low-income buyers,
seniors, families, veterans, etc. When the homeowner sells, a
portion of the equity gain is shared with the non-profit partner and
shared equity co-ops provide low income individuals and families the
opportunity to become homeowners.
Analysis Prepared by : John Spangler / V. A. / (916) 319-3550 FN:
0005240