Health and Safety Code — Part 79 | HSC — United States — California law | Esheria

Health and Safety Code

Part 79 of 87 · provisions 15,601–15,800

This section says the act is to be known as the Health and Safety Code.

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The Legislature states findings supporting a unified, single-payer-style health care financing system for all Californians. The State Department of Health Services is renamed the State Department of Health Care Services, and its retained functions continue with the renamed department. The Director of Health Care Services is appointed by the Governor with Senate confirmation, the director receives a salary set by law, and the Governor may appoint up to two chief deputies on the director’s recommendation. The director has the powers of a department head under the cited Government Code chapter. The Department of Health Services has a Division of Rural Health, and that division must administer specified chapters and sections.

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Provisions of Health and Safety Code

Showing 200 of 17,333

  1. 51332.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 6.7. Multifamily Rental Housing [51325 - 51340] ( Chapter 6.7 added by Stats. 1982, Ch. 155, Sec. 5. ) ## ARTICLE 2. Financing [51330 - 51336] ( Article 2 added by Stats. 1982, Ch. 155, Sec. 5. )

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    The agency may buy or arrange to buy certain construction and mortgage loans, subject to chapter limits, to finance multifamily rental housing.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 6.7. Multifamily Rental Housing [51325 - 51340] ( Chapter 6.7 added by Stats. 1982, Ch. 155, Sec. 5. ) ## ARTICLE 2. Financing [51330 - 51336] ( Article 2 added by Stats. 1982, Ch. 155, Sec. 5. ) ## 51332. Subject only to the limitations prescribed in this chapter, the agency, in addition to any other power conferred by this part, may purchase, or undertake, directly or indirectly through lending institutions, commitments to purchase, construction loans and mortgage loans originated in accordance with a financing agreement with the agency to finance the acquisition, construction, rehabilitation, refinancing, or development of multifamily rental housing and for the provision of capital improvements in connection with, and determined necessary to, such multifamily rental housing. (Amended by Stats. 1996, Ch. 27, Sec. 7. Effective April 8, 1996.)
  2. 51333.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 6.7. Multifamily Rental Housing [51325 - 51340] ( Chapter 6.7 added by Stats. 1982, Ch. 155, Sec. 5. ) ## ARTICLE 2. Financing [51330 - 51336] ( Article 2 added by Stats. 1982, Ch. 155, Sec. 5. )

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    The agency has power to issue bonds for this chapter’s financing purposes.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 6.7. Multifamily Rental Housing [51325 - 51340] ( Chapter 6.7 added by Stats. 1982, Ch. 155, Sec. 5. ) ## ARTICLE 2. Financing [51330 - 51336] ( Article 2 added by Stats. 1982, Ch. 155, Sec. 5. ) ## 51333. For the purposes of this chapter, the agency shall have the power to issue its bonds to defray, in whole or in part, the costs of studies and surveys, insurance premiums, underwriting fees, legal, accounting and marketing services incurred in connection with the issuance and sale of bonds, including bond and mortgage reserve accounts, trustee, custodian, and rating agency fees, and such other costs as are reasonably related to the foregoing. (Added by Stats. 1982, Ch. 155, Sec. 5. Effective April 9, 1982.)
  3. 51334.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 6.7. Multifamily Rental Housing [51325 - 51340] ( Chapter 6.7 added by Stats. 1982, Ch. 155, Sec. 5. ) ## ARTICLE 2. Financing [51330 - 51336] ( Article 2 added by Stats. 1982, Ch. 155, Sec. 5. )

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    The agency may finance commercial property for lease when financing multifamily rental housing, if the listed conditions are met.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 6.7. Multifamily Rental Housing [51325 - 51340] ( Chapter 6.7 added by Stats. 1982, Ch. 155, Sec. 5. ) ## ARTICLE 2. Financing [51330 - 51336] ( Article 2 added by Stats. 1982, Ch. 155, Sec. 5. ) ## 51334. The agency may, in conjunction with the financing of multifamily rental housing pursuant to this chapter, finance the development of commercial property for lease, subject to all of the following conditions: (a) No more than 10 percent of the proceeds of any revenue bonds issued pursuant to this chapter may be used to develop the commercial property for lease. (b) The commercial property developed will be located on the same parcel or on a parcel adjacent to a multifamily rental housing development. (c) As a condition of such financing, any lease payments collected in excess of payments necessary for debt service, operating expenses and any required reserves related to such property, shall be used to reduce rents on units reserved for occupancy by lower-income households and very low income households in a multifamily rental housing development. (Added by Stats. 1982, Ch. 155, Sec. 5. Effective April 9, 1982.)
  4. 51335.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 6.7. Multifamily Rental Housing [51325 - 51340] ( Chapter 6.7 added by Stats. 1982, Ch. 155, Sec. 5. ) ## ARTICLE 2. Financing [51330 - 51336] ( Article 2 added by Stats. 1982, Ch. 155, Sec. 5. )

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    This section sets income-restricted housing requirements for financed multifamily rental developments and gives the agency control over related approvals and processing.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 6.7. Multifamily Rental Housing [51325 - 51340] ( Chapter 6.7 added by Stats. 1982, Ch. 155, Sec. 5. ) ## ARTICLE 2. Financing [51330 - 51336] ( Article 2 added by Stats. 1982, Ch. 155, Sec. 5. ) ## 51335. (a) (1) Not less than 20 percent of the total number of units in a multifamily rental housing development financed, or for which financing has been extended or committed, pursuant to this chapter shall be for occupancy on a priority basis by lower income households. If a multifamily rental housing development is located within a targeted area, as described by Section 143(j) of Title 26 of the United States Code, not less than 15 percent of the total number of units financed, or for which financing has been extended or committed pursuant to this chapter, shall be for occupancy on a priority basis by lower income households. Not less than one-half of the units required for occupancy on a priority basis by lower income households shall be for occupancy on a priority basis for very low income households. However, with approval of the board, the agency may waive the priority requirements for very low income households in designated geographic areas of the state upon a determination that the housing needs of a substantial number of lower income households will not otherwise be met. The rental payments on the units required for occupancy by very low income households paid by the persons occupying the units (excluding any supplemental rental assistance from the state, the federal government, or any other public agency to those persons or on behalf of those units) shall not exceed 30 percent of 50 percent of area median income. If the sponsor elects to establish a base rent for all or part of the units for lower income households and very low income households, the base rents shall be adjusted for household size. In adjusting rents for household size, the agency shall either assume that one person will occupy a studio unit, two persons will occupy a one-bedroom unit, three persons will occupy a two-bedroom unit, four persons will occupy a three-bedroom unit, and five persons will occupy a four-bedroom unit, or commencing September 1, 2016, utilize occupancy assumptions that it determines to be appropriate and commercially reasonable for financing extended pursuant to this chapter. (2) The local agency issuing permits for the development of the multifamily rental housing development shall consider opportunities to contribute to the economic feasibility of the units and to the provision of units for very low income households through concessions and inducements such as the following: (A) Reductions in construction and design requirements. (B) Reductions in setback and square footage requirements and the ratio of vehicular parking spaces that would otherwise be required. (C) Granting density bonuses. (D) Providing expedited processing of permits. (E) Modifying zoning code requirements to allow mixed use zoning. (F) Reducing or eliminating fees and charges for filing and processing applications, petitions, permits, planning services, water and sewer connections, and other fees and charges. (G) Reducing or eliminating requirements relating to monetary exactions, dedications, reservations of land, or construction of public facilities. (H) Other financial incentives or concessions for the multifamily rental housing development which result in identifiable cost reductions, as determined by the agency. The agency shall ensure that the local agency issuing permits for the development considers its responsibilities under this section and makes a good faith effort to enhance the feasibility of the project and to provide housing for lower income households and very low income households. (3) The agency shall not permit a selection criteria to be applied to certificate holders under Section 8 of the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f) that is any more burdensome than the criteria applied to all other prospective tenants. (4) It is the intent of the Legislature that the agency finance projects that assist in meeting the urgent need for providing shelter for lower income households, very low income households, and persons and families of low or moderate income. To that end, the quality of materials and the amenities provided should not be excessive so as to hinder the prospect of achieving the stated goal. The Legislature finds and declares that the design standards utilized by the agency in the past including, but not limited to, the design requirements adopted to govern the new construction program under Section 8 of the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f), are substantially in excess of those required for a decent, healthy, and safe residential unit and intends, by the amendment adding this paragraph to this section by the Statutes of 1985, that the agency finance multifamily rental developments with substantially less costly design requirements than those required by the agency prior to January 1, 1986. (5) It is the intent of the Legislature that the agency finance projects that assist in meeting the urgent need for providing shelter for families. To that end, developments with three- and four-bedroom units affordable to larger families shall have priority over competing developments. (b) As a condition of financing pursuant to this chapter, the housing sponsor shall enter into a regulatory agreement with the agency providing that units reserved for occupancy by lower income households remain available on a priority basis for occupancy until the bonds are retired. The regulatory agreement shall contain a provision making the covenants and conditions of the agreement binding upon successors in interest of the housing sponsor and, notwithstanding any other provision of law, these burdens of the regulatory agreement shall run with the land. The regulatory agreement shall be recorded in the office of the county recorder of the county in which the multifamily rental housing development is located. The regulatory agreement shall be recorded in the grantor-grantee index to the name of the property owner as grantor and to the name of the agency as grantee. (c) The agency shall ensure that units occupied by lower income households are of comparable quality and offer a range of sizes and number of bedrooms comparable to those units which are available to other tenants. (d) (1) The agency shall give priority to processing construction loans and mortgage loans or may take other steps such as reducing loan fees for multifamily rental housing developments which incorporate innovative and energy-efficient techniques which reduce development or operating costs and which have the lowest feasible per unit cost, as determined by the agency, based on efficiency of design, the elimination of improvements that are not required by applicable building standards, or a reduction in the amount of local fees imposed on the development. (2) The agency shall give equal priority to processing construction loans and mortgage loans or may take other steps such as reducing loan fees on multifamily rental housing developments which do any of the following: (A) Utilize federal housing or development assistance. (B) Utilize redevelopment funds or other local financial assistance, including, but not limited to, contributions of land, or for which local fees have been reduced. (C) Are sponsored by a nonprofit housing organization. (D) Provide a significant number of housing units, as determined by the agency, as part of a coordinated jobs and housing plan adopted by a local government. (E) Exceed a ratio whereby 20 percent of the units are reserved for occupancy by lower income households, or whereby 10 percent of the units are reserved for occupancy by very low income households, or which provide units for lower income households or very low income households for the longest period of time beyond the minimum number of years. (e) (1) New and existing rental housing developments may be syndicated after prior written approval of the agency. The agency shall grant that approval only after the agency determines that the terms and conditions of the syndication comply with this section. (2) The terms and conditions of the syndication shall not reduce or limit any of the requirements of this chapter or regulations adopted or documents executed pursuant to this chapter. No requirements of the state shall be subordinated to the syndication agreement. A syndication shall not result in the provision of fewer assisted units, or the reduction of any benefits or services, than were in existence prior to the syndication agreement. (Amended by Stats. 2016, Ch. 552, Sec. 2. (AB 723) Effective September 24, 2016.)
  5. 51336.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 6.7. Multifamily Rental Housing [51325 - 51340] ( Chapter 6.7 added by Stats. 1982, Ch. 155, Sec. 5. ) ## ARTICLE 2. Financing [51330 - 51336] ( Article 2 added by Stats. 1982, Ch. 155, Sec. 5. )

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    For this article, “housing sponsor” means a person as defined in Section 50074.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 6.7. Multifamily Rental Housing [51325 - 51340] ( Chapter 6.7 added by Stats. 1982, Ch. 155, Sec. 5. ) ## ARTICLE 2. Financing [51330 - 51336] ( Article 2 added by Stats. 1982, Ch. 155, Sec. 5. ) ## 51336. For purposes of this article, “housing sponsor” means a person as defined in Section 50074. (Added by Stats. 1982, Ch. 155, Sec. 5. Effective April 9, 1982.)
  6. 51340.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 6.7. Multifamily Rental Housing [51325 - 51340] ( Chapter 6.7 added by Stats. 1982, Ch. 155, Sec. 5. ) ## ARTICLE 3. State Assistance [51340- 51340.] ( Article 3 added by Stats. 1982, Ch. 155, Sec. 5. )

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    This chapter provides an alternative method for financing construction loans and mortgage loans for multifamily rental housing.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 6.7. Multifamily Rental Housing [51325 - 51340] ( Chapter 6.7 added by Stats. 1982, Ch. 155, Sec. 5. ) ## ARTICLE 3. State Assistance [51340- 51340.] ( Article 3 added by Stats. 1982, Ch. 155, Sec. 5. ) ## 51340. This chapter constitutes an alternative method to finance construction loans and mortgage loans for multifamily rental housing pursuant to the provisions of this chapter. (Amended by Stats. 2016, Ch. 552, Sec. 3. (AB 723) Effective September 24, 2016.)
  7. 51341.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 6.8. Home Purchase Assistance Program [51341 - 51349] ( Chapter 6.8 added by Stats. 1988, Ch. 30, Sec. 6. )

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    The Legislature states that California needs more affordable mortgage financing and homeownership assistance for low- and moderate-income residents.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 6.8. Home Purchase Assistance Program [51341 - 51349] ( Chapter 6.8 added by Stats. 1988, Ch. 30, Sec. 6. ) ## 51341. The Legislature finds and declares that: (a) There is a continuing and urgent need to provide affordable mortgage financing to meet the increasingly unfulfilled housing needs of citizens of this state. (b) There is a need to develop financial mechanisms to make homes affordable to low- and moderate-income buyers who intend to occupy the homes as their primary residences. (c) The high cost of housing impedes the ability of California employers to compete in the national marketplace for employees. (d) Affordable housing enhances the quality of life for California residents and provides fuel for the state’s economic engine. (e) Housing is a critical component of the California economy, both as an income producing sector and a principal factor in economic development. (f) California’s housing crisis severely impacts families struggling to provide safe, stable homes for their children to grow and learn and the workers who are the backbone of many of the state’s most important industries. (g) The percentage of Californians able to purchase their own homes continues to decline. (h) There is a need to streamline the agency’s homeownership assistance programs to make them more efficient and effective. (i) Therefore, this chapter is enacted to make home purchases more affordable to low- and moderate-income Californians seeking the opportunity to own and occupy their own homes. (Amended by Stats. 2016, Ch. 32, Sec. 74. (SB 837) Effective June 27, 2016.)
  8. 51342.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 6.8. Home Purchase Assistance Program [51341 - 51349] ( Chapter 6.8 added by Stats. 1988, Ch. 30, Sec. 6. )

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    This section continues the Home Purchase Assistance Fund in the State Treasury and directs that certain money related to the chapter’s programs be handled within that fund.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 6.8. Home Purchase Assistance Program [51341 - 51349] ( Chapter 6.8 added by Stats. 1988, Ch. 30, Sec. 6. ) ## 51342. (a) There is hereby continued in the State Treasury a Home Purchase Assistance Fund. “Fund,” as used in this chapter, means the Home Purchase Assistance Fund. Notwithstanding Section 13340 of the Government Code, all moneys in the fund are continuously appropriated to the agency, without regard to fiscal years, for expenditure pursuant to this chapter and defraying administrative costs of the agency. Notwithstanding Section 16305.7 of the Government Code, any interest earned or other increment derived from investments made from moneys in the fund shall be deposited in the fund. (b) On and after July 1, 2016, all of the following shall apply: (1) Any unobligated amounts remaining in any fund established for the purposes of Chapter 9 (commencing with Section 51450) or Chapter 11 (commencing with Section 51500), including, but not limited to, the California Homebuyer’s Downpayment Assistance Program, the School Facility Fee Program, and the Extra Credit Teacher Program, shall be transferred to the Home Purchase Assistance Fund for expenditure by the agency for the purposes of this chapter. (2) The agency shall have no obligation to continue administering loan programs authorized by Chapter 9 (commencing with Section 51450) or Chapter 11 (commencing with Section 51500). (3) Notwithstanding Section 16305.7 of the Government Code, any interest earned, or other increment derived, from investments made from moneys transferred to the fund pursuant to paragraph (1), and any loan receivables, repayments made, or other sums accruing to the agency pursuant to Chapter 9 (commencing with Section 51450) or Chapter 11 (commencing with Section 51500) shall be deposited into the fund for expenditure by the agency for the purposes of this chapter. (Added by renumbering Section 51344 by Stats. 2016, Ch. 32, Sec. 76. (SB 837) Effective June 27, 2016.)
  9. 51343.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 6.8. Home Purchase Assistance Program [51341 - 51349] ( Chapter 6.8 added by Stats. 1988, Ch. 30, Sec. 6. )

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    The agency must run a home purchase assistance program and give priority to assistance for first-time homebuyers.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 6.8. Home Purchase Assistance Program [51341 - 51349] ( Chapter 6.8 added by Stats. 1988, Ch. 30, Sec. 6. ) ## 51343. (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 low- and moderate-income homebuyers to qualify for the purchase of owner-occupied homes. The agency shall make assistance to first-time homebuyers a priority use of these funds. (b) Homeownership assistance under this chapter may be provided for any purposes authorized under Section 51402, including, but not limited to, all of the following: (1) An interest rate subsidy to reduce the interest rate. (2) A deferred-payment, low-interest, subordinate mortgage loan, including downpayment assistance, closing cost assistance, or both, to make financing affordable to low- and moderate-income homebuyers. (3) Buying down the cost of mortgage insurance. (c) The amount of home purchase assistance shall be available only in conjunction with first mortgage loan financing provided by the agency or the Department of Veterans Affairs. (d) The term of the home purchase assistance shall not exceed the term of the primary loan. (e) Assistance under this chapter is available only for owner-occupied residential structures. (f) (1) The agency may, in its discretion, permit the lien of the downpayment assistance loan to be subordinated to refinancing if it determines that one of the following applies: (A) The borrower has demonstrated hardship and subordination is required to avoid foreclosure. (B) The borrower has acquired subordinate financing to build an accessory dwelling on the property. (C) The borrower has acquired subordinate financing to make the property compliant with the federal Americans with Disabilities Act of 1990 (Public Law 101-336), facilitate rehabilitation needed to allow the owner to age in place, or both. (D) The new loan meets the agency’s underwriting requirements. (2) The agency may permit subordination on those terms and conditions as it determines are reasonable. (3) The amount of home purchase assistance shall not be due and payable upon the sale of the home if the first mortgage loan is insured by the Federal Housing Administration (FHA) or if the first mortgage loan is, or has been, transferred to the FHA, or if the requirement is otherwise contrary to the regulations of the United States Department of Housing and Urban Development governing FHA insured first mortgage loans. (g) All repayments shall be deposited in the fund for ongoing use in this downpayment assistance program. (Added by renumbering Section 51345 by Stats. 2016, Ch. 32, Sec. 77. (SB 837) Effective June 27, 2016.)
  10. 51346.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 6.8. Home Purchase Assistance Program [51341 - 51349] ( Chapter 6.8 added by Stats. 1988, Ch. 30, Sec. 6. )

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    The agency may enter a contract with the Department of Veterans Affairs to provide home purchase assistance to first-time veteran homebuyers.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 6.8. Home Purchase Assistance Program [51341 - 51349] ( Chapter 6.8 added by Stats. 1988, Ch. 30, Sec. 6. ) ## 51346. The agency may execute a contract with the Department of Veterans Affairs to provide home purchase assistance to first-time veteran homebuyers. (Added by Stats. 1988, Ch. 30, Sec. 6. Effective March 14, 1988.)
  11. 51349.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 6.8. Home Purchase Assistance Program [51341 - 51349] ( Chapter 6.8 added by Stats. 1988, Ch. 30, Sec. 6. )

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    The agency has the powers given by this chapter and related provisions, and it may create its own home purchase assistance programs or products under specified conditions.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 6.8. Home Purchase Assistance Program [51341 - 51349] ( Chapter 6.8 added by Stats. 1988, Ch. 30, Sec. 6. ) ## 51349. (a) The agency shall have all the powers conferred upon it by this part and Part 4 (commencing with Section 51600) in administering this chapter. (b) The authority provided by this section shall be conferred upon the Department of Veterans Affairs by any contract executed pursuant to Section 51346, with respect to the assistance being provided pursuant to the contract. (c) Notwithstanding any other law, the agency, pursuant to the objectives specified in Section 50952, may, with its own funds or from funds derived from other sources, create its own home purchase assistance programs, home purchase assistance products, or both, on such terms and conditions as the agency deems prudent. Nothing in this chapter shall be deemed to prohibit the agency from exercising its discretion pursuant to this subdivision. (Amended by Stats. 2016, Ch. 32, Sec. 80. (SB 837) Effective June 27, 2016.)
  12. 51350.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. )

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    The agency may issue bonds, but bond sales are coordinated with the Treasurer and the total outstanding principal is capped, subject to several stated increases and refunding exceptions.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. ) ## 51350. (a) The agency may, from time to time, issue its bonds in the principal amount that the agency determines necessary to provide sufficient funds for financing housing developments and other residential structures, the payment of interest on bonds of the agency, the establishment of reserves to secure the bonds, the payment of other expenditures of the agency incident to, and necessary or convenient to, issuance of the bonds, and for the other purposes provided by Sections 51065.5 and 51365. (b) (1) Sale of the bonds of the agency shall be coordinated by the Treasurer. To obtain a date for the sale of bonds, the agency shall inform the Treasurer of the amount of the proposed issue. Upon that notification, the Treasurer shall provide three 10-day periods, within the 90 days next following, when the bonds can be sold. The agency may choose any date during the suggested periods or any other date to which the agency and the Treasurer have mutually agreed. The Treasurer shall sell the bonds on the date chosen according to terms approved by the agency. (2) The agency shall exercise its powers with due regard for the right of the holders of bonds of the agency at any time outstanding, and nothing in, or done pursuant to, this section shall in any way limit, restrict, or alter the obligation or powers of the agency or any member, officer, or representative of the agency or the Treasurer to carry out and perform in every detail each and every covenant, agreement, or contract at any time made or entered into on behalf of the agency with respect to its bonds or its benefits, or the security of the holders of the bonds. (c) Except as provided in subdivisions (d) to (h), inclusive, the aggregate principal amount of bonds that may be outstanding at any time pursuant to this part shall not exceed seven hundred fifty million dollars ($750,000,000), exclusive of the principal indebtedness of bonds issued to refund or renew previously issued bonds of the agency, to the extent of the outstanding principal indebtedness of the previously issued bonds and any redemption premium thereon and any interest accrued or to accrue to the date of redemption of the bonds, during the period in which both the previously issued bonds and the refunding or renewal bonds are outstanding. (d) Effective January 1, 1980, the aggregate principal amount of bonds that may be outstanding at any time pursuant to this part shall be increased by seven hundred fifty million dollars ($750,000,000), exclusive of (1) bonds previously authorized pursuant to subdivision (c), and (2) the principal indebtedness of bonds issued to refund or renew bonds of the agency previously issued under the authority of this subdivision, but only to the extent of the outstanding principal indebtedness of the previously issued bonds and any redemption premium thereon and any interest accrued or to accrue to the date of redemption of the bonds, during the period in which both the previously issued bonds and the refunding or renewal bonds are outstanding. (e) Effective January 1, 1983, the aggregate principal amount of bonds that may be outstanding at any time pursuant to this part shall be additionally increased by three hundred fifty million dollars ($350,000,000) exclusive of (1) bonds previously authorized pursuant to subdivision (c) or (d), and (2) the principal indebtedness of bonds issued to refund or renew bonds of the agency previously issued under the authority of this subdivision, but only to the extent of the outstanding principal indebtedness of the previously issued bonds and any redemption premium thereon and any interest accrued or to accrue to the date of the redemption of the bonds, during the period in which both the previously issued bonds and the refunding or renewal bonds are outstanding. (f) Effective January 1, 1984, the aggregate principal amount of bonds that may be outstanding at any time pursuant to this part shall be additionally increased by five hundred million dollars ($500,000,000), exclusive of (1) bonds previously authorized pursuant to any of subdivisions (c) to (e), inclusive, and (2) the principal indebtedness of bonds issued to refund or renew bonds of the agency previously issued under the authority of this subdivision, but only to the extent of the outstanding principal indebtedness of the previously issued bonds and any redemption premium thereon and any interest accrued or to accrue to the date of the redemption of the bonds, during the period in which both the previously issued bonds and the refunding or renewal bonds are outstanding. (g) On the effective date of the amendments to this section enacted by the Statutes of 1985, the aggregate principal amount of bonds that may be outstanding at any time pursuant to this part shall be additionally increased by six hundred million dollars ($600,000,000), exclusive of (1) bonds previously authorized pursuant to any of subdivisions (c) to (f), inclusive, and (2) the principal indebtedness of bonds issued to refund or renew bonds of the agency previously issued under the authority of this subdivision, but only to the extent of the outstanding principal indebtedness of the previously issued bonds and any redemption premium thereon and any interest accrued or to accrue to the date of the redemption of the bonds, during the period in which both the previously issued bonds and the refunding or renewal bonds are outstanding. (h) On the effective date of the amendments to this section enacted by the Statutes of 1985, the aggregate principal amount of bonds that may be outstanding at any time pursuant to this part shall be additionally increased by six hundred million dollars ($600,000,000), exclusive of (1) bonds previously authorized pursuant to any of subdivisions (c) to (g), inclusive, and (2) the principal indebtedness of bonds issued to refund or renew bonds of the agency previously issued under the authority of this subdivision, but only to the extent of the outstanding principal indebtedness of the previously issued bonds and any redemption premium thereon and any interest accrued or to accrue to the date of the redemption of the bonds, during the period in which both the previously issued bonds and the refunding or renewal bonds are outstanding. (i) Effective September 4, 1990, the aggregate principal amount of bonds that may be outstanding at any one time pursuant to this part shall be additionally increased by nine hundred million dollars ($900,000,000), exclusive of the following: (1) bonds previously authorized pursuant to any of subdivisions (c) to (h), inclusive, and (2) the principal indebtedness of bonds issued to refund or renew bonds of the agency previously issued under the authority of this subdivision, but only to the extent of the outstanding principal indebtedness of the previously issued bonds and any redemption premium thereon and any interest accrued or to accrue to the date of the redemption of the bonds, during the period in which both the previously issued bonds and the refunding or renewal bonds are outstanding. (j) On the effective date of the amendments to this section which added this subdivision, the aggregate principal amount of bonds that may be outstanding at any one time pursuant to this part shall be additionally increased by nine hundred million dollars ($900,000,000), exclusive of the following: (1) bonds previously authorized pursuant to any of subdivisions (c) to (i), inclusive, and (2) the principal indebtedness of bonds issued to refund or renew bonds of the agency previously issued under the authority of this subdivision, but only to the extent of the outstanding principal indebtedness of the previously issued bonds and any redemption premium thereon and any interest accrued or to accrue to the date of the redemption of the bonds, during the period in which both the previously issued bonds and the refunding or renewal bonds are outstanding. (k) Effective January 1, 1998, the aggregate principal amount of bonds that may be outstanding at any one time pursuant to this part shall be additionally increased by one billion four hundred million dollars ($1,400,000,000), exclusive of: (1) bonds previously authorized pursuant to any of subdivisions (c) to (j), inclusive, and (2) the principal indebtedness of bonds issued to refund or renew bonds of the agency previously issued under the authority of this subdivision, but only to the extent of the outstanding principal indebtedness of the previously issued bonds and any redemption premium thereon and any interest accrued or to accrue to the date of the redemption of the bonds, during the period in which both the previously issued bonds and the refunding or renewal bonds are outstanding. (l) Effective January 1, 2000, the aggregate principal amount of bonds that may be outstanding at any one time pursuant to this part shall be additionally increased by two billion two hundred million dollars ($2,200,000,000), exclusive of: (1) bonds previously authorized pursuant to any of subdivisions (c) to (k), inclusive, and (2) the principal indebtedness of bonds issued to refund or renew bonds of the agency previously issued under the authority of this subdivision, but only to the extent of the outstanding principal indebtedness of the previously issued bonds and any redemption premium thereon and any interest accrued or to accrue to the date of the redemption of the bonds, during the period in which both the previously issued bonds and the refunding or renewal bonds are outstanding. (m) Effective January 1, 2002, the aggregate principal amount of bonds that may be outstanding at any one time pursuant to this part shall be increased by two billion two hundred million dollars ($2,200,000,000), exclusive of (1) bonds previously authorized pursuant to any of subdivisions (c) to (l), inclusive, and (2) the principal indebtedness of bonds issued to refund or renew bonds of the agency previously issued under the authority of this subdivision, but only to the extent of the outstanding principal indebtedness of the previously issued bonds and any redemption premium thereon and any interest accrued or to accrue to the date of the redemption of the bonds, during the period in which both the previously issued bonds and the refunding or renewal bonds are outstanding. (n) Effective January 1, 2008, the aggregate principal amount of bonds that may be outstanding at any one time pursuant to this part shall be increased by two billion dollars ($2,000,000,000), exclusive of (1) bonds previously authorized pursuant to any of subdivisions (c) to (m), inclusive, and (2) the principal indebtedness of bonds issued to refund or renew bonds of the agency previously issued under the authority of this subdivision, but only to the extent of the outstanding principal indebtedness of the previously issued bonds and any redemption premium thereon and any interest accrued or to accrue to the date of the redemption of the bonds, during the period in which both the previously issued bonds and the refunding or renewal bonds are outstanding. (Amended by Stats. 2007, Ch. 274, Sec. 1. Effective January 1, 2008.)
  13. 51350.5.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. )

    Verify source ↗

    Section 51350.5 exempts certain agency bonds from the bond limit in Section 51350.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. ) ## 51350.5. The limitation set forth in Section 51350 on the amount of the agency’s bonds which may be concurrently outstanding, including any changes, expansions of, or additions to, such limitations, shall not apply to (a) bonds issued to finance construction of rental housing developments assisted pursuant to Chapter 9 (commencing with Section 50735) of Part 2 of this division, or (b) bonds issued to refund or renew such bonds, to the extent of the outstanding principal indebtedness of the previously issued bonds and any redemption premium thereon, and any interest accrued or to accrue to the date of redemption of such bonds. Bonds specified in this section shall not be included or considered when applying the limitation on amount of bonds specified in subdivision (c) of Section 51350 or in any other provisions of law which may be enacted to provide additional bonding authority to the agency and which certain dollar limitations respecting the amount of bonds issued or outstanding. (Added by Stats. 1979, Ch. 1043.)
  14. 51352.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. )

    Verify source ↗

    Unless the agency’s resolution says otherwise, every issue of its bonds must be a general obligation of the agency and payable from any agency assets, revenues, or money, except where particular bonds are already secured by specific pledged assets, revenues, or money.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. ) ## 51352. Except as may otherwise be expressly provided by resolution of the agency, every issue of its bonds shall be general obligations of the agency payable out of any assets, revenues, or moneys of the agency, subject only to any agreements with the holders of particular bonds pledging any particular assets, revenues, or moneys. (Amended by Stats. 1987, Ch. 1034, Sec. 44.)
  15. 51353.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. )

    Verify source ↗

    The agency authorizes its bonds by resolution, and the State Treasurer sells them under the agency’s set terms. Bonds may be serial, term, or both, but none may mature more than 50 years after issuance.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. ) ## 51353. The bonds shall be authorized by resolution or resolutions of the agency, shall be in such form, shall bear such date or dates, and shall mature at such time or times as such resolution or resolutions may provide, except that no bond shall mature more than 50 years from the date of its issue. The bonds may be issued as serial bonds or as term bonds, or as a combination thereof, and, notwithstanding any other provision of law, the amount of principal of, or interest on, bonds maturing at each date of maturity need not be equal. The bonds shall bear interest at such rate or rates, be in such denominations, be in such form, either coupon or registered, carry such registration privileges, be executed in such manner, be payable in such medium of payment at such place or places within or without the state, be subject to such terms of redemption and contain such terms and conditions as such resolution or resolutions may provide. The bonds of the agency shall be sold at public or private sale by the State Treasurer at, above, or below the par value, on such terms and conditions and for such consideration in such medium of payment as the agency shall determine by resolution prior to the sale. (Added by Stats. 1977, Ch. 610.)
  16. 51354.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. )

    Verify source ↗

    The agency may issue bonds and related bond obligations, including refunding and renewal bonds.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. ) ## 51354. The agency may, from time to time, issue (1) bonds to renew bonds and (2) other bond obligations to pay bonds including the interest thereon, and, whenever it deems refunding expedient, to refund any bonds by the issuance of new bonds, whether the bonds to be refunded have or have not matured and to issue bonds partly to refund bonds then outstanding and partly for any of its purposes. (Added by Stats. 1977, Ch. 610.)
  17. 51355.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. )

    Verify source ↗

    Bond resolutions may include terms that become part of the contract with bondholders.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. ) ## 51355. Any resolution or resolutions authorizing any bonds or issue therefor may contain provisions, which shall be a part of the contract or contracts with the holders thereof, as to: (a) Pledging all or any part of the revenues of the agency to secure the payment of the bonds or any issue thereof, subject to such agreements with bondholders as may then exist. (b) Pledging all or any part of the assets of the agency, including mortgages and obligations securing the same, to secure the payment of the bonds or any issue thereof, subject to such agreements with bondholders as may then exist. (c) The use and disposition of the gross income from mortgages owned by the agency and payment of principal of mortgages owned by the agency. (d) The setting aside of reserves or sinking funds and the regulation and disposition thereof. (e) Limitations on the purposes to which the proceeds of a sale of bonds may be applied and pledging such proceeds to secure the payment of the bonds or of any issue thereof. (f) Limitations on the issuance of additional bonds, the terms upon which additional notes or bonds may be issued and secured, and the refunding of outstanding bonds. (g) The procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent thereto, and the manner in which such consent may be given. (h) Limitations on the amount of moneys to be expended by the agency for operating expenses of the agency. (i) Vesting in a trustee or trustees such property, rights, powers, and duties in trust as the agency may determine, and providing for or limiting or abrogating the right of the bondholders to appoint a trustee or limiting the rights, powers, and duties of such trustee. (j) Defining the acts or omissions to act which shall constitute a default in the obligations and duties of the agency to the holders of the bonds and providing for the rights and remedies of the holders of the bonds in the event of such default. However, such rights and remedies shall not be inconsistent with the general laws of the state and the other provisions of this division. (k) Any other matters of like or different character, which in any way affect the security, protection, or investment return of the holders of the bonds. (Added by Stats. 1977, Ch. 610.)
  18. 51356.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. )

    Verify source ↗

    Resolutions authorizing bonds must state how loan revenues will be used to secure the bonds and how much may be used for other purposes.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. ) ## 51356. Any resolution or resolutions authorizing any bonds or issue thereof shall specify the extent to which revenues resulting from loans made with proceeds of the bonds so authorized are to be used to secure the bonds and the extent to which such revenues may be used for other purposes. (Added by Stats. 1977, Ch. 610.)
  19. 51357.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. )

    Verify source ↗

    Pledges made by the agency are valid and binding when made, and pledged assets are immediately subject to the lien without delivery, further action, or recording.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. ) ## 51357. Any pledge made by the agency shall be valid and binding from the time when the pledge is made. The revenues, moneys, or property so pledged and thereafter received by the agency shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the agency, irrespective of whether such parties have notice thereof. Neither the resolution nor any other instrument by which a pledge is created need be recorded. (Added by Stats. 1977, Ch. 610.)
  20. 51358.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. )

    Verify source ↗

    The agency must select bond underwriters and consultants.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. ) ## 51358. Bond underwriters and consultants shall be selected by the agency. (Added by Stats. 1977, Ch. 610.)
  21. 51359.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. )

    Verify source ↗

    People who sign or issue these notes or bonds are not personally liable or accountable just because of the issuance.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. ) ## 51359. The members of the board, the executive director of the agency, or any other person executing such notes or bonds shall not be subject to any personal liability or accountability by reason of the issuance thereof. (Amended by Stats. 1979, Ch. 1115.)
  22. 51361.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. )

    Verify source ↗

    The Treasurer acts as trustee for the agency and bondholders if the Treasurer elects to do so in writing before the board approves the bond resolution.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. ) ## 51361. The Treasurer shall act as trustee for the agency and the holders of its bonds, provided the Treasurer elects to serve as trustee with respect to a particular issuance of bonds by notifying the agency of this election in writing at or prior to the board meeting at which the board approves a resolution authorizing the issuance and sale of the bonds. Any bonds issued under this division may be secured by a trust agreement, indenture, or resolultion, by and between the agency and a trustee or trustees, which may be the Treasurer or any trust company or bank having the powers of a trust company within or without the state. Notwithstanding other provisions in this division, references to the Treasurer as trustee shall be deemed to refer to either the Treasurer or the duly empowered bank or trust company trustee as the case may be. The trust agreement, indenture, or the resolution providing for the issuance of the bonds may pledge or assign revenues to be received or proceeds of any contract or contracts pledged. Any resolution authorizing any bonds or issue thereof shall prescribe the duties of the Treasurer with respect to the issuance, authentication, sale, and delivery of the bonds, the payment of principal and interest thereof, and the redemption of the bonds. Notwithstanding any other provision of law, the Treasurer shall not be deemed to have a conflict of interest by reason of acting as trustee pursuant to this division. The agency may provide by a resolution for the deposit of all revenues pledged for the security of the bonds in one or more separate accounts in the California Housing Finance Fund under the control of the Treasurer as trustee. The money in the accounts shall be disbursed only as provided in the resolution. The trustee shall act on behalf of the holders of the agency’s bonds, or any stated percentage thereof, for the purpose of exercising and prosecuting on behalf of the holders in the manner and under conditions provided in the resolution authorizing the bonds. (Amended by Stats. 1987, Ch. 904, Sec. 3.5. Effective September 21, 1987.)
  23. 51362.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. )

    Verify source ↗

    The State Treasurer or a trustee for bondholders has the powers needed to carry out this part and protect bondholders’ rights. The Superior Court of Sacramento County has jurisdiction over related lawsuits, and Sacramento County is the proper venue.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. ) ## 51362. The State Treasurer or other trustee acting on behalf of bondholders shall have and possess all the powers necessary or convenient for the exercise of any functions specifically set forth in this part or incident to the general representation of bondholders in the enforcement and protection of their rights. The Superior Court of Sacramento County shall have jurisdiction of, and Sacramento County shall be the appropriate venue for, any suit, action, or proceedings by the trustee on behalf of bondholders. (Added by Stats. 1977, Ch. 610.)
  24. 51363.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. )

    Verify source ↗

    The bonds, and related security instruments, are treated as negotiable instruments under the California Uniform Commercial Code, except as the bond terms provide for registration.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. ) ## 51363. Whether or not the bonds are of such form and character as to be negotiable instruments under, or subject to, the terms of the California Uniform Commercial Code, the bonds and any security instruments underlying the bonds are hereby made negotiable instruments within the meaning of, and for all the purposes of, such code, subject only to the provisions of the bonds for registration. (Added by Stats. 1977, Ch. 610.)
  25. 51364.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. )

    Verify source ↗

    If agency board members or officers stop serving before bond delivery, their signatures on the bonds or coupons still count as valid.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. ) ## 51364. In the event any of the board members or officers of the agency whose signatures appear on any bonds or coupons shall cease to be such board members or officers before the delivery of such bonds, such signatures shall, nevertheless, be valid and sufficient for all purposes, the same as if such board members or officers had remained in office until such delivery. (Added by Stats. 1977, Ch. 610.)
  26. 51365.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. )

    Verify source ↗

    The agency may use bond or security proceeds, and any investment earnings on them, for its purposes.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. ) ## 51365. Proceeds derived from the issuance of bonds or securities and any interest or other increment derived from the investment thereof may be used for any of the purposes of the agency, including, but not limited to, creation of reserves, repayment of the loan from the state made pursuant to the act enacting this division, operating costs, other expenses, and subsidy programs. (Added by Stats. 1977, Ch. 610.)
  27. 51366.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. )

    Verify source ↗

    The agency may create bond reserve funds, but money in them must be used only for specified bond-related purposes and generally cannot be withdrawn below the minimum reserve requirement.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. ) ## 51366. The agency, in its discretion and pursuant to agreements with bondholders, may create and establish one or more special accounts in the California Housing Finance Fund, which shall be known as “bond reserve funds,” and shall pay into each such bond reserve fund (1) any moneys appropriated and made available by the Legislature for the purpose of such fund, (2) any proceeds of sale of bonds to the extent provided in the resolution or resolutions of the agency authorizing the issuance thereof, and (3) any other moneys which the agency may make available for the purpose of such bond reserve fund from any other source or sources. All moneys held in any bond reserve fund, except as otherwise provided in this part, shall be used, as required, solely for the payment of the principal of bonds secured in whole or in part by such fund, for the sinking fund payments authorized by this part with respect to such bonds, for the purchase or redemption of such bonds, for the payment of interest on such bonds, or for the payment of any redemption premium required to be paid when such bonds are redeemed prior to maturity. However, moneys in a bond reserve fund shall not be withdrawn therefrom at any time in such amount as would reduce the amount of the bond reserve fund to less than the minimum bond reserve fund requirement established for such fund, as provided in Section 51367, except for the purpose of making, with respect to bonds secured in whole or in part by such fund, payment when due of principal, interest, redemption premiums, and the sinking fund payments, as provided in this part, for the payment of which other moneys of the agency are not available. Any income or interest earned by, or increment to, any bond reserve fund due to the investment thereof may be transferred by the agency to other funds or accounts of the agency to the extent it does not reduce the amount of the bond reserve fund below the minimum bond reserve fund requirement for such fund. In computing the amount of bond reserve funds for purposes of this section, securities in which all or a portion of such funds are invested shall be valued at par, if purchased at par, and shall be valued at amortized value, as such term is defined by resolution of the agency, if purchased at other than par. (Added by Stats. 1977, Ch. 610.)
  28. 51367.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. )

    Verify source ↗

    The agency must not issue bonds unless the related bond reserve fund will meet the minimum reserve requirement, or the agency deposits enough money at issuance to make it meet that requirement.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. ) ## 51367. The agency shall not at any time issue bonds if, upon issuance of the bonds, the amount in any bond reserve fund, established pursuant to Section 51366 to secure such bonds or any previous issuance of bonds so secured by such bond reserve fund, will be less than the minimum bond reserve fund requirement for such fund, unless the agency at the time of issuance of such bonds, shall deposit in such fund from the proceeds of the bonds to be issued, or from other sources, an amount which, together with the amount then in such fund, will not be less than the minimum bond reserve fund requirement for such fund. For the purposes of this chapter, the term “minimum bond reserve fund requirement” shall mean, as of any particular date of computation, the amount, as provided in the resolution or resolutions of the agency authorizing the bonds with respect to which such bond reserve fund is created, that is established as a reserve for current or future obligations to the bondholders. (Added by Stats. 1977, Ch. 610.)
  29. 51368.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. )

    Verify source ↗

    This section creates a Supplementary Bond Security Account and lets the agency create and use supplementary reserve accounts for bond security and related purposes.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. ) ## 51368. (a) The Supplementary Bond Security Account is hereby created in the California Housing Finance Fund. Moneys in the account may be transferred into separate, individual accounts in the fund which shall be known as supplementary reserve accounts, but the amounts appropriated to the Supplementary Bond Security Account shall be utilized to secure issuances of bonds as deemed necessary by the agency and may also be used as provided in subdivision (d). Upon issuance of any bonds, the agency may create a supplementary reserve account to secure payment of the principal of, interest, redemption-premium, and sinking fund payments on those bonds. (b) When all obligations secured by all supplementary reserve accounts are retired the Supplementary Bond Security Account shall be dissolved and all moneys therein shall be used first for repayment to the General Fund in the State Treasury of amounts advanced to the Supplementary Bond Security Account from the General Fund, less any amount previously repaid on account of the advances. Remaining funds shall be paid into the general accounts of the housing finance agency unless otherwise obligated. (c) When the amount in a bond reserve fund falls below the minimum bond reserve fund requirement for that fund and available revenues of the agency pledged to the prescribed minimum bond reserve fund requirement are insufficient to restore the fund, the agency shall transfer to the bond reserve fund, from the supplementary bond reserve account securing the bonds, the amount necessary to restore the fund to the minimum bond reserve fund requirement. Moneys in supplementary reserve accounts may be used to directly pay the interest, principal and sinking fund payments on the bonds as provided by bond resolution. (d) Supplementary reserve accounts may also be used to insure mortgages to protect the value of the housing developments, residential structures, or other housing financed under this division that serves as real property security, in any manner permitted by the agency. (e) “Bonds” as used in this section, includes taxable securities issued pursuant to Chapter 8 (commencing with Section 51400). (Amended (as added by Stats. 1981, Ch. 997, Sec. 2.5) by Stats. 1987, Ch. 904, Sec. 5. Effective September 21, 1987.)
  30. 51369.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. )

    Verify source ↗

    The agency must create and establish additional accounts in the California Housing Finance Fund when needed or desirable for its purposes.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. ) ## 51369. The agency shall create and establish such other accounts in the California Housing Finance Fund as may be necessary or desirable for its agency purposes. (Added by Stats. 1977, Ch. 610.)
  31. 51370.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. )

    Verify source ↗

    The agency may issue and renew negotiable bond anticipation notes and construction loan notes, and related notes and agreements may include provisions, conditions, or limitations allowed for agency bonds and bond resolutions.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. ) ## 51370. In addition to the authority otherwise contained in this division to issue notes in anticipation of the sale of bonds, the agency may issue negotiable bond anticipation notes and negotiable construction loan notes and may renew such notes from time to time. Bond anticipation notes may be paid from the proceeds of sale of the bonds of the agency in anticipation of which they were issued. Construction loan notes may be paid from the proceeds of permanent loans. Bond anticipation notes and construction loan notes and agreements relating thereto and the resolution or resolutions authorizing such notes and agreements may contain any provisions, conditions, or limitations which a bond, agreement relating thereto, or bond resolution of the agency may contain. (Added by Stats. 1977, Ch. 610.)
  32. 51371.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. )

    Verify source ↗

    The agency may issue refunding bonds to refinance outstanding bonds under this chapter.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. ) ## 51371. The agency may provide for the issuance of refunding bonds for the purpose of refunding any bonds then outstanding which have been issued under the provisions of this chapter, including the payment of any redemption premium thereon and any interest accrued or to accrue to the date of redemption of such bonds, and for any purpose of the agency. The issuance of such obligations, the maturities and other details thereof, the rights of the holders thereof, and the rights, duties, and obligations of the agency in respect of the same shall be governed by the provisions of this chapter which relate to the issuance of bonds, insofar as such provisions may be appropriate therefor. (Added by Stats. 1977, Ch 610.)
  33. 51372.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. )

    Verify source ↗

    Refunding bond proceeds may be used to buy, redeem, or pay outstanding bonds, and may be invested while waiting to be applied.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. ) ## 51372. Refunding bonds issued as provided in Section 51371 may be sold, or exchanged for outstanding bonds issued under this part and, if sold, the proceeds thereof may be applied, in addition to any other authorized purposes, to the purchase, redemption, or payment of such outstanding bonds. Pending the application of the proceeds of any such refunding bonds, with any other available moneys, (1) to the payment of the principal, accrued interest, and any redemption premium on the bonds being refunded, (2) to the payment of any interest on such refunding bonds, or (3) to any expenses incurred in connection with such refunding, such proceeds may be invested in such obligations as are permitted under the bond resolution authorizing the issuance of refunding bonds. (Added by Stats. 1977, Ch. 610.)
  34. 51373.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. )

    Verify source ↗

    The state promises bondholders that it will not reduce or interfere with their rights and remedies under bonds issued under this part until the bonds and related amounts are fully paid. The agency may include this pledge in bond agreements.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. ) ## 51373. The state does hereby pledge to and agree with the holders of any bonds issued under this part that the state will not limit or alter the rights hereby vested in the agency to fulfill the terms of any agreements made with the holders thereof or in any way impair the rights and remedies of such holders until such bonds, together with the interest thereon, with interest on any unpaid installments of interest, and all costs and expenses in connection with any action or proceeding by or on behalf of such holders, are fully met and discharged. The agency is authorized to include this pledge and agreement of the state in any agreement with the holders of such notes or bonds. (Added by Stats. 1977, Ch. 610.)
  35. 51374.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. )

    Verify source ↗

    Bonds issued under this part are not state or local debt, and the state’s faith and credit or taxing power is not pledged for them unless the agency itself pledges its own full faith and credit.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. ) ## 51374. Bonds issued under the provisions of this part shall not be deemed to constitute a debt or liability of the state or of any political subdivision thereof, other than the agency, or a pledge of the faith and credit of the state or of any such political subdivision, other than the agency, but shall be payable solely from funds herein provided therefor. All such bonds and any prospectus or other printed representation of the agency concerning such bonds shall contain on the face thereof a statement to the following effect: “Neither the faith and credit nor the taxing power of the State of California is pledged to the payment of the principal of or interest on this bond.” The issuance of bonds under the provisions of this part shall not directly or indirectly or contingently obligate the state or any political subdivision thereof to levy or to pledge any form of taxation whatever therefor or to make any appropriation for their payment. Nothing contained in this section shall prevent or be construed to prevent the agency from pledging its full faith and credit to the payment of bonds or issue of bonds authorized pursuant to this part. (Added by Stats. 1977, Ch. 610.)
  36. 51375.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. )

    Verify source ↗

    The agency’s bonds may be treated as legal investments and used as security in certain public-deposit settings.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 7. Revenue Bonds [51350 - 51375] ( Chapter 7 added by Stats. 1977, Ch. 610. ) ## 51375. The bonds of the agency shall be legal investments in which all public officers and public bodies of this state, its political subdivisions, all municipalities and municipal subdivisions, all insurance companies and associations and other persons carrying on an insurance business, all banks, bankers, banking institutions, including savings and loan associations, building and loan associations, trust companies, savings banks and savings associations, investment companies and other persons carrying on a banking business, all administrators, guardians, conservators, executors, trustees and other fiduciaries, and all other persons whatsoever who are now or may hereafter be authorized to invest in bonds or in other obligations of the state, may properly and legally invest funds, including capital, in their control or belonging to them. The bonds may be used by any such private financial institution, person, or association as security for public deposits. The bonds are also hereby made securities which may properly and legally be deposited with and received by all public officers and bodies of the state or any agency or political subdivision of the state and all municipalities and public corporations for any purpose for which the deposit of bonds or other obligations of the state is now or may hereafter be authorized by law, including deposits to secure public funds. (Amended by Stats. 1979, Ch. 730.)
  37. 51400.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 8. Taxable Securities [51400 - 51403] ( Chapter 8 added by Stats. 1984, Ch. 1395, Sec. 1. )

    Verify source ↗

    The section states legislative findings that the agency’s mortgage-loan and housing-loan programs serve a public purpose, and that the agency may issue mortgage-backed securities to finance those purchases.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 8. Taxable Securities [51400 - 51403] ( Chapter 8 added by Stats. 1984, Ch. 1395, Sec. 1. ) ## 51400. The Legislature finds and declares that it is essential to the economic growth of the state and the supply of adequate residential and multifamily rental housing in the state and that it is a public purpose to expand the program of the agency of purchasing and selling residential mortgage loans for which all California families may be eligible and financing, purchasing, and selling loans for multifamily rental housing. The Legislature also finds and declares that it is a public purpose to create procedures through which the agency may issue mortgage-backed securities to finance these purchases for sale to pension funds, institutional investors, and individuals. (Amended by Stats. 1987, Ch. 904, Sec. 6. Effective September 21, 1987.)
  38. 51401.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 8. Taxable Securities [51400 - 51403] ( Chapter 8 added by Stats. 1984, Ch. 1395, Sec. 1. )

    Verify source ↗

    This section defines several terms used in Chapter 8, including mortgage loan, multifamily rental housing, residence, residential mortgage loan, and taxable securities.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 8. Taxable Securities [51400 - 51403] ( Chapter 8 added by Stats. 1984, Ch. 1395, Sec. 1. ) ## 51401. Notwithstanding any other provision of this division, as used in this chapter: (a) “Mortgage loan” means any residential mortgage loan or multifamily rental housing loan. (b) “Multifamily rental housing” means any existing structure of more than four dwelling units or any work or undertaking of more than four units of new construction, improvement, or rehabilitation for the provision of housing. (c) “Multifamily rental housing loan” means a mortgage loan secured by a mortgage on multifamily rental housing. (d) “Residence” means any existing structure of one to four dwelling units or any work or undertaking of one to four dwelling units of new construction, improvement, or rehabilitation for the provision of housing. (e) “Residential mortgage loan” means a mortgage loan secured by a mortgage on a residence. (f) “Taxable securities” means securities bearing interest that is otherwise taxable under the personal income tax provisions of federal tax law and which are issued to finance the purchase or making of mortgage loans pursuant to this chapter. (Amended by Stats. 1988, Ch. 829, Sec. 1. Effective September 12, 1988.)
  39. 51402.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 8. Taxable Securities [51400 - 51403] ( Chapter 8 added by Stats. 1984, Ch. 1395, Sec. 1. )

    Verify source ↗

    The agency may create and operate a mortgage loan program and use it to buy, make, hold, sell, pool, and securitize mortgage loans; financed multifamily rental housing must follow the occupancy standards in Section 51335.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 8. Taxable Securities [51400 - 51403] ( Chapter 8 added by Stats. 1984, Ch. 1395, Sec. 1. ) ## 51402. (a) Notwithstanding any other provision of this division, the agency may establish a mortgage loan program. Under the mortgage loan program, the agency may acquire or make first or second mortgage loans for the construction, purchase, improvement, or rehabilitation of residences or multifamily rental housing. (b) The agency may invest in, make, purchase, take assignments of, or otherwise acquire or make commitments to invest in, make, purchase, take assignments, or otherwise acquire any mortgage loan or partial interest or participation therein. The agency may sell, assign, or otherwise dispose of, or enter into commitments to sell, assign, or otherwise dispose of, any obligation, mortgage loan, or partial interest or participation therein, or create pools of obligations, mortgage loans, or partial interest or participations held by the agency, and issue and sell securities backed by pools. The agency may require the seller of obligations, residential mortgage loans, or partial interest or participations purchased by the agency, to use the proceeds of the sale for the purpose of financing mortgage loans, except when the proceeds arise from the sale of new loans, initiated for the purpose of sale to the agency or others. The agency may pledge mortgage loans, acquired pursuant to the mortgage loan program, to pay the principal, interest, and redemption premium, if any, on taxable securities issued by the agency for the mortgage loan program. (c) Any multifamily rental housing financed by the agency pursuant to this chapter shall be subject to the same occupancy standards specified in Section 51335. (Amended by Stats. 1987, Ch. 904, Sec. 8. Effective September 21, 1987.)
  40. 51403.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 8. Taxable Securities [51400 - 51403] ( Chapter 8 added by Stats. 1984, Ch. 1395, Sec. 1. )

    Verify source ↗

    The agency may issue taxable securities in amounts it considers necessary for mortgage-loan financing and related costs.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 8. Taxable Securities [51400 - 51403] ( Chapter 8 added by Stats. 1984, Ch. 1395, Sec. 1. ) ## 51403. (a) The agency may, from time to time, issue its taxable securities in whatever principal amount the agency determines is necessary to provide sufficient funds for the acquisition or making of mortgage loans and for the payment of interest on the securities, establishment of reserves to secure the securities, and other expenditures of the agency incident to, and necessary or convenient to, issuance of the securities, and the purchase or sale of mortgage loans in accordance with this chapter. (b) Notwithstanding any other provision of this division, taxable securities issued pursuant to this chapter shall not be subject to any limitation of aggregate principal amount outstanding at any time. The securities shall not be taken into account for purposes of the limitation on indebtedness of the agency contained in Section 51350, or any other limitation on the amount of securities of the agency which at any time may be issued or which may be outstanding. (c) Any taxable securities issued pursuant to this chapter shall not be a general obligation of the agency and shall be payable solely from the receipts, revenues, or other income derived in respect of mortgage loans or securities purchased or sold pursuant to this chapter. Any official statement or other prospectus used by the agency in offering taxable securities for sale shall clearly indicate that the securities are not the debt or obligation of the state or of the agency except to the extent provided in this section. (d) All proceeds received by the agency pursuant to this chapter shall be deposited in the Taxable Securities Account which is hereby created in the California Housing Finance Fund. Any moneys appropriated to the agency for the purposes of this chapter shall be deposited in the Taxable Securities Account and shall be repaid from revenues received by the agency pursuant to this chapter. (Amended by Stats. 1987, Ch. 904, Sec. 9. Effective September 21, 1987.)
  41. 51450.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 9. School Facility Fee Affordable Housing Assistance Programs [51450 - 51455] ( Chapter 9 added by Stats. 1998, Ch. 407, Sec. 26. )

    Verify source ↗

    The Department of General Services must contract with the California Housing Finance Agency to administer the chapter’s programs and allocate funds, and the Agency must administer those programs and allocate funds under its authority.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 9. School Facility Fee Affordable Housing Assistance Programs [51450 - 51455] ( Chapter 9 added by Stats. 1998, Ch. 407, Sec. 26. ) ## 51450. (a) It is the intent of the Legislature that affordable homebuyer and rental housing programs be implemented to address the needs of economically distressed entities in the state and the needs of very low, low-, and moderate-income homebuyers and renters who may be affected by the impact of school facility fees on the development of affordable housing. (b) The Department of General Services shall contract with the California Housing Finance Agency for the administration of the programs established by this chapter and for the allocation of funds to the purchasers of newly constructed residential structures and the housing sponsors of housing developments, pursuant to this chapter. The California Housing Finance Agency shall administer these programs and allocate funds in accordance with that agency’s authority as set forth in Part 3 (commencing with Section 50900) of Division 31. (Added by Stats. 1998, Ch. 407, Sec. 26. Effective August 27, 1998. Operative November 4, 1998, by Sec. 31 of Ch. 407, pursuant to adoption of Prop. 1A. Inoperative January 1, 2002, as provided in Section 51455.)
  42. 51451.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 9. School Facility Fee Affordable Housing Assistance Programs [51450 - 51455] ( Chapter 9 added by Stats. 1998, Ch. 407, Sec. 26. )

    Verify source ↗

    This section creates homebuyer down payment and rental assistance programs for affordable housing developments, with assistance tied to school facility fees and several eligibility conditions.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 9. School Facility Fee Affordable Housing Assistance Programs [51450 - 51455] ( Chapter 9 added by Stats. 1998, Ch. 407, Sec. 26. ) ## 51451. The Homebuyer Down Payment Assistance Program and the Rental Assistance Program are hereby established to provide assistance in the amount of the applicable school facility fee on affordable housing developments. (a) A Homebuyer Down Payment Assistance Program shall provide the following assistance: (1) Downpayment assistance to the purchaser of newly constructed residential structures in a development project in economically distressed areas in the aggregate amount of school facility fees paid pursuant to one or both of Sections 65995.5 and 65995.7 of the Government Code, less the amount that would be required pursuant to subdivision (b) of Section 65995 of the Government Code notwithstanding Sections 65995.5 and 65995.7 of the Government Code, if all of the following conditions are met: (A) The development project is located in a county with an unemployment rate that equals or exceeds 125 percent of the state unemployment rate. (B) Five hundred or more residential structures have been constructed in the county during 1997. (C) A building permit for an eligible residential structure in the development project is issued by the local agency on or after January 1, 1999. (D) The eligible residential structure is to be owner occupied for at least five years. If a structure is owner occupied for fewer than five years, the recipient of the assistance shall repay the School Facilities Fee Assistance Fund the amount of the assistance, on a prorated basis. (E) The sales price of the eligible residential structure does not exceed 175 percent of the median sales price of residential structures in the county during the average of the previous five years. (2) Downpayment assistance to the purchaser of any newly constructed residential structure in the development project in the aggregate amount of school facility fees paid pursuant to one, all, or any combination of Sections 65995, 65995.5, and 65995.7 of the Government Code, less the amount that would be required pursuant to subdivision (b) of Section 65995 of the Government Code notwithstanding Sections 65995.5 and 65995.7 of the Government Code, if all of the following conditions are met: (A) The development project is located in the state. (B) The sales price of the eligible residential structure in the development project does not exceed one hundred thirty thousand dollars ($130,000) unless the median sales price for California as reported by the Construction Industry Research Board for new homes sold indicates that the median sales price has increased. That sales price limit shall be increased or decreased each successive year by the agency according to the percentage change in the median sales price for new homes sold from the previous year as reported by the Construction Industry Research Board. (C) A building permit for an eligible residential structure in the development project is issued by the local agency on or after January 1, 1999. (D) The eligible residential structure is to be owner occupied for at least five years. If a structure is owner occupied for fewer than five years, the recipient of the assistance shall repay the School Facilities Fee Assistance Fund the amount of the assistance, on a prorated basis. (3) Downpayment to the purchaser of any newly constructed residential structure in a development project in the aggregate amount of school facility fees paid pursuant to one, all, or any combination of subdivision (b) of Section 65995 and Sections 65995.5 and 65995.7 of the Government Code for the eligible residential structure if all of the following conditions are met: (A) The assistance is provided to a qualified first-time homebuyer pursuant to Section 50068.5. (B) The qualified first-time homebuyer meets the moderate income requirements set forth in Section 50093. (C) A building permit for an eligible residential structure in the development project is issued by the local agency on or after January 1, 1999. (D) The eligible residential structure is to be owner occupied for at least five years. If a structure is owner occupied for fewer than five years, the recipient of the assistance shall repay the School Facilities Fee Assistance Fund the amount of the assistance, on a prorated basis. (b) A Rental Assistance Program shall provide assistance to the housing sponsor of a housing development in the aggregate amount of the school facility fees paid pursuant to one, all, or any combination of subdivision (b) of Section 65995 and Sections 65995.5 and Section 65995.7 of the Government Code that meets all of the following conditions: (1) The units are deed restricted to very low income households and are continuously available to or occupied by very low income households at rents that do not exceed those prescribed by Section 50053, except that for the purposes of this subdivision, very low income shall be defined as 30 percent times 30 percent of the median income adjusted for family size appropriate for the unit. (2) The number of dedicated residential units must equal or exceed the number of units supported by the reimbursed school impact fees determined by the average per unit development cost. (3) The dedicated residential units are regulated by an appropriate local or state agency for a minimum of 30 years. (4) A building permit for an eligible residential unit in the development project is issued by the local agency on or after January 1, 1999. (Amended by Stats. 2000, Ch. 127, Sec. 22. Effective July 10, 2000. Inoperative January 1, 2002, as provided in Section 51455.)
  43. 51452.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 9. School Facility Fee Affordable Housing Assistance Programs [51450 - 51455] ( Chapter 9 added by Stats. 1998, Ch. 407, Sec. 26. )

    Verify source ↗

    This section creates the School Facilities Fee Assistance Fund, directs certain money into it, sets appropriation amounts for specified fiscal years, and later ends the fund and transfers remaining amounts.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 9. School Facility Fee Affordable Housing Assistance Programs [51450 - 51455] ( Chapter 9 added by Stats. 1998, Ch. 407, Sec. 26. ) ## 51452. (a) The School Facilities Fee Assistance Fund is hereby established in the State Treasury and, notwithstanding Section 13340 of the Government Code, all money in the fund is continuously appropriated to the Department of General Services for the purposes of this chapter. All repayments of disbursed funds pursuant to this chapter or any interest earned from the investment in the Surplus Money Investment Fund or any other moneys accruing to the fund from whatever source shall be returned to the fund and are available for allocation by the California Housing Finance Agency to programs established pursuant to this chapter. (b) The following amounts are hereby appropriated from the General Fund to the School Facilities Fee Assistance Fund for administrative costs and to make payments to purchasers of newly constructed residential structures and housing sponsors of housing developments pursuant to this chapter from that fund by fiscal year as follows: (1) Twenty million dollars ($20,000,000) in the 1998–99 fiscal year. (2) Forty million dollars ($40,000,000) in the 1999–2000 fiscal year. (3) Forty million dollars ($40,000,000) in the 2000–01 fiscal year. (4) Forty million dollars ($40,000,000) in the 2001–02 fiscal year. (c) The funds shall be distributed to each program in proportion to the original total amounts available for each program as follows: (1) Twenty-eight million dollars ($28,000,000) shall be available for the program set forth in paragraph (1) of subdivision (a) of Section 51451, except that any funds not expended within 18 months of their appropriation and availability may also be available for programs set forth in paragraphs (2) and (3) of subdivision (a) of Section 51451. (2) Twenty-eight million dollars ($28,000,000) shall be available for the program set forth in paragraph (2) of subdivision (a) of Section 51451, except that any funds not expended within 18 months of their appropriation and availability may also be available for the program set forth in paragraph (3) of subdivision (a) of Section 51451. (3) Fifty-two million dollars ($52,000,000) shall be available for the program set forth in paragraph (3) of subdivision (a) of Section 51451. (4) Fifty-two million dollars ($52,000,000) shall be available for the program set forth in subdivision (b) of Section 51451. (d) Reservations received on or after January 1, 2002, for participation in the programs authorized by Section 51451 shall not be honored by the California Housing Finance Agency. As of that date, any unobligated amounts remaining in the School Facilities Fee Assistance Fund after the transfer made pursuant to Item 1760-115-0101 of Section 2.00 of the Budget Act of 2001 (Chapter 106 of the Statutes of 2001) shall be transferred to the General Fund. (e) Effective July 1, 2014, the School Facilities Fee Assistance Fund in the State Treasury is abolished and any remaining balance, assets, liabilities, and encumbrances in the fund as of July 1, 2014, are transferred to the Housing Rehabilitation Loan Fund. Notwithstanding Section 13340 of the Government Code, all transferred amounts are continuously appropriated to the department for the purpose of satisfying any liabilities and encumbrances and the purposes specified in this section. (Amended by Stats. 2014, Ch. 28, Sec. 59. (SB 854) Effective June 20, 2014. Inoperative January 1, 2002, as provided in Section 51455.)
  44. 51453.5.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 9. School Facility Fee Affordable Housing Assistance Programs [51450 - 51455] ( Chapter 9 added by Stats. 1998, Ch. 407, Sec. 26. )

    Verify source ↗

    This section moves $25 million into the School Facilities Fee Assistance Fund and lets the agency use it for administrative costs and payments, with possible reallocation based on how much is spent over time.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 9. School Facility Fee Affordable Housing Assistance Programs [51450 - 51455] ( Chapter 9 added by Stats. 1998, Ch. 407, Sec. 26. ) ## 51453.5. Notwithstanding Section 51452, the sum of twenty-five million dollars ($25,000,000) which is made available pursuant to subparagraph (B) of paragraph (1) of subdivision (a) of Section 100820 of the Education Code, shall be transferred to the School Facilities Fee Assistance Fund and, notwithstanding Section 13340 of the Government Code, is hereby continuously appropriated to the department for allocation for the agency for administrative costs and to make payments to purchasers of newly constructed residential structures pursuant to Section 51451.5 from that fund, as follows: (a) Twelve million five hundred thousand dollars ($12,500,000) shall be available for the program set forth in subdivision (a) of Section 51451.5, except that if less than 50 percent of these funds are expended within 24 months, all or part of those funds shall be available for the program set forth in subdivision (b) of Section 51451.5 at the discretion of the executive director of the agency. (b) Twelve million five hundred thousand dollars ($12,500,000) shall be available for the program set forth in subdivision (b) of Section 51451.5, except that if less than 50 percent of these funds are expended within 24 months, all or part of those funds shall be available for the program set forth in subdivision (a) of Section 51451.5 at the discretion of the executive director of the agency. (c) If after 48 months, more than 20 percent of the funds identified in subdivisions (a) and (b) are not expended, the executive director of the agency may make all or part of those funds available to the California Homebuyer’s Downpayment Assistance Program, as authorized under Chapter 11 (commencing with Section 51500). (d) All repayments of disbursed funds pursuant to this chapter or any interest earned from the investment in the Surplus Money Investment Fund or any other moneys accruing to the fund from whatever source shall be returned to the fund and is available for allocation by the agency to the program established pursuant to Section 51451.5. (Added by Stats. 2002, Ch. 935, Sec. 20. Effective January 1, 2003. Inoperative on July 1, 2016, as provided in Section 51455.)
  45. 51454.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 9. School Facility Fee Affordable Housing Assistance Programs [51450 - 51455] ( Chapter 9 added by Stats. 1998, Ch. 407, Sec. 26. )

    Verify source ↗

    The Legislative Analyst’s Office must submit a report to the Legislature and the Governor on the effectiveness of the chapter’s programs by January 1, 2001.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 9. School Facility Fee Affordable Housing Assistance Programs [51450 - 51455] ( Chapter 9 added by Stats. 1998, Ch. 407, Sec. 26. ) ## 51454. The Legislative Analyst’s Office shall submit a report to the Legislature and the Governor no later than January 1, 2001, regarding the effectiveness of the programs established pursuant to this chapter. (Added by Stats. 1998, Ch. 407, Sec. 26. Effective August 27, 1998. Operative November 4, 1998 by Sec. 31 of Ch. 407, pursuant to adoption of Prop. 1A. Inoperative January 1, 2002, as provided in Section 51455.)
  46. 51455.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 9. School Facility Fee Affordable Housing Assistance Programs [51450 - 51455] ( Chapter 9 added by Stats. 1998, Ch. 407, Sec. 26. )

    Verify source ↗

    This section turns off several cited sections on specific dates, then later transfers remaining fund money to another fund and keeps it appropriated for a stated purpose.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 9. School Facility Fee Affordable Housing Assistance Programs [51450 - 51455] ( Chapter 9 added by Stats. 1998, Ch. 407, Sec. 26. ) ## 51455. (a) Except as provided in subdivision (b), Sections 51450, 51451, 51452, and 51454 shall not be operative on and after January 1, 2002. (b) Except as provided in Section 51453 and 51453.5, until July 1, 2016, the School Facilities Fee Assistance Fund established by Section 51452 and the programmatic authority necessary to operate the programs authorized by Section 51451 shall continue on and after January 1, 2002, only with respect to any repayment obligation pertaining to that assistance or to any regulatory agreement imposed as a condition of that assistance. (c) Sections 51451.5, 51453, and 51453.5 shall not be operative on and after July 1, 2016. (d) On and after July 1, 2016, any unobligated amounts remaining in the School Facilities Fee Assistance Fund, including the repayment of disbursed moneys, or any interest earned from the investment of those moneys or any other moneys accruing to the fund from any source, shall be transferred to the Home Purchase Assistance Fund and are continuously appropriated to the agency for the purposes described in Section 51342. (Amended by Stats. 2016, Ch. 32, Sec. 81. (SB 837) Effective June 27, 2016. Note: Termination provisions in this section affect Sections 51450 through 51454.)
  47. 51475.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 10. Multifamily Housing [51475 - 51484] ( Chapter 10 added by Stats. 1990, Ch. 577, Sec. 1. )

    Verify source ↗

    The Legislature states that lower-income housing is being lost and says the purpose is to provide flexible and quick mortgage financing to preserve and expand existing affordable lower-income rental housing.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 10. Multifamily Housing [51475 - 51484] ( Chapter 10 added by Stats. 1990, Ch. 577, Sec. 1. ) ## 51475. (a) The Legislature finds and declares: (1) Significant amounts of housing built to serve lower income households and families is disappearing from the housing market. This phenomenon is due to government policies that allow prepayment of mortgages, termination of use restrictions and nonrenewal of subsidy contracts and to changes in market forces which increase property values and create pressure to convert to middle or upper income housing or other commercial uses. These conversions displace lower income tenants who have very limited options for relocating in comparable affordable housing. (2) There are nearly 2,000 rental housing projects built in this state prior to 1980 under Section 236, Section 221(d)(3) and Section 8 programs of the United States Department of Housing and Urban Development and the Section 515 Program of the federal Farmers’ Home Administration, containing approximately 123,000 units subject to potential conversion to higher market rent housing or condominium units which will result in the displacement of lower income tenants. (3) It is in the public interest to preserve and expand our existing affordable lower income housing stock. (b) It is the intent of the Legislature to provide a flexible and expeditious source of mortgage financing for bridge loans and gap financing to preserve and expand existing afforable lower income rental housing stock. (Added by Stats. 1990, Ch. 577, Sec. 1. Effective September 5, 1990.)
  48. 51476.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 10. Multifamily Housing [51475 - 51484] ( Chapter 10 added by Stats. 1990, Ch. 577, Sec. 1. )

    Verify source ↗

    The agency must administer a multifamily housing preservation program using funds made available by the California Housing Bond Act of 1990.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 10. Multifamily Housing [51475 - 51484] ( Chapter 10 added by Stats. 1990, Ch. 577, Sec. 1. ) ## 51476. The agency shall administer a program for the preservation of multifamily housing under authority of this chapter with funds made available by the California Housing Bond Act of 1990. (Added by Stats. 1990, Ch. 577, Sec. 1. Effective September 5, 1990.)
  49. 51477.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 10. Multifamily Housing [51475 - 51484] ( Chapter 10 added by Stats. 1990, Ch. 577, Sec. 1. )

    Verify source ↗

    This section creates the Affordable Housing Preservation and Rehabilitation Fund and directs that the money in it is continuously appropriated to the agency.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 10. Multifamily Housing [51475 - 51484] ( Chapter 10 added by Stats. 1990, Ch. 577, Sec. 1. ) ## 51477. There is hereby created in the State Treasury an Affordable Housing Preservation and Rehabilitation Fund. “Fund” as used in this chapter means the Affordable Housing Preservation and Rehabilitation Fund. Notwithstanding the provisions of Section 13340 of the Government Code, all moneys in the fund are continuously appropriated to the agency without regard to fiscal years, for expenditure pursuant to this chapter and for defraying the actual administrative costs of the agency incurred pursuant to this chapter. Notwithstanding Section 16305.7 of the Government Code, any interest earned or other increment derived from investments made from moneys in the fund shall be deposited in the fund. (Added by Stats. 1990, Ch. 577, Sec. 1. Effective September 5, 1990.)
  50. 51478.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 10. Multifamily Housing [51475 - 51484] ( Chapter 10 added by Stats. 1990, Ch. 577, Sec. 1. )

    Verify source ↗

    The agency’s powers under this chapter are cumulative, and the chapter provides an alternative way to issue bonds and make mortgage loans.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 10. Multifamily Housing [51475 - 51484] ( Chapter 10 added by Stats. 1990, Ch. 577, Sec. 1. ) ## 51478. All of the powers granted under this chapter are cumulative with powers of the agency under other provisions of this part, and this chapter constitutes an alternative method to issue bonds and to make mortgage loans pursuant to the provisions of this chapter. (Added by Stats. 1990, Ch. 577, Sec. 1. Effective September 5, 1990.)
  51. 51479.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 10. Multifamily Housing [51475 - 51484] ( Chapter 10 added by Stats. 1990, Ch. 577, Sec. 1. )

    Verify source ↗

    When administering a preservation program for multifamily housing, the agency may place available funds into separate accounts.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 10. Multifamily Housing [51475 - 51484] ( Chapter 10 added by Stats. 1990, Ch. 577, Sec. 1. ) ## 51479. In administering a program for the preservation of multifamily housing hereunder, the agency may segregate funds available for these purposes into separate accounts as necessary to reflect the different types of assistance authorized by this chapter. (Amended by Stats. 2002, Ch. 26, Sec. 5. Effective April 22, 2002. Operative after November 5, 2002 (Prop. 46 was adopted) by Sec. 9 of Ch. 26.)
  52. 51480.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 10. Multifamily Housing [51475 - 51484] ( Chapter 10 added by Stats. 1990, Ch. 577, Sec. 1. )

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    This section authorizes mortgage lending for certain multifamily rental housing developments at risk of conversion and sets loan, rent, occupancy, and regulatory-agreement requirements.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 10. Multifamily Housing [51475 - 51484] ( Chapter 10 added by Stats. 1990, Ch. 577, Sec. 1. ) ## 51480. (a) (1) Mortgage lending authorized by this chapter shall be for multifamily rental housing developments at risk of conversion. For the purposes of this chapter, multifamily rental housing developments at risk of conversion shall include any of the following: (A) Federally assisted housing for which the low-income use restriction may terminate or be substantially modified within four years. (B) State or locally assisted housing for which the low-income use restrictions may terminate or be substantially modified within four years. (C) Other privately owned housing serving at least 30 percent lower income tenants which is demonstrated to be at risk of converting to other residential or nonresidential use within four years resulting in the displacement of lower income tenants. (2) For the purposes of this chapter, “substantially modified” means any change to use restrictions which would result in reducing the number of units originally required to be set aside for lower income tenants or reducing the time the units are required to be set aside for lower income tenants. (b) Mortgage lending authorized by this chapter for multifamily rental housing developments at risk of conversion shall include the following: (1) Loans for the acquisition of an existing multifamily rental housing development for a temporary period prior to and pursuant to a plan made or approved by the agency for permanent financing and any necessary rehabilitation of the multifamily rental housing development. Loans made pursuant to this paragraph shall not exceed 90 percent of the value of the property and the costs of holding the housing for a period of up to three years and shall accrue simple interest at a rate of 3 percent per annum. All principal and accrued interest shall be due and payable not later than three years from the date of the loan, or earlier upon sale, refinancing, syndication, or permanent loan closing. The board may extend the term of the loan for one additional year based on a finding that additional time is needed to secure permanent financing for the development. The loan shall be subject to a regulatory agreement with an occupancy restriction for the assisted units for 40 years. (2) Loans for acquisition or acquisition and rehabilitation secured by a lien junior to other permanent financing for a multifamily rental housing development pursuant to a plan made or approved by the agency for permanent financing and any necessary rehabilitation of the multifamily rental housing development. Loans made pursuant to this paragraph shall be made upon terms and conditions determined by the board, but in an amount which, when added to debt secured by a lien senior to the loan, does not exceed 90 percent of the value of the property or if the property is rehabilitated, 90 percent of the after rehabilitation value. The amount included in an acquisition and rehabilitation loan for rehabilitation shall not exceed $5,000 per unit. The number of assisted units shall be at least equal to the proportion of project cost financed pursuant to this chapter to total project cost. Loans made pursuant to this paragraph shall be for a term of not less than 40 years and shall bear simple interest at a rate of 3 percent per annum. The board may extend the term of the loan for an additional 10 years as long as the rental housing development is operated in a manner consistent with the regulatory agreement. The board, in its discretion, may provide for the current payment of interest or for the accrual of interest over the term of the loan. All principal and any accrued interest shall be due and payable at the end of the loan term, or earlier upon sale, refinancing or syndication of the property unless the agency determines the proceeds obtained from a refinancing or syndication are necessary to maintain the housing development in accordance with the terms and conditions of the regulatory agreement or otherwise further the purposes of the chapter. The loan shall be subject to a regulatory agreement with an occupancy restriction for the assisted units for 40 years. (c) (1) In making mortgage loans pursuant to this chapter, the agency shall consider the public benefit to be derived from the loan, and the amount of loan shall not exceed the amount necessary to ensure the preservation and or expansion of lower income housing consistent with paragraph (2). The loan amount shall be limited to the total amount required, when considered with other available financing and assistance, in order to achieve all of the following: (A) Enable the acquisition or acquisition and rehabilitation of assisted rental housing units. (B) Ensure that rents for assisted units are in accordance with program requirements. (C) Operate in compliance with all other program requirements. (D) Allow a debt service coverage ratio in an amount sufficient to satisfy the requirements of other lenders providing financing for the rental housing development, but not to exceed 115 percent. (2) In making loans pursuant to this chapter, the agency shall do the following: (A) Establish application forms and materials. (B) Accept applications at any time and make loan commitments at scheduled meetings of the board. (C) Ensure that the housing development meets minimum threshold requirements relating to the capability of the applicant to develop and manage the housing development. (D) Ensure that the housing development is economically feasible and complies with the program requirements of this chapter. (E) Use the following preferences in evaluating the housing developments and making loan commitments: (i) The smallest percentage of the maximum allowable rents for lower income tenants. (ii) The longest period of affordability. (iii) The least permanent displacement of lower income tenants. (iv) The greatest number of units consisting of three or more bedrooms. (v) The greatest number of units for single room occupancy for very low income tenants. (vi) The maximum use of private, local, federal, and other financing. (vii) The greatest impact on the availability of affordable low-income housing in a community. (F) In making loans pursuant to this subdivision, the agency shall consider variances in market conditions relating to the cost of developing rental housing. (d) (1) All loans made pursuant to this section shall be subject to a regulatory agreement executed by the borrower and recorded in the office of the county recorder of the county in which the property is located. (2) The regulatory agreement shall contain at least all of the following: (A) Restrictions on occupancy of units within the housing development to meet the requirements of paragraphs (1) and (2) of subdivision (b). (B) Provisions governing tenant selection to ensure occupancy by lower income tenants. (C) Provisions governing occupancy standards and rental agreements. (D) Provisions for setting rents pursuant to subdivision (g). (E) Provisions limiting distribution of earnings pursuant to paragraphs (1) and (2) of subdivision ( l). (F) Provisions specifying the conditions under which the agency and any intended beneficiary may enforce the regulatory agreement. (3) The regulatory agreement shall be recorded against the property and shall be deemed a covenant running with the land and shall be binding upon the sponsor and any and all successors in interest in case of sale or transfer of the housing development for the original term of the loan, regardless of any prepayment of the loan, except when the sale or transfer is a result of a foreclosure by the first lienholder. (e) Not less than 20 percent, nor more than 40 percent, of the assisted units financed pursuant to paragraph (3) of subdivision (a) shall be available on a priority basis to elderly or handicapped persons. (f) (1) No loan shall be made pursuant to this section if, as a result of the loan, the aggregate number of units in the housing development available to persons of low and very low income would be less than the number of those units available prior to making the loan. (2) No loan shall be made pursuant to this section unless the number of low- and very low income units is equal to or exceeds 30 percent of the total units in the housing development, except that a loan may be made when the number of units is equal to or exceeds 20 percent of the total units when the housing development was originally financed using tax-exempt bond proceeds and the housing sponsor agrees to increase the number of low- and very low income units to 30 percent of the total units as the units become available. (g) (1) For all units not receiving assistance payments under Section 8 of the United States Housing Act of 1937, as amended (42 U.S.C. Sec. 1437f), or other rental assistance payments, the respective rent for each assisted unit existing prior to loan assistance shall be the base rent for that unit. The base rent for each occupied unit may be annually increased in accordance with the inflation index specified in subdivision (h). (2) For all units receiving project-based payments under Section 8 of the United States Housing Act of 1937 or other rental assistance payments, at the time these payments cease to be available, base rents shall be established as follows: rents for units occupied by tenants earning less than 35 percent of median income shall be no more than 30 percent of 35 percent of median income adjusted for family size appropriate for the unit, rents for units occupied by tenants earning between 35 percent and 50 percent of median income shall be 30 percent of 50 percent of median income adjusted for family size appropriate for the unit, rents for units occupied by tenants earning between 51 percent and 80 percent of median income shall be 30 percent of 60 percent of median income adjusted for family size appropriate for the unit. The base rent for each unit may be annually increased in accordance with the inflation index specified in subdivision (h). In determining the loan amount, the agency shall ensure that these rent levels are achieved at the time the rental assistance payments cease, taking into account the projected date for cessation of the rental payments. The agency shall require that sponsors make every effort to seek renewal of the rental assistance payments if renewal is possible. (3) Upon vacancy of an assisted unit, the rent for that unit shall be the last rent charged pursuant to paragraph (1) or (2). The rent for units may be annually increased in accordance with the inflation index specified in subdivision (h). (4) For the life of the project, the sponsor shall maintain the assisted units in the proportion of tenants with incomes less than 35 percent of median income, between 35 percent and 50 percent of median income, and between 51 percent and 80 percent of median income as existed in the project at the time of application. Upon request of the sponsor, the agency may allow vacated units originally occupied by tenants earning less than 35 percent of median income to be rented to tenants earning up to 50 percent of median income, adjusted for family size, in the event the agency determines that the base rent is not affordable to tenants below 35 percent of median income. (h) Rents for units financed pursuant to this section may be automatically increased by the sponsor annually according to an inflation index to be determined by the board. The inflation index shall reflect anticipated annual changes in rental housing development operating costs from the base year in which rents are initially established for the housing development. Any sponsor may appeal to the agency in writing for a greater adjustment in rents necessary to ensure the fiscal integrity of the housing development; the request on appeal shall be deemed approved unless rejected by the agency within 60 days from the date of receipt of the appeal. (i) Not less than 20 percent of funds made available to the agency for the purposes specified in this section shall be made available for loans in rural areas. (j) (1) If a multifamily rental housing development assisted by this chapter is not economically feasible, the sponsor, with the approval of the agency, may remove one or more assisted units from the occupancy requirements for a period of time necessary for the development to again become economically feasible. (2) For purposes of paragraph (1), “economically feasible” means that project revenue equals or exceeds project operating expenses, excluding any return on investment. (3) For purposes of paragraph (2), “operating expenses” means the reasonable expenses necessary to operate and maintain the project in habitable condition, including debt service, taxes, and reasonable reserves. (4) For purposes of this paragraph, debt service shall not include the portion of payments of principal and interest attributed to any excess refinanced principal over the outstanding principal of the loan that was refinanced, except to the extent the excess was used for the rehabilitation of the project. (k) To the extent that any provisions of this section relating to use and rent restriction conflict with the requirements of federal law, the requirements of federal law shall prevail for the period the project is subject to federal restrictions. ( l) A loan made pursuant to paragraph (1) or (2) of subdivision (b) may be assumed if the terms, conditions, and requirements of the regulatory agreement are maintained. (m) (1) A nonprofit sponsor, other than a governmental agency, may distribute earnings from assisted and nonassisted units in an amount no greater than 8 percent of the nonprofit sponsor’s actual investment in the housing development. A for-profit sponsor may chose between the following options: (A) It may distribute earnings from assisted and nonassisted units in an amount no greater than 8 percent of its actual investment in the housing development. (B) It may forgo distribution of earnings from assisted units and not be subject to any limitation on the amount of distribution it receives from nonassisted units. (2) The housing sponsor shall apply any earnings in excess of the amount eligible to be distributed under paragraph (1) to reduce rent of assisted units or to increase the number of assisted units. (Added by Stats. 1990, Ch. 577, Sec. 1. Effective September 5, 1990.)
  53. 51481.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 10. Multifamily Housing [51475 - 51484] ( Chapter 10 added by Stats. 1990, Ch. 577, Sec. 1. )

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    Agency mortgages must be secured by a first deed of trust, or by a junior deed of trust when needed to achieve the chapter’s purposes.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 10. Multifamily Housing [51475 - 51484] ( Chapter 10 added by Stats. 1990, Ch. 577, Sec. 1. ) ## 51481. Mortgages made by the agency under authority of this chapter shall be secured by a first deed of trust, or by a deed of trust junior to a first deed of trust if it is necessary to accomplish the purposes of this chapter. Except as otherwise specified in this chapter, the principal amount of, and the conditions of mortgage loans, shall be determined by the board. (Added by Stats. 1990, Ch. 577, Sec. 1. Effective September 5, 1990.)
  54. 51482.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 10. Multifamily Housing [51475 - 51484] ( Chapter 10 added by Stats. 1990, Ch. 577, Sec. 1. )

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    The agency must adopt board-approved policies for tenant admission, tenancy termination, and developer eligibility for housing financed under this part.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 10. Multifamily Housing [51475 - 51484] ( Chapter 10 added by Stats. 1990, Ch. 577, Sec. 1. ) ## 51482. The agency shall adopt policies by resolution of the board for the admission of tenants, termination of tenancies, and eligibility of developers of housing financed under this part. (Added by Stats. 1990, Ch. 577, Sec. 1. Effective September 5, 1990.)
  55. 51483.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 10. Multifamily Housing [51475 - 51484] ( Chapter 10 added by Stats. 1990, Ch. 577, Sec. 1. )

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    The agency must consult an outside advisory committee to help implement this chapter.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 10. Multifamily Housing [51475 - 51484] ( Chapter 10 added by Stats. 1990, Ch. 577, Sec. 1. ) ## 51483. The agency shall consult with an outside advisory committee to assist in the implementation of this chapter. The advisory committee shall be comprised of individuals who are knowledgeable about housing finance, the conversion of subsidized housing, the operation of low-income multifamily rental housing, the needs of lower income tenants and the intent and objectives of this chapter. (Added by Stats. 1990, Ch. 577, Sec. 1. Effective September 5, 1990.)
  56. 51484.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 10. Multifamily Housing [51475 - 51484] ( Chapter 10 added by Stats. 1990, Ch. 577, Sec. 1. )

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    The agency has power to make commitments and sign agreements with developers, other lenders, and public or private entities for mortgage loans authorized by this chapter.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 10. Multifamily Housing [51475 - 51484] ( Chapter 10 added by Stats. 1990, Ch. 577, Sec. 1. ) ## 51484. The agency shall have all powers granted under authority of this part to make commitments and execute agreements with developers, other lenders, and any public or private entity in making mortgage loans authorized by this chapter. (Added by Stats. 1990, Ch. 577, Sec. 1. Effective September 5, 1990.)
  57. 51500.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 11. California Homebuyer’s Downpayment Assistance Program [51500 - 51511] ( Chapter 11 added by Stats. 2000, Ch. 81, Sec. 1. )

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    This chapter may be cited as the California Homebuyer’s Downpayment Assistance Program.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 11. California Homebuyer’s Downpayment Assistance Program [51500 - 51511] ( Chapter 11 added by Stats. 2000, Ch. 81, Sec. 1. ) ## 51500. This chapter shall be known and may be cited as the California Homebuyer’s Downpayment Assistance Program. (Added by Stats. 2000, Ch. 81, Sec. 1. Effective July 5, 2000. Inoperative on July 1, 2016, as provided in Section 51511.)
  58. 51501.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 11. California Homebuyer’s Downpayment Assistance Program [51500 - 51511] ( Chapter 11 added by Stats. 2000, Ch. 81, Sec. 1. )

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    The Legislature states that this chapter was enacted to make existing residential mortgage financing more affordable for California homebuyers.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 11. California Homebuyer’s Downpayment Assistance Program [51500 - 51511] ( Chapter 11 added by Stats. 2000, Ch. 81, Sec. 1. ) ## 51501. The Legislature finds and declares all of the following: (a) There is a continuing and urgent need to provide affordable mortgage financing to meet the increasingly unfulfilled housing needs of citizens of this state. (b) The high cost of housing impedes the ability of California employers to compete in the national marketplace for employees. (c) Affordable housing enhances the quality of life for California residents and provides fuel for the state’s economic engine. (d) Housing is a critical component of the California economy, both as an income producing sector and a principal factor in economic development. (e) California’s housing crisis severely impacts families struggling to provide safe, stable homes for their children to grow and learn and the workers who are the backbone of many of the state’s most important industries. (f) The percentage of Californians able to purchase their own homes continues to decline, even as that percentage climbs for the rest of the nation. (g) Therefore, this chapter is enacted to make existing financing for residential mortgages more affordable to California’s homebuyers. (Added by Stats. 2000, Ch. 81, Sec. 1. Effective July 5, 2000. Inoperative on July 1, 2016, as provided in Section 51511.)
  59. 51502.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 11. California Homebuyer’s Downpayment Assistance Program [51500 - 51511] ( Chapter 11 added by Stats. 2000, Ch. 81, Sec. 1. )

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    This section states that the program exists to help first-time low- and moderate-income homebuyers use existing mortgage financing.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 11. California Homebuyer’s Downpayment Assistance Program [51500 - 51511] ( Chapter 11 added by Stats. 2000, Ch. 81, Sec. 1. ) ## 51502. The purpose of the California Homebuyer’s Downpayment Assistance Program is to assist first-time low- and moderate-income homebuyers utilizing existing mortgage financing. (Added by Stats. 2000, Ch. 81, Sec. 1. Effective July 5, 2000. Inoperative on July 1, 2016, as provided in Section 51511.)
  60. 51504.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 11. California Homebuyer’s Downpayment Assistance Program [51500 - 51511] ( Chapter 11 added by Stats. 2000, Ch. 81, Sec. 1. )

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    The agency must run a downpayment assistance program and follow caps and conditions on assistance amounts, repayment, and administration.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 11. California Homebuyer’s Downpayment Assistance Program [51500 - 51511] ( Chapter 11 added by Stats. 2000, Ch. 81, Sec. 1. ) ## 51504. (a) The agency shall administer a downpayment assistance program that includes, but is not limited to, all of the following: (1) Downpayment assistance shall include, but not be limited to, a deferred-payment, low-interest, junior mortgage loan to reduce the principal and interest payments and make financing affordable to first-time low- and moderate-income home buyers. (2) (A) Except as provided in subparagraph (B) or (C), the amount of downpayment assistance shall not exceed 3 percent of the home sale price. (B) The amount of downpayment assistance for a new home within an infill opportunity zone, as defined in Section 65088.1 of the Government Code, a transit village development district, as defined in Section 65460.4 of the Government Code, or a transit-oriented development specific plan area, as defined in paragraph (6), shall not exceed 5 percent of the purchase price or the appraised value, whichever amount is less, of the new home. The borrower of the downpayment assistance shall provide the lender originating the loan with a certification from the local government agency administering the infill opportunity zone, the transit village development district, or the transit-oriented development specific plan area that states that the property involved in the loan transaction is within the boundaries of either the infill opportunity zone, the transit village development district, or the transit-oriented development specific plan area. (C) Notwithstanding paragraph (1), the agency may, but is not required to, provide downpayment assistance that does not exceed 6 percent of the home sale price to first-time low-income home buyers who, as documented to the agency by a nonprofit organization that is certified and funded to provide home ownership counseling by a federally funded national nonprofit corporation, are purchasing a residence in a community revitalization area targeted by the nonprofit organization as a neighborhood in need of economic stimulation, renovation, and rehabilitation through efforts that include increased home ownership opportunities for low-income families. The agency shall not use more than six million dollars ($6,000,000) in funds made available pursuant to Section 53533 for the purposes of this paragraph. (3) The amount of the downpayment assistance shall be secured by a deed of trust in a junior position to the primary financing provided. The term of the loan for the downpayment assistance shall not exceed the term of the primary loan. (4) (A) Except as provided in subparagraphs (B) and (C), the amount of the downpayment assistance shall be due and payable at the end of the term or upon sale of or refinancing of the home. The borrower may refinance the mortgages on the home provided that the principal and accrued interest on the junior mortgage loan securing the downpayment assistance are repaid in full. All repayments shall be made to the agency to be reallocated for the purposes of this chapter. (B) The agency may, in its discretion, permit the downpayment assistance loan to be subordinated to refinancing if it determines that the borrower has demonstrated hardship, subordination is required to avoid foreclosure, and the new loan meets the agency’s underwriting requirements. The agency may permit subordination on those terms and conditions as it determines are reasonable. (C) The amount of the downpayment assistance shall not be due and payable upon sale of the home if the first mortgage loan is insured by the Federal Housing Administration (FHA) or if the first mortgage loan is, or has been, transferred to the FHA, or if the requirement is otherwise contrary to regulations of the United States Department of Housing and Urban Development governing FHA insured first mortgage loans. (5) The agency may use up to 5 percent of the funds appropriated by the Legislature for purposes of this chapter to administer this program. (6) For purposes of this section, “transit-oriented development specific plan area” means a specific plan that meets the criteria set forth in Section 65451 of the Government Code, is centered around a rail or light-rail station, ferry terminal, bus hub, or bus transfer station, and is intended to achieve a higher density use of land that facilitates use of the transit station. (b) In addition to the downpayment assistance program authorized by subdivision (a), the agency may, at its discretion, use not more than seventy-five million dollars ($75,000,000) of the funds available pursuant to this chapter to finance the acquisition of land and the construction and development of housing developments, as defined in Section 50073.5, and for-sale residential structures through short-term loans pursuant to its authority pursuant to Section 51100. However, the agency shall make downpayment assistance provided pursuant to paragraph (1), subparagraphs (A) and (B) of paragraph (2), and paragraphs (3) to (5), inclusive, of subdivision (a) the priority use for these funds. A loan made pursuant to this section is not subject to Article 4 (commencing with Section 51175) of Chapter 5. (Amended (as amended by Stats. 2013, Ch. 82) by Stats. 2013, Ch. 770, Sec. 1. (AB 637) Effective January 1, 2014. Inoperative on July 1, 2016, as provided in Section 51511.)
  61. 51505.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 11. California Homebuyer’s Downpayment Assistance Program [51500 - 51511] ( Chapter 11 added by Stats. 2000, Ch. 81, Sec. 1. )

    Verify source ↗

    The agency must provide downpayment assistance for the program, but it may also choose not to provide assistance to a local issuer. The assistance is subject to program rules, can sometimes be deferred, may be subordinated in limited hardship cases, and generally cannot exceed the greater of $7,500 or 3% of the home sales price.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 11. California Homebuyer’s Downpayment Assistance Program [51500 - 51511] ( Chapter 11 added by Stats. 2000, Ch. 81, Sec. 1. ) ## 51505. (a) In addition to the downpayment assistance program authorized by Section 51504, and notwithstanding any provision of Section 51504 to the contrary, the agency shall provide downpayment assistance from the funds set aside pursuant to subparagraph (D) of paragraph (7) of subdivision (a) of Section 53533 for the purposes of the portion of the Extra Credit Teacher Home Purchase Program provided for in subdivision (g) of Section 8869.84 of the Government Code and any other school personnel home ownership assistance programs as set forth by the California Debt Limit Allocation Committee, as operated by the agency. Notwithstanding the foregoing, the agency may, but is not required to, provide downpayment assistance pursuant to this section to any local issuer participating in the Extra Credit Teacher Home Purchase Program and any other school personnel home ownership assistance programs as set forth by the California Debt Limit Allocation Committee. (b) (1) Downpayment assistance for purposes of this section shall be subject to, and shall meet the requirements of, the Extra Credit Teacher Home Purchase Program and any other school personnel home ownership programs as set forth by the California Debt Limit Allocation Committee, and shall include, but not be limited to, deferred payment, low interest rate loans. (2) Except as provided in paragraphs (3) and (5), payment of principal and interest is deferred until the time that the home is sold or refinanced. (3) The agency may, in its discretion, permit the downpayment assistance loan to be subordinated to refinancing if it determines that the borrower has demonstrated hardship, subordination is required to avoid foreclosure, and the new loan meets the agency’s underwriting requirements. The agency may permit subordination on those terms and conditions as it determines are reasonable, but subordination is not permitted if the borrower has sufficient equity to repay the loan. (4) This downpayment assistance shall meet the requirements of paragraph (3) of, and subparagraph (A) of paragraph (4) of, subdivision (a) of Section 51504. (5) The amount of the downpayment assistance shall not be due and payable upon sale of the home if the first mortgage loan is insured by the Federal Housing Administration (FHA) or if the first mortgage loan is, or has been, transferred to the FHA, or if the requirement is otherwise contrary to regulations of the United States Department of Housing and Urban Development governing FHA insured first mortgage loans. (c) Loans made pursuant to this section may include a provision whereby interest, principal, or both, of the loan is forgiven upon conditions to be established by the agency, or any other provision designed to carry out the purposes of the Extra Credit Teacher Home Purchase Program and any other school personnel home ownership programs as set forth by the California Debt Limit Allocation Committee. (d) Downpayment assistance pursuant to this section shall not exceed the greater of seven thousand five hundred dollars ($7,500) or 3 percent of the home sales price. However, the agency may, with the concurrence of the California Debt Limit Allocation Committee, establish higher assistance limits as necessary to ensure sufficient assistance to allow program participation in high cost areas. (Amended by Stats. 2015, Ch. 303, Sec. 327. (AB 731) Effective January 1, 2016. Inoperative on July 1, 2016, as provided in Section 51511.)
  62. 51506.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 11. California Homebuyer’s Downpayment Assistance Program [51500 - 51511] ( Chapter 11 added by Stats. 2000, Ch. 81, Sec. 1. )

    Verify source ↗

    This program may provide downpayment assistance only to first-time homebuyers.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 11. California Homebuyer’s Downpayment Assistance Program [51500 - 51511] ( Chapter 11 added by Stats. 2000, Ch. 81, Sec. 1. ) ## 51506. The downpayment assistance provided by this program shall be limited to first-time homebuyers. (Added by Stats. 2000, Ch. 81, Sec. 1. Effective July 5, 2000. Inoperative on July 1, 2016, as provided in Section 51511.)
  63. 51510.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 11. California Homebuyer’s Downpayment Assistance Program [51500 - 51511] ( Chapter 11 added by Stats. 2000, Ch. 81, Sec. 1. )

    Verify source ↗

    The agency has the powers given by this part to administer this chapter.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 11. California Homebuyer’s Downpayment Assistance Program [51500 - 51511] ( Chapter 11 added by Stats. 2000, Ch. 81, Sec. 1. ) ## 51510. The agency shall have all the powers conferred upon it by this part (commencing with Section 50900) in administering this chapter. (Added by Stats. 2000, Ch. 81, Sec. 1. Effective July 5, 2000. Inoperative on July 1, 2016, as provided in Section 51511.)
  64. 51511.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 11. California Homebuyer’s Downpayment Assistance Program [51500 - 51511] ( Chapter 11 added by Stats. 2000, Ch. 81, Sec. 1. )

    Verify source ↗

    This section says the chapter generally stops operating after July 1, 2016, except for this section, and remaining unobligated funds must be transferred to the Home Purchase Assistance Fund.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 11. California Homebuyer’s Downpayment Assistance Program [51500 - 51511] ( Chapter 11 added by Stats. 2000, Ch. 81, Sec. 1. ) ## 51511. (a) This chapter, except for this section, shall not be operative on and after July 1, 2016. (b) On and after July 1, 2016, any unobligated amounts remaining in any fund established for the purposes of this chapter, including the repayment of disbursed moneys, or any interest earned from the investment of those moneys or any other moneys accruing to the fund from any source, shall be transferred to the Home Purchase Assistance Fund and are continuously appropriated to the agency for the purposes described in Section 51342. (Added by Stats. 2016, Ch. 32, Sec. 82. (SB 837) Effective June 27, 2016. Note: Termination clause affects Chapter 11, commencing with Section 51500, except for this section.)
  65. 51520.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 12. California Dream for All Program [51520 - 51529] ( Chapter 12 added by Stats. 2022, Ch. 70, Sec. 43. )

    Verify source ↗

    This chapter is known, and may be cited, as the California Dream for All Program.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 12. California Dream for All Program [51520 - 51529] ( Chapter 12 added by Stats. 2022, Ch. 70, Sec. 43. ) ## 51520. This chapter shall be known, and may be cited, as the California Dream for All Program. (Added by Stats. 2022, Ch. 70, Sec. 43. (SB 197) Effective June 30, 2022.)
  66. 51521.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 12. California Dream for All Program [51520 - 51529] ( Chapter 12 added by Stats. 2022, Ch. 70, Sec. 43. )

    Verify source ↗

    This section states the Legislature’s findings and says the California Dream for All Program is enacted to help eligible low- and moderate-income first-time homebuyers afford homeownership through a revolving shared-appreciation model.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 12. California Dream for All Program [51520 - 51529] ( Chapter 12 added by Stats. 2022, Ch. 70, Sec. 43. ) ## 51521. The Legislature finds and declares all of the following: (a) Housing prices in California have risen dramatically in all parts of the state in the past decade, while the wealth gap, especially the racial wealth gap, continues to be a growing problem in California. (b) Households who cannot afford a large down payment to offset the higher prices are increasingly locked out of homeownership. This disproportionately locks out first-time and first-generation homebuyers. This is particularly true for households of color who have faced decades of systemic racial barriers. (c) Thriving in the middle class and building generational wealth, the California dream, starts with homeownership. (d) Therefore, the California Dream for All Program is enacted to establish a revolving, shared appreciation model to make homeownership more attainable for eligible low- and moderate-income first-time homebuyers. (e) In a typical example, the program could provide 20 percent toward the purchase price and the homebuyer would finance the remaining 80 percent with a traditional mortgage. This would result in the first-time homebuyer purchasing the home with a low downpayment, while also lowering monthly mortgage payments by more than thirty percent compared with existing traditional low downpayment programs, a savings of more than $12,000 per year. Once the house is resold or refinanced, the program would be reimbursed for the 20 percent share, and the proceeds would revolve through the program to support additional first-time homebuyers. (Added by Stats. 2022, Ch. 70, Sec. 43. (SB 197) Effective June 30, 2022.)
  67. 51522.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 12. California Dream for All Program [51520 - 51529] ( Chapter 12 added by Stats. 2022, Ch. 70, Sec. 43. )

    Verify source ↗

    This section defines key terms used in the chapter, including “first-time homebuyer,” “Fund,” “Program,” and “shared appreciation loan.”

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 12. California Dream for All Program [51520 - 51529] ( Chapter 12 added by Stats. 2022, Ch. 70, Sec. 43. ) ## 51522. For the purposes of this chapter: (a) “First-time homebuyer” has the same meaning as defined in Section 50068.5. (b) “Fund” means the California Dream for All Fund. (c) “Program” means the California Dream for All Program. (d) “Shared appreciation loan” means a deferred-payment subordinate mortgage loan, the repayment of which is based on the amount of the subordinate loan plus the appreciation in the value of the home financed by the loan from the time of purchase to the time the home is sold or refinanced. (Added by Stats. 2022, Ch. 70, Sec. 43. (SB 197) Effective June 30, 2022.)
  68. 51523.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 12. California Dream for All Program [51520 - 51529] ( Chapter 12 added by Stats. 2022, Ch. 70, Sec. 43. )

    Verify source ↗

    The agency must run the California Dream for All Program, adopt rules for it, and use program funds only for the chapter’s approved homebuyer assistance purposes.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 12. California Dream for All Program [51520 - 51529] ( Chapter 12 added by Stats. 2022, Ch. 70, Sec. 43. ) ## 51523. (a) The California Dream for All Program is hereby established to provide shared appreciation loans to qualified first-time homebuyers. The program shall be limited to providing assistance to low- and moderate-income homebuyers in the purchase of owner-occupied homes. The agency, subject to the availability of funds for the purposes of this chapter, shall implement and administer the California Dream for All Program in accordance with this chapter. (b) (1) In implementing this part, the agency shall adopt policies, rules, and regulations by resolution of the board of directors of the agency and consistent with this part to achieve all of the following: (A) Provide assistance to meaningfully expand access to homeownership. (B) Expand opportunities for California households to accumulate wealth for themselves and their families. The agency shall make any necessary program adjustments consistent with the requirements of this chapter, which may include limiting the percentage of appreciation payable under the program, to ensure that design of the loan product is not an unreasonable impediment to homeowner wealth creation. (C) Maximize the number of households assisted over time by exploring and implementing methods for selling subordinate second mortgages originated pursuant to this chapter to investors in order to generate additional funding for the program. (D) Establish a revolving, shared appreciation first-time homebuyer program with the goal of eventually providing up to one billion dollars ($1,000,000,000) per year for first-time homebuyers. (E) The amount of assistance shall only be made available in conjunction with first mortgage loan financing provided by the agency, and funds available pursuant to this chapter shall also be available for interest rate buydowns and closing cost assistance for that first mortgage loan financing. Any funds made available for interest rate buydowns shall be made in conjunction with a shared appreciation loan. (F) All repayments shall be deposited into the fund for ongoing use in the program. (G) Sustainability for the agency without significantly adversely affecting its borrowing capacity or ability to meet other affordable housing or agency needs. (H) Adequate consumer protection and consumer disclosure protections. (2) Policies, rules, and regulations adopted pursuant to this part shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. (Added by Stats. 2022, Ch. 70, Sec. 43. (SB 197) Effective June 30, 2022.)
  69. 51524.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 12. California Dream for All Program [51520 - 51529] ( Chapter 12 added by Stats. 2022, Ch. 70, Sec. 43. )

    Verify source ↗

    This section creates the California Dream for All Fund in the State Treasury and directs that fund money is continuously appropriated to the agency for this chapter’s purposes and the agency’s administrative costs.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 12. California Dream for All Program [51520 - 51529] ( Chapter 12 added by Stats. 2022, Ch. 70, Sec. 43. ) ## 51524. (a) (1) There is hereby established in the State Treasury the California Dream for All Fund. (2) Notwithstanding Section 13340 of the Government Code, all moneys in the fund are continuously appropriated to the agency, without regard to fiscal years, for expenditure pursuant to this chapter and defraying administrative costs of the agency. (3) Notwithstanding Section 16305.7 of the Government Code, any interest earned or other increment derived from investments made from moneys in the fund shall be deposited in the fund. (b) Moneys deposited in the fund may include appropriations from the Legislature from the General Fund or other state fund, proceeds from the agency issuing revenue bonds for the purposes set forth in this chapter pursuant to Section 51350, the sale or issuance of any debt instrument secured by repayment of loans originated pursuant to this chapter, and repayments from the program. (Added by Stats. 2022, Ch. 70, Sec. 43. (SB 197) Effective June 30, 2022.)
  70. 51525.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 12. California Dream for All Program [51520 - 51529] ( Chapter 12 added by Stats. 2022, Ch. 70, Sec. 43. )

    Verify source ↗

    The state and the agency are not liable beyond the fund’s assets for obligations connected with it.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 12. California Dream for All Program [51520 - 51529] ( Chapter 12 added by Stats. 2022, Ch. 70, Sec. 43. ) ## 51525. The state and the agency shall not be liable beyond the assets of the fund for any obligation in connection therewith. (Added by Stats. 2022, Ch. 70, Sec. 43. (SB 197) Effective June 30, 2022.)
  71. 51526.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 12. California Dream for All Program [51520 - 51529] ( Chapter 12 added by Stats. 2022, Ch. 70, Sec. 43. )

    Verify source ↗

    The agency must report to the Legislature by January 10, 2023 and every year after that.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 12. California Dream for All Program [51520 - 51529] ( Chapter 12 added by Stats. 2022, Ch. 70, Sec. 43. ) ## 51526. (a) The agency shall, on or before January 10, 2023, and annually thereafter, furnish a report to the Legislature providing details of program implementation, including, but not be limited to, the number of loans made and the characteristics of the borrowers. (b) The report required by this section shall be submitted pursuant to Section 9795 of the Government Code. (Added by Stats. 2022, Ch. 70, Sec. 43. (SB 197) Effective June 30, 2022.)
  72. 51526.1.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 12. California Dream for All Program [51520 - 51529] ( Chapter 12 added by Stats. 2022, Ch. 70, Sec. 43. )

    Verify source ↗

    The agency must consult specified legislative staff and committees, assess the program, develop improvement options, and report its findings to the Legislature by January 31, 2026.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 12. California Dream for All Program [51520 - 51529] ( Chapter 12 added by Stats. 2022, Ch. 70, Sec. 43. ) ## 51526.1. (a) The agency, in consultation with the staff of the Legislative Analyst’s Office, the Senate Committees on Banking and Financial Institutions, Budget and Fiscal Review, and Housing, and the Assembly Committees on Banking and Finance, Budget, and Housing and Community Development, shall do all of the following: (1) Assess outcomes and lessons learned from the first two rounds of the program. (2) Provide recommendations for further improvements to the existing program. (3) Develop options for the next phase of the program, including, but not limited to, an option to expand the program to enable participation by entities such as local governments, public institutions of higher education, nonprofit organizations, school districts, community foundations, and large private employers. (b) (1) On or before January 31, 2026, the agency shall furnish a report to the Legislature detailing its assessment, options, and recommendations, pursuant to subdivision (a). (2) A report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code. (c) This section shall remain in effect only until January 1, 2027, and as of that date is repealed. (Added by Stats. 2024, Ch. 48, Sec. 19. (AB 166) Effective July 2, 2024. Repealed on January 1, 2027, by its own provisions.)
  73. 51527.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 12. California Dream for All Program [51520 - 51529] ( Chapter 12 added by Stats. 2022, Ch. 70, Sec. 43. )

    Verify source ↗

    The agency must create borrower education and disclosure materials for shared appreciation loans, and participating lenders must give borrowers access to those materials and get acknowledgment of the disclosure before closing.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 12. California Dream for All Program [51520 - 51529] ( Chapter 12 added by Stats. 2022, Ch. 70, Sec. 43. ) ## 51527. (a) (1) The agency shall develop a borrower education program and disclosure statement designed to provide a borrower with sufficient information to understand the terms of a shared appreciation loan provided pursuant to this chapter. (2) The disclosure statement required by this subdivision shall include the specific terms of the shared appreciation loan offered to the borrower. (b) (1) Before making a shared appreciation loan, a participating lender shall provide a borrower with information to access the borrower education program and disclosure statement developed pursuant to subdivision (a). (2) A participating lender shall require the borrower to acknowledge the receipt of the disclosure statement developed pursuant to subdivision (a) before closing the loan. (c) (1) The agency may use program funds to design and implement an ongoing borrower outreach program that provides regular disclosures or loan counseling services to a borrower while the borrower has a shared appreciation loan outstanding. (2) The purpose of the ongoing borrower outreach program authorized by this subdivision shall be to encourage a borrower to satisfy the shared appreciation loan in a manner that is in the best interest of the borrower. (d) (1) The agency may meet its obligations under this section by partnering or contracting with housing counselors, community organizations with expertise in housing and mortgage finance, or any other person with expertise in housing or mortgage finance. (2) In exercising its authority under this subdivision, the agency shall take reasonable efforts to ensure that any person or organization that assists the agency in meeting the agency’s obligations under this section is free of any conflicts of interests. (Added by Stats. 2022, Ch. 70, Sec. 43. (SB 197) Effective June 30, 2022.)
  74. 51528.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 12. California Dream for All Program [51520 - 51529] ( Chapter 12 added by Stats. 2022, Ch. 70, Sec. 43. )

    Verify source ↗

    The agency must evaluate ways to finance the program, consult specified stakeholders when defining the evaluation, and submit a report to the Legislature by March 1, 2024.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 12. California Dream for All Program [51520 - 51529] ( Chapter 12 added by Stats. 2022, Ch. 70, Sec. 43. ) ## 51528. (a) The agency shall evaluate options to finance the program with one billion dollars ($1,000,000,000) to two billion dollars ($2,000,000,000) annually. Options evaluated may include, but are not limited to, the issuance of revenue bonds, general obligation bonds, or other debt instruments, or other available alternatives. (b) In developing the scope of the evaluation required by this section, the agency shall consult with the State Treasurer, the Legislature, and any other relevant stakeholders. (c) On or before March 1, 2024, the agency shall submit a report on the evaluation to the Legislature in accordance with Section 9795 of the Government Code. (Added by Stats. 2023, Ch. 196, Sec. 15. (SB 143) Effective September 13, 2023.)
  75. 51529.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 12. California Dream for All Program [51520 - 51529] ( Chapter 12 added by Stats. 2022, Ch. 70, Sec. 43. )

    Verify source ↗

    Before certain program funds are disbursed, the agency must review the program terms and parameters and make adjustments to improve the program.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 12. California Dream for All Program [51520 - 51529] ( Chapter 12 added by Stats. 2022, Ch. 70, Sec. 43. ) ## 51529. Prior to the disbursement of the remainder of funding for the program appropriated in the 2022 Budget Act, and prior to the disbursement of any funding for the program that may be appropriated in the 2023 Budget Act, the agency shall review the program terms and parameters, and shall implement adjustments designed to achieve the following program improvements: (a) Defining first-generation homebuyers. (b) Targeting funds to aid first-generation homebuyers. (c) Supporting an equitable distribution of program funds in different regions of the state. (d) Prioritizing participation by homebuyers in the lower tiers of the income eligibility structure. (Added by Stats. 2023, Ch. 196, Sec. 16. (SB 143) Effective September 13, 2023.)
  76. 51530.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 13. Accessory Dwelling Unit Program [51530 - 51532] ( Chapter 13 added by Stats. 2022, Ch. 570, Sec. 11. )

    Verify source ↗

    This section defines “Homeowner,” “Program,” and “Agency” for this chapter.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 13. Accessory Dwelling Unit Program [51530 - 51532] ( Chapter 13 added by Stats. 2022, Ch. 570, Sec. 11. ) ## 51530. For purposes of this chapter: (a) “Homeowner” means an owner of a single-family residential property that does not own more than three residential properties that consist of one to four, inclusive, units. (b) “Program” means the Accessory Dwelling Unit Program administered by the agency. (c) “Agency” means the California Housing Finance Agency. (Added by Stats. 2022, Ch. 570, Sec. 11. (AB 157) Effective September 27, 2022.)
  77. 51531.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 13. Accessory Dwelling Unit Program [51530 - 51532] ( Chapter 13 added by Stats. 2022, Ch. 570, Sec. 11. )

    Verify source ↗

    The agency must convene a working group for the accessory dwelling unit program, and the group must develop recommendations and complete them by July 1, 2023.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 13. Accessory Dwelling Unit Program [51530 - 51532] ( Chapter 13 added by Stats. 2022, Ch. 570, Sec. 11. ) ## 51531. (a) The agency shall convene a working group to develop recommendations for the purposes of the program. The purpose of the program is to assist homeowners in qualifying for loans to construct accessory dwelling units and junior accessory dwelling units on their property and to increase access to capital for homeowners interested in building accessory dwelling units. (1) The working group shall include, but not be limited to, representatives from federal mortgage agencies, private lenders, community development financial institutions, community-based organizations, local housing trust funds, joint powers authorities, regional housing finance authorities, and credit unions. (2) The working group shall explore the feasibility of different options to increase program utilization, including, but not limited to, a loan loss reserve or other credit enhancements to encourage lending, and different loan products such as renovation loans, bridge loans, and second mortgages. (3) The working group shall explore different opportunities to mitigate risks for lenders, including, but not limited to, loan guarantees, mortgage insurance, managed escrow, and rental income guidelines. (4) The working group shall explore opportunities to increase outreach and education to inform homeowners about the various loan and grant products available to them. (5) The working group shall explore expanding financing options to construction costs and factory-built accessory dwelling units, including through partnerships with local agencies and qualified nonprofits. The working group shall also explore matching fund opportunities for the grants. (6) The working group shall explore different opportunities to ease constraints that limit the loan process for homeowners, including issues that are not controlled by the agency, including, but not limited to, federal lending standards and local practices. (b) The working group shall finish developing recommendations by July 1, 2023, for the agency to consider in the next update of its accessory dwelling unit guidelines. (Added by Stats. 2022, Ch. 570, Sec. 11. (AB 157) Effective September 27, 2022.)
  78. 51532.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 13. Accessory Dwelling Unit Program [51530 - 51532] ( Chapter 13 added by Stats. 2022, Ch. 570, Sec. 11. )

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    The agency must evaluate the program and report its findings to the Legislature by January 1, 2025.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 3. CALIFORNIA HOUSING FINANCE AGENCY [50900 - 51532] ( Heading of Part 3 amended (as amended by Stats. 1994, Ch. 94) by Stats. 2000, Ch. 471, Sec. 17.5. ) ## CHAPTER 13. Accessory Dwelling Unit Program [51530 - 51532] ( Chapter 13 added by Stats. 2022, Ch. 570, Sec. 11. ) ## 51532. The agency shall conduct an evaluation of the program and shall report the agency’s findings to the Legislature by no later than January 1, 2025. The report shall be submitted in compliance with Section 9795 of the Government Code. (Added by Stats. 2023, Ch. 169, Sec. 1. (AB 932) Effective January 1, 2024.)
  79. 51600.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 1. General Provisions and Definitions [51600 - 51603] ( Chapter 1 added by Stats. 1993, Ch. 115, Sec. 4. )

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    This section states legislative findings about why mortgage financing and bond-backed housing finance are needed for low- and moderate-income housing.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 1. General Provisions and Definitions [51600 - 51603] ( Chapter 1 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51600. The Legislature finds and declares as follows: (a) For reasons of prudent investment policy, California’s public and private lending institutions are not making mortgage financing available for certain single- and multifamily residential housing occupied or intended to be occupied by substantial numbers of persons and families of low and moderate income because of the perceived risks these loans entail. The absence of this financing has also caused and contributed to the deterioration of residential neighborhoods, has inhibited government in its attempts to arrest and reverse deterioration through local code enforcement programs, and has generally reduced or limited the supply of safe, decent, and sanitary housing available to persons and families of low and moderate income. (b) The absence of financing has resulted in persons and families who are not able to realize financial security through equity accumulation and psychological security through a sense of permanence and control over the direction of their lives, as well as a lack of job creation linked to housing construction or the sale of existing housing. (c) The percentage of California residents who own their own homes is considerably lower than the national average. (d) All of the factors set forth in subdivisions (a) to (c), inclusive, have hindered the state’s economy and the general well-being of the state’s populace. (e) The state has authorized state agencies, local agencies, redevelopment agencies, and housing authorities to provide financing for preservation and construction of residential structures, including single-family and multifamily residential housing, to enhance housing opportunities for persons and families of low or moderate income. However, some of these local public entities will be unable to sell bonds pursuant to that authorization on terms sufficiently favorable to enable them to make loans at less than the market-rate interest because of a lack of adequate bond security. (f) Although the agencies are empowered to sell bonds in order to raise funds for housing assistance, they may be unable to market these bonds on terms and at interest rates adequate to enable these agencies to accomplish their purposes. (g) For reasons of prudent investment policy, private lending institutions and public agencies are not making mortgage financing available for the rehabilitation of buildings identified by local jurisdictions as being potentially hazardous. (h) For reasons of prudent investment policy, private lending institutions and public agencies are not making mortgage financing available for residential housing for low- and moderate-income households in California due to an inadequate supply of reliable, consistent, and affordable mortgage guaranty insurance. (i) To provide credit enhancements for the development of new, or the purchase or refinancing of existing, low-income and moderate-income multifamily housing. (Repealed and added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
  80. 51601.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 1. General Provisions and Definitions [51600 - 51603] ( Chapter 1 added by Stats. 1993, Ch. 115, Sec. 4. )

    Verify source ↗

    The Legislature states that this part is intended to create bond and loan insurance programs for housing-related purposes.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 1. General Provisions and Definitions [51600 - 51603] ( Chapter 1 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51601. It is the intent of the Legislature in enacting this part to establish programs of bond and loan insurance for the following purposes: (a) To encourage homeownership opportunities for low- and moderate-income rental households and to encourage multifamily residential construction and rehabilitation, all of which will revitalize the state’s economy and provide security for these households. (b) To encourage and facilitate the preservation of existing housing and improve housing opportunities by reducing the risk factor for all of the following: (1) Loans to persons and families of low and moderate income for housing in older deteriorating areas and neighborhood preservation areas. (2) Bonds issued by governmental agencies for the purpose of providing housing for persons and families of low or moderate income. (3) Loans to provide housing for persons and families of low or moderate income. (4) Privately financed loans for multifamily residential housing that benefits low- and moderate-income households. (5) Construction loan loss guarantee assistance for rehabilitation of buildings in need of rehabilitation improvements, where the building has been identified by local jurisdictions as being potentially hazardous. (c) To encourage and facilitate housing opportunities for low-income and moderate-income households which might not readily be available in the private market due to, in part, location, type of housing, and income group serviced, provided, however, that the actuarial soundness of the insurance fund not be jeopardized. (d) To provide single-family and multifamily residential housing mortgage guaranty insurance. (e) To provide single-family and multifamily residential guaranty insurance for construction loans. (f) To provide credit enhancements for the development of new, or the purchase or refinancing of existing, low-income and moderate-income housing. (Repealed and added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
  81. 51601.5.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 1. General Provisions and Definitions [51600 - 51603] ( Chapter 1 added by Stats. 1993, Ch. 115, Sec. 4. )

    Verify source ↗

    The California Housing Finance Agency is described as adopting a five-year business plan and making specified funding commitments for its mortgage guaranty insurance program.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 1. General Provisions and Definitions [51600 - 51603] ( Chapter 1 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51601.5. The Legislature finds and declares the following: The California Housing Finance Agency, in administering the mortgage guaranty insurance program, as it is currently constituted in law, will adopt a new five-year business plan pursuant to board resolution at the June 9, 1993, meeting of the agency’s board of directors. The business plan will contain all of the financial resources of the agency necessary for this insurance fund to create a mortgage guaranty insurance underwriting capacity for single-family loans at one billion two hundred million dollars ($1,200,000,000) of gross insurance. In order to initiate this program, the agency will provide its 1993 commitment of eighteen million dollars ($18,000,000) as soon as reasonably practicable following the adoption of the June 9, 1993, board resolution. The agency will also commit that it will provide its 1994 pledge of eleven million dollars ($11,000,000) at its January 1994 board of directors meeting. During the five-year time period, the program will result in a significant beneficial economic impact on the state’s economy, particularly on the homebuilding and real estate resale markets. As such, the agency will remain fully committed to implementing the plan, unless the economic and fiscal expectations of the agency fail to materialize so that implementation of the plan, in whole or in part, is no longer possible without jeopardizing the fiscal integrity or the bond rating of the agency. (Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
  82. 51602.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 1. General Provisions and Definitions [51600 - 51603] ( Chapter 1 added by Stats. 1993, Ch. 115, Sec. 4. )

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    The agency must require non-discriminatory occupancy rules for covered housing, contractors and subcontractors must provide equal employment opportunity for covered housing work, and qualified developers must certify compliance.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 1. General Provisions and Definitions [51600 - 51603] ( Chapter 1 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51602. (a) The agency shall require that occupancy of housing for which a loan is insured pursuant to this part shall be open to all regardless of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, and that contractors and subcontractors engaged in the construction or rehabilitation of housing funded by a loan insured pursuant to this part shall provide an equal opportunity for employment without discrimination as to any basis listed in subdivision (a) of Section 12940 of the Government Code, as those bases are defined in Sections 12926 and 12926.1 of the Government Code, and except as otherwise provided in Section 12940 of the Government Code. (b) Notwithstanding subdivision (a), with respect to familial status, subdivision (a) shall not be construed to apply to housing for older persons, as defined in Section 12955.9 of the Government Code. With respect to familial status, nothing in subdivision (a) shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51, Section 4760, and Section 6714 of the Civil Code, and subdivisions (n), (o), and (p) of Section 12955 of the Government Code shall apply to subdivision (a). (c) A qualified developer shall certify compliance with this section and Section 50955 according to requirements specified by the pertinent criteria of the agency. (Amended (as amended by Stats. 2012, Ch. 181, Sec. 76) by Stats. 2013, Ch. 605, Sec. 45. (SB 752) Effective January 1, 2014.)
  83. 51603.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 1. General Provisions and Definitions [51600 - 51603] ( Chapter 1 added by Stats. 1993, Ch. 115, Sec. 4. )

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    This section defines key terms used in this part, including lending institutions, reserve requirements, housing categories, and the agency’s fund and officials.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 1. General Provisions and Definitions [51600 - 51603] ( Chapter 1 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51603. (a) Unless the context otherwise requires, the definitions contained in this chapter shall govern the construction of this part. These definitions shall be in addition to definitions set forth in Part 1 (commencing with Section 50000) of this division, except that, where the same term is defined in this chapter and in that part, the definition of the term contained in this chapter shall prevail. (b) As used in this part: (1) “Approved lending institution” means a qualified mortgage lender approved by the agency for participation in a program of loan insurance, including those successors and assigns of any such institution as are permitted by the agency. “Approved lending institution” shall also include the agency. (1.5) “Board” or “board of directors” means the Board of Directors of the California Housing Finance Agency. (2) “Bond reserve requirement” means an amount specified by the agency which shall, as of any particular date of computation, be at least equal to the total of both of the following: (A) Insurance benefits due and payable as of the date under contracts of bond insurance. (B) The percentage, required by the rating agencies or required to adequately provide security for the bonds insured pursuant to this part, of the sum of the aggregate insurance outstanding under contracts of bond insurance and the aggregate amounts to be insured under the agency’s commitments to insure bonds. (2.5) “Credit enhancement” means a method of reducing risk for a lender through letters of credit and bond and loan insurance. (3) “Executive director” means the Executive Director of the California Housing Finance Agency. (4) “Fund” or “insurance fund” means the California Housing Loan Insurance Fund, which is hereby created. (5) “Insurance reserve requirement” means an amount established by the agency, which shall, as of any particular date of computation, be at least equal to the total of both of the following: (A) Insurance benefits due and payable as of that date pursuant to contracts of loan insurance. (B) An amount calculated to equal any required policyholder’s surplus which would be required of a mortgage guaranty insurer under Section 12640.05 of the Insurance Code. (6) “Insured loan” means a loan insured pursuant to Chapter 4 (commencing with Section 51650). (7) “Loan-to-value limitation” means a limitation on the ratio of the original principal balance of a loan to the appraised value at the time of execution of the contract of insurance, including the estimated costs of repair and rehabilitation and sale, if any, of the property securing it. (8) “Mortgage guaranty insurance” means either of the following: (A) Insurance against financial loss by reason of nonpayment of principal, interest, and other sums agreed to be paid under the terms of any note or bond or other evidence of indebtedness secured by a mortgage, deed of trust, or other instrument constituting a first lien or charge on real estate, provided the improvement on the real estate is a residential building or a condominium unit or buildings designed for occupancy by not more than four families. (B) Insurance against financial loss by reason of nonpayment of principal, interest, and other sums agreed to be paid under the terms of any note or bond or other evidence of indebtedness secured by a mortgage, deed of trust, or other instrument constituting a junior lien or charge on real estate, provided the improvement on the real estate is a residential building or a condominium unit or buildings designed for occupancy by not more than four families. (C) Insurance against financial loss by reason of nonpayment of principal, interest, and other sums agreed to be paid under the terms of any note or bond or other evidence of indebtedness secured by a mortgage, deed of trust, or other instrument constituting a lien or charge on real estate, provided the improvement on the real estate is a building or buildings designed for occupancy by five or more families or designed to be occupied for industrial or commercial purposes. (9) “Multifamily residential housing” means an improvement on real estate which is a building or buildings containing five or more residential units. (10) “Persons and families of low or moderate income” means “persons and families of low or moderate income” as defined in Section 50093. (11) “Qualified developer” means a housing sponsor which is certified by the agency to be qualified according to experience, financial capability, and any other pertinent criteria as the fund may establish to carry out rehabilitation and new construction with loans insured pursuant to this part. (12) “Rehabilitated structure” means a residential structure which becomes eligible for an insured acquisition loan by rehabilitation conducted pursuant to rules of the agency, whether or not loan insurance is provided by the agency for that rehabilitation. (13) “Single-family residential housing” means an improvement on real estate which is a building or a condominium unit or buildings containing one to four units. (Repealed and added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
  84. 51610.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 2. Administration [51610 - 51643.5] ( Chapter 2 added by Stats. 1993, Ch. 115, Sec. 4. )

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    The agency has broad powers for implementing this part, and the fund must keep current loan-insurance statistics and include required information in the agency’s annual report.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 2. Administration [51610 - 51643.5] ( Chapter 2 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51610. (a) The agency shall, with respect to the implementation of this part, and notwithstanding any other provision of law, have the general powers set forth in Sections 51050 and 51058 and in this part and, in addition, may do any and all things necessary to carry out its purposes and exercise the powers expressly granted by this part. (b) The fund shall develop and maintain complete and current statistics and other information with respect to the loan insurance program, including, but not limited to, each of the following: (1) Mortgage arrearages, defaults, and foreclosures on insured loans. (2) Expenses incurred as a result of those arrearages, defaults, and foreclosures. (3) The extent of displacement caused by availability of insured loans. (c) The information required by subdivision (b) shall be provided in the agency’s annual report as required by Section 51622. (Repealed and added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
  85. 51611.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 2. Administration [51610 - 51643.5] ( Chapter 2 added by Stats. 1993, Ch. 115, Sec. 4. )

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    This section creates and renames the California Housing Loan Insurance Fund, lets the agency manage and invest fund money, and limits other state officers from supervising or approving fund expenditures.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 2. Administration [51610 - 51643.5] ( Chapter 2 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51611. (a) The California Housing Loan Insurance Fund is hereby created in the State Treasury. (b) The California Housing Insurance Fund is hereby renamed the California Housing Loan Insurance Fund. All references in any provision of law to the California Housing Insurance Fund shall be deemed to refer to the California Housing Loan Insurance Fund. Notwithstanding Section 13340 of the Government Code, all money in the insurance fund is hereby continuously appropriated to the agency without regard to fiscal year for the purpose of insuring loans and bonds pursuant to this part and for the purpose of defraying administrative expenses incurred by the agency in operating these programs of loan and bond insurance. All insurance premiums shall be deposited in the insurance fund. Mortgage insurance in force under certificates of insurance by the California Housing Insurance Fund shall continue in force without interruption after the effective date of this act. (c) Notwithstanding Chapter 2 (commencing with Section 12850) of Part 2.5 of Division 3 of Title 2 of the Government Code, Article 2 (commencing with Section 13320) of Chapter 3 of Part 3 of Division 3 of Title 2 of the Government Code, or any other provision of law, expenditures of the insurance fund shall not be subject to the supervision or approval of any other officer or division of state government. However, the agency’s budget respecting the insurance fund shall be prepared and reviewed in accordance with Section 50913. (d) The agency shall, from time to time, direct the Treasurer to invest moneys in the insurance fund which are not required for its current needs in eligible securities designated by the agency from among those specified in Section 16430 of the Government Code or as otherwise permitted by law. The agency may direct the Treasurer to deposit moneys in the insurance fund in interest-bearing accounts in state or national banks or other financial institutions having principal offices in this state. To the extent permitted by law, the agency may invest moneys in the fund in obligations of financial institutions, as permitted by board resolution. The agency may also require the transfer of moneys in the insurance fund to the Surplus Money Investment Fund for investment pursuant to Article 4 (commencing with Section 16470) of Chapter 3 of Part 2 of Division 4 of Title 2 of the Government Code. (Repealed and added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
  86. 51614.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 2. Administration [51610 - 51643.5] ( Chapter 2 added by Stats. 1993, Ch. 115, Sec. 4. )

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    The agency has broad power over the insurance fund and may take necessary actions, including creating task forces and advisory committees when appropriate.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 2. Administration [51610 - 51643.5] ( Chapter 2 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51614. (a) The agency is hereby vested with full power, authority, and jurisdiction over the insurance fund. The agency may perform all acts necessary or convenient in the exercise of any power, authority, or jurisdiction over the insurance fund, either in the administration thereof or in connection with the business administered under this part, as fully and completely as the governing body of a private insurance carrier. (b) The agency may create task forces and advisory committees, when appropriate and as the members deem necessary, for the purpose of obtaining advice on issues arising as a result of the agency’s activities under this part. Ex officio members of those task forces and advisory committees may include, but are not limited to, the Insurance Commissioner or his or her designee, the Director of Housing and Community Development or his or her designee, the Director of the Seismic Safety Commission or his or her designee, and the Director of Emergency Services or his or her designee. (Amended by Stats. 2013, Ch. 352, Sec. 381. (AB 1317) Effective September 26, 2013. Operative July 1, 2013, by Sec. 543 of Ch. 352.)
  87. 51615.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 2. Administration [51610 - 51643.5] ( Chapter 2 added by Stats. 1993, Ch. 115, Sec. 4. )

    Verify source ↗

    The agency must follow specified Government Code procedures when administering the insurance fund, but those provisions do not apply to rates and premiums, insurance-related bids or contracts, or other matters needed to keep the agency competitive.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 2. Administration [51610 - 51643.5] ( Chapter 2 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51615. (a) Division 10 (commencing with Section 7920.000) of Title 1 of, and Article 9 (commencing with Section 11120) of Chapter 1 of, Chapter 3.5 (commencing with Section 11340) of, Chapter 4 (commencing with Section 11370) of, and Chapter 5 (commencing with Section 11500) of, Part 1 of Division 3 of Title 2 of, the Government Code shall apply to the agency with respect to the administration of the insurance fund. (b) Notwithstanding subdivision (a), the provisions described in that subdivision shall not apply to any of the following: (1) The agency’s activities and records relating to establishing rates and premiums. (2) Bids or contracts for insurance, coinsurance, and reinsurance. (3) Other matters necessary to maintain the competitiveness of the agency in the mortgage insurance industry, including, but not limited to, the development of financial products. (Amended by Stats. 2021, Ch. 615, Sec. 265. (AB 474) Effective January 1, 2022. Operative January 1, 2023, pursuant to Sec. 463 of Stats. 2021, Ch. 615.)
  88. 51616.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 2. Administration [51610 - 51643.5] ( Chapter 2 added by Stats. 1993, Ch. 115, Sec. 4. )

    Verify source ↗

    The state is not liable beyond the assets of the insurance fund for related obligations.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 2. Administration [51610 - 51643.5] ( Chapter 2 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51616. The state shall not be liable beyond the assets of the insurance fund for any obligations in connection therewith. (Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
  89. 51620.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 2. Administration [51610 - 51643.5] ( Chapter 2 added by Stats. 1993, Ch. 115, Sec. 4. )

    Verify source ↗

    The executive director may take specified actions when running the insurance fund, including making insurance contracts, declining risky coverage, reinsuring risks, setting claim-payment rules, entering fund-related obligations, investing fund money, and doing other related acts.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 2. Administration [51610 - 51643.5] ( Chapter 2 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51620. In conducting the business and affairs of the insurance fund, the executive director may do any of the following: (a) Enter into contracts of insurance. (b) Decline to insure any risk in which the minimum requirements of the insurance fund are not complied with, or which is beyond the safe carrying of the insurance fund. (c) Reinsure any risk or any part thereof. (d) Make rules for the settlement of claims against the insurance fund and determine to whom and through whom the payments are to be made. (e) Enter into any contracts or obligations relating to the fund. (f) Invest and reinvest the moneys belonging to the fund as provided by this part or Part 3 (commencing with Section 50900). (g) Conduct all business and affairs and perform all acts relating to the fund whether or not specifically designated in this part. (Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
  90. 51622.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 2. Administration [51610 - 51643.5] ( Chapter 2 added by Stats. 1993, Ch. 115, Sec. 4. )

    Verify source ↗

    The agency may hire private persons or public agencies to review and help implement this part, and it must prepare and share periodic reports and an annual audit-related engagement.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 2. Administration [51610 - 51643.5] ( Chapter 2 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51622. (a) The agency may contract with any private person or public agency for review of the administration of this part and for assistance in implementing this part. (b) The agency shall prepare a biennial report on the condition of the program of loan and bond insurance authorized by this part. The report of the evaluation shall include an evaluation of program effectiveness in relation to cost and shall include recommendations and suggested legislation for the improvement of the program, if any. The agency shall obtain an annual agreed-upon procedures engagement of the insurance fund’s books and accounts with respect to its activities under this part to be made at least once for each calendar year by an independent certified public accountant. A copy of the annual agreed-upon procedures engagement and biennial report shall be transmitted to the Governor, to the chairperson and vice-chairperson of the Senate and Assembly housing policy committees, the Senate and Assembly budget committees, and the Joint Legislative Budget Committee, and made available for review by interested parties no later than November 1 of each year for the annual agreed-upon procedures engagement and November 1 biennially for the program evaluation report. (c) For purposes of this section, the agreed-upon procedures engagement shall be conducted in accordance with the Statements on Standards for Attestation Engagements Number 10, as issued by the American Institute of Certified Public Accountants. (Amended by Stats. 2016, Ch. 32, Sec. 85. (SB 837) Effective June 27, 2016.)
  91. 51623.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 2. Administration [51610 - 51643.5] ( Chapter 2 added by Stats. 1993, Ch. 115, Sec. 4. )

    Verify source ↗

    The California Housing Loan Insurance Fund continues in existence, insurance premiums must be deposited into it, and the agency administers it for loan and bond insurance purposes.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 2. Administration [51610 - 51643.5] ( Chapter 2 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51623. (a) The California Housing Loan Insurance Fund, as provided for pursuant to Section 51653 as it read prior to the effective date of the act that adds this part, is continued in existence, and, pursuant to Section 51603, is referred to as the insurance fund. Notwithstanding Section 13340 of the Government Code, all money in the insurance fund is hereby continuously appropriated to the agency without regard to fiscal year for the purpose of insuring loans and bonds pursuant to this part and for the purpose of defraying administrative expenses incurred by the fund in operating those programs of loan and bond insurance. All insurance premiums shall be deposited in the insurance fund. (b) The insurance fund shall be administered by the agency for the purpose of insuring loans and bonds as provided in this part. Any appropriation made therefrom or thereto before the effective date of this section shall continue to be available for the purposes for which it was made. (Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
  92. 51625.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 2. Administration [51610 - 51643.5] ( Chapter 2 added by Stats. 1993, Ch. 115, Sec. 4. )

    Verify source ↗

    The agency must invest excess insurance fund money, deposit any investment returns back into the insurance fund, and generally keep insurance fund money from being transferred to other funds, except the Surplus Money Investment Fund.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 2. Administration [51610 - 51643.5] ( Chapter 2 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51625. (a) The agency shall cause all moneys in the insurance fund which are in excess of current requirements to be invested and reinvested, from time to time, in the same manner as provided for private insurance carriers pursuant to Article 3 (commencing with Section 1170) of Chapter 2 of Part 2 of Division 1 of the Insurance Code. (b) All interest or other increment resulting from the investment shall be deposited in the insurance fund, notwithstanding Section 16305.7 of the Government Code. Moneys in the insurance fund shall not be subject to transfer to any other fund pursuant to Part 2 (commencing with Section 16300) of Division 4 of Title 2 of the Government Code, except the Surplus Money Investment Fund. (Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
  93. 51626.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 2. Administration [51610 - 51643.5] ( Chapter 2 added by Stats. 1993, Ch. 115, Sec. 4. )

    Verify source ↗

    The insurance fund must be organized as a public enterprise fund.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 2. Administration [51610 - 51643.5] ( Chapter 2 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51626. The insurance fund shall be organized as a public enterprise fund. (Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
  94. 51627.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 2. Administration [51610 - 51643.5] ( Chapter 2 added by Stats. 1993, Ch. 115, Sec. 4. )

    Verify source ↗

    The insurance fund’s assets may be used to pay insurance losses and the salaries and other expenses charged to the fund under this part.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 2. Administration [51610 - 51643.5] ( Chapter 2 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51627. The assets of the insurance fund shall be applicable to the payment of losses sustained on account of insurance and to the payment of the salaries and other expenses charged against it in accordance with this part. (Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
  95. 51628.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 2. Administration [51610 - 51643.5] ( Chapter 2 added by Stats. 1993, Ch. 115, Sec. 4. )

    Verify source ↗

    The agency must, after a reasonable time to establish a business, become competitive with other insurers.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 2. Administration [51610 - 51643.5] ( Chapter 2 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51628. The agency shall, after a reasonable time during which it may establish a business, be competitive with other insurers, and it is the intent of the Legislature that the insurance fund shall ultimately become neither more nor less than self-supporting. However, this section shall not be construed to preclude the insurance fund from operating in a manner that will permit the agency to create additional reserves from operations in order that the agency can maximize its insurance capacity. (Amended by Stats. 2003, Ch. 553, Sec. 5. Effective January 1, 2004.)
  96. 51632.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 2. Administration [51610 - 51643.5] ( Chapter 2 added by Stats. 1993, Ch. 115, Sec. 4. )

    Verify source ↗

    Claims arising from agency activities for the insurance fund under this part are exempt from specified Government Code provisions.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 2. Administration [51610 - 51643.5] ( Chapter 2 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51632. Claims arising out of activities of the agency on behalf of the insurance fund pursuant to this part are exempted from the provisions of Part 3 (commencing with Section 900) of Division 3.6 of Title 1 of the Government Code. (Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
  97. 51636.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 2. Administration [51610 - 51643.5] ( Chapter 2 added by Stats. 1993, Ch. 115, Sec. 4. )

    Verify source ↗

    The agency is generally exempt from Government Code provisions that apply to state agencies, unless this part provides otherwise or the section specifically names the fund as an agency subject to the provision.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 2. Administration [51610 - 51643.5] ( Chapter 2 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51636. Except as provided in this part, the agency, on behalf of the insurance fund pursuant to this part, shall not be subject to the provisions of the Government Code made applicable to state agencies generally or collectively, unless the section specifically names the fund as an agency to which the provision applies. (Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
  98. 51637.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 2. Administration [51610 - 51643.5] ( Chapter 2 added by Stats. 1993, Ch. 115, Sec. 4. )

    Verify source ↗

    The agency must follow specified Government Code personnel management rules for administration of the insurance fund, may designate up to five insurance fund positions as managerial, and must consider its need to attract and keep qualified individuals when making those designations.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 2. Administration [51610 - 51643.5] ( Chapter 2 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51637. With respect to the administration of the insurance fund, the agency shall be subject to the provisions of Chapter 10.3 (commencing with Section 3512) of Division 4 of Title 1 of, and Division 5 (commencing with Section 18000) of Title 2 of, the Government Code, and any other personnel management provisions in law that are generally applicable to state employees. Notwithstanding subdivision (e) of Section 3513 of the Government Code, up to five positions of the insurance fund of the agency may be designated as managerial under Section 18801.1 of the Government Code. All other position designations in the insurance fund of the agency are subject to Sections 3513 and 18801.1 of the Government Code. In making these designations, consideration shall be given to the agency’s need and continued ability to attract and maintain qualified individuals within the insurance fund. (Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
  99. 51639.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 2. Administration [51610 - 51643.5] ( Chapter 2 added by Stats. 1993, Ch. 115, Sec. 4. )

    Verify source ↗

    The agency must set up reserve accounts for certain insurance losses and must not withdraw funds below the insurance reserve requirement, except to satisfy loan-insurance liabilities.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 2. Administration [51610 - 51643.5] ( Chapter 2 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51639. The agency shall establish reserve accounts for unearned premiums, losses, and potential catastrophic losses caused by economic cycles. The agency shall not cause sums to be withdrawn from the loan insurance reserve account in amounts which would reduce the moneys therein to less than the insurance reserve requirement, except as necessary to satisfy liabilities arising under contracts of loan insurance. In the event that the loan insurance reserve account is reduced to less than the insurance reserve requirement, the agency shall cease making commitments for, and contracts of, insurance until the loan insurance reserve account has been restored to satisfy that requirement. (Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
  100. 51640.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 2. Administration [51610 - 51643.5] ( Chapter 2 added by Stats. 1993, Ch. 115, Sec. 4. )

    Verify source ↗

    The agency must keep the bond insurance reserve account at or above the bond reserve requirement, limit withdrawals that would drop it below that level (except to satisfy bond insurance liabilities), and stop making bond insurance contracts if the account falls below the requirement until it is restored.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 2. Administration [51610 - 51643.5] ( Chapter 2 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51640. There is hereby continued in existence a bond insurance reserve account in the insurance fund to secure commitments under contracts to insure bonds. The agency shall take all reasonable steps to ensure that the bond reserve account is continuously maintained at not less than the bond reserve requirement. The agency shall not cause sums to be withdrawn from the bond insurance reserve account in amounts which would reduce the moneys therein to less than the bond reserve requirement, except as necessary to satisfy liabilities arising under contracts of bond insurance. In the event that the bond insurance reserve account is reduced to less than the bond reserve requirement, the agency shall cease making contracts of bond insurance until the account has been restored to satisfy that requirement. (Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
  101. 51641.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 2. Administration [51610 - 51643.5] ( Chapter 2 added by Stats. 1993, Ch. 115, Sec. 4. )

    Verify source ↗

    The agency may create additional accounts within the insurance fund when it considers them necessary or convenient for carrying out this part.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 2. Administration [51610 - 51643.5] ( Chapter 2 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51641. The agency may create other accounts within the insurance fund as it deems are necessary or convenient to carry out the purposes of this part. (Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
  102. 51642.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 2. Administration [51610 - 51643.5] ( Chapter 2 added by Stats. 1993, Ch. 115, Sec. 4. )

    Verify source ↗

    This section limits how the agency, the state, and insurance-fund money may be used for loan and bond insurance, and requires the agency to create a separate reserve account for multifamily housing insurance.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 2. Administration [51610 - 51643.5] ( Chapter 2 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51642. (a) The obligation of the agency and of the state to pay any insurance benefit pursuant to contracts of insurance insuring loans or bonds shall not exceed amounts deposited in the insurance fund that are made available therefor under the respective contracts of insurance. Nothing in this part shall require the Legislature to appropriate moneys from the General Fund in the State Treasury to the insurance fund on account of these obligations. The insurance of loans or bonds under this part shall not directly, indirectly, or contingently obligate the state or any political subdivision thereof to levy or to pledge any form of taxation whatever therefor or to make any appropriation for their payment. (b) All contracts of insurance insuring loans or bonds pursuant to this part shall contain on the face thereof a statement to the following effect: “Neither the faith and credit nor the taxing power of the State of California is pledged to the payment of the principal of or interest on this contract of insurance.” (c) Moneys in the insurance fund received from the proceeds of bonds issued pursuant to the California Housing and Jobs Investment Bond Act may not be transferred to any other fund of the agency except as necessary to pay the expenses of operating the program of loan and bond insurance for single-family residential housing authorized by this part, nor shall the agency utilize any of these moneys under the direction and control of the agency, other than moneys in the insurance fund, to satisfy liabilities arising from contracts of insurance authorized by this part. (d) Moneys in the insurance fund may not be transferred to any other fund of the agency except as necessary to pay the expenses of operating the program of loan and bond insurance authorized by this part, nor shall the agency utilize any moneys under the direction and control of the agency to satisfy liabilities arising from contracts of insurance authorized by this part. (e) The agency, on behalf of, or for the benefit of, the California Housing Loan Insurance Fund, may borrow or receive moneys from the agency or from any federal, state, or local agency or private entity, or may pledge funds from the California Housing Finance Fund, in order to create or support reserves in the insurance fund for loan or bond insurance as provided in this part and as authorized by resolution of the board of directors. (f) The agency shall create a separate reserve account for insuring mortgages of multifamily housing developments which shall consist of all of the following: (1) Funds transferred by redevelopment agencies pursuant to Section 33334.2. The use of these funds shall be consistent with Section 33334.4. (2) Any other funds available for insuring mortgages of multifamily housing developments as may be made available for that purpose by law and as provided in this part. (g) Reserve funds for the single-family mortgage guarantee insurance program and the multifamily residential mortgage guaranty insurance program shall not be commingled. (Amended by Stats. 2003, Ch. 553, Sec. 6. Effective January 1, 2004.)
  103. 51643.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 2. Administration [51610 - 51643.5] ( Chapter 2 added by Stats. 1993, Ch. 115, Sec. 4. )

    Verify source ↗

    The agency does not have to pay any tax or assessment on property owned by the fund or on income from that property.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 2. Administration [51610 - 51643.5] ( Chapter 2 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51643. The agency shall not be required to pay any tax or assessment on any property owned by the fund or upon the income therefrom. (Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
  104. 51643.5.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 2. Administration [51610 - 51643.5] ( Chapter 2 added by Stats. 1993, Ch. 115, Sec. 4. )

    Verify source ↗

    The agency must follow the same reserve certification requirements as certain licensed mortgage guaranty insurers, and it is otherwise not subject to the Insurance Code for operating the insurance fund except as this part provides.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 2. Administration [51610 - 51643.5] ( Chapter 2 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51643.5. (a) The agency shall be subject to, and comply with, the same reserve certification requirements as mortgage guaranty insurers who are licensed pursuant to Chapter 2A (commencing with Section 12640.01) of Part 6 of Division 2 of the Insurance Code. (b) The agency shall not otherwise be subject to the Insurance Code with respect to the operation of the insurance fund, except as provided in this part. (Amended by Stats. 2003, Ch. 553, Sec. 7. Effective January 1, 2004.)
  105. 51645.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 3. Program Priorities [51645 - 51648] ( Chapter 3 added by Stats. 1993, Ch. 115, Sec. 4. )

    Verify source ↗

    The agency must establish priorities for allocating loan-insurance assistance.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 3. Program Priorities [51645 - 51648] ( Chapter 3 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51645. The agency shall establish priorities for the allocation of loan-insurance assistance in accordance with the purposes and general provisions of Chapter 2 (commencing with Section 50950) of Part 3 of this division and Article 6 (commencing with Section 51225) of Chapter 5 of Part 3 of this division, in compliance with the needs identified in the California Statewide Housing Plan, and as provided in this part. (Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
  106. 51647.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 3. Program Priorities [51645 - 51648] ( Chapter 3 added by Stats. 1993, Ch. 115, Sec. 4. )

    Verify source ↗

    The agency must keep separate insurance-fund accounts for the single-family and multifamily mortgage guaranty insurance programs, and each program must remain actuarially sound and funded through separate insurance funds.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 3. Program Priorities [51645 - 51648] ( Chapter 3 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51647. The agency shall establish and maintain separate accounts in the insurance fund for a single-family mortgage guaranty insurance program and a multifamily residential mortgage guaranty insurance program. Each program shall be actuarially sound and shall be capitalized through separate insurance funds. (Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
  107. 51648.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 3. Program Priorities [51645 - 51648] ( Chapter 3 added by Stats. 1993, Ch. 115, Sec. 4. )

    Verify source ↗

    The agency must make efforts to distribute insurance fairly by region and focus housing opportunities on certain households, while maintaining the fund’s actuarial soundness.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 3. Program Priorities [51645 - 51648] ( Chapter 3 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51648. While maintaining the actuarial soundness of the fund, the agency shall make efforts to do both of the following: (a) Equitably distribute insurance based on a regionalized basis, weighted in accordance with the geographic distribution of the state’s population. (b) Focus on housing opportunities that benefit any of the following: (1) Households with incomes at or below area median income. (2) Households that require mortgages at or above 95 percent of the price of the home. (3) Households that are participating in locally administered housing programs. (Amended by Stats. 2003, Ch. 553, Sec. 9. Effective January 1, 2004.)
  108. 51650.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 4. Loan Insurance [51650 - 51662] ( Chapter 4 added by Stats. 1993, Ch. 115, Sec. 4. )

    Verify source ↗

    Borrowers must meet ownership, repayment, and income-eligibility requirements to qualify for loan insurance; the agency may add requirements, insure loans based on certification, and must report by January 1, 2009 on certain programs.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 4. Loan Insurance [51650 - 51662] ( Chapter 4 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51650. (a) (1) To be qualified for loan insurance, a borrower shall be, or by reason of a loan insured pursuant to this part shall become, the owner of a multifamily rental housing development or a single-family residential structure for which an insured loan is authorized, and shall be able to bear the usual expenses of maintaining the housing development, development, or structure and repay the loan. (2) To be qualified for loan insurance on a single-family residential housing unit, the borrower shall also do either of the following: (A) Qualify as a person or family of low or moderate income, as that term is defined in Section 51603. (B) Until January 1, 2011, otherwise meet the requirements for participation in an affordable housing program or product offered by the Federal National Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Association (Freddie Mac). (3) The agency may, by resolution, establish additional requirements that it deems necessary to accomplish the purposes of this part. (b) For the purpose of increasing the efficiency and minimizing the cost of the loan insurance program, the agency may insure or issue commitments to insure loans upon the certification of an officer of an approved lending institution that the borrower is qualified for loan insurance according to eligibility requirements specified by the agency. (c) No later than January 1, 2009, the agency shall report to the chairs of the housing committees of the Senate and the Assembly on the types of programs that were offered pursuant to subparagraph (B) of paragraph (2) of subdivision (a). (Amended by Stats. 2003, Ch. 553, Sec. 10. Effective January 1, 2004.)
  109. 51651.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 4. Loan Insurance [51650 - 51662] ( Chapter 4 added by Stats. 1993, Ch. 115, Sec. 4. )

    Verify source ↗

    The agency must set the insurable percentage of outstanding principal for each loan category, and it may insure certain mortgage- or deed-secured loans.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 4. Loan Insurance [51650 - 51662] ( Chapter 4 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51651. (a) The agency shall specify the percentage of the outstanding principal indebtedness that may be insured under this part with respect to each category of loan authorized to be insured under this part. (b) The agency may insure loans secured by mortgages or deeds of trust of first or second priority. (Amended by Stats. 2003, Ch. 553, Sec. 11. Effective January 1, 2004.)
  110. 51652.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 4. Loan Insurance [51650 - 51662] ( Chapter 4 added by Stats. 1993, Ch. 115, Sec. 4. )

    Verify source ↗

    Loans insured under this part must satisfy listed requirements, including a maximum term of 40 years, security by mortgage or deed of trust (with an exception for certain property improvement loans), and agency-set conditions for refinancing, rehabilitation, relocation payments, and insurance.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 4. Loan Insurance [51650 - 51662] ( Chapter 4 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51652. Loans insured under this part shall meet all of the following requirements: (a) The loans shall be made for a period acceptable to the agency not to exceed 40 years. (b) The loans shall be subject to maximum loan amounts for each category of loan authorized to be insured under this part. (c) The loans shall be secured by mortgages or deeds of trust, or the loan shall be wholly or partially insured or guaranteed by an agency or instrumentality of the United States, except for property improvement loans under limits established by the agency. (d) The agency may establish loan-to-value limitations for each category of loan and may set forth limitations on the further encumbrance of structures and other real property securing loans, but only to the extent necessary to prevent unreasonable impairment of the agency’s security. In no case involving refinancing and rehabilitation shall the loan have a principal obligation in an amount exceeding the sum of the estimated cost of rehabilitation, if any, and the amount required to refinance existing indebtedness secured by the property and settlement and closing costs incurred in connection therewith. (e) Loans involving the rehabilitation of residential structures shall have a principal obligation not exceeding an amount which, when added to any outstanding indebtedness constituting a lien upon the property securing the loan, creates a total outstanding indebtedness which would be reasonably secured by a mortgage of first priority on the property pursuant to subdivision (d), and as set forth by the agency. (f) Loans involving refinancing may be insured only if refinancing is necessary to permit a borrower to afford the cost of rehabilitation, to lower his or her monthly debt-to-income payments, minimize rent increases for occupants of the residential structure, where the rents would otherwise exceed affordable rents due to the expense of rehabilitation, or to achieve another purpose specified in this division. (g) With respect to loans involving the rehabilitation of a residential structure, the agency shall determine that the rehabilitation is economically feasible. For purposes of this subdivision, the economic feasibility of rehabilitation projects involving commercial space in a mixed residential and commercial structure shall be determined independently for any structure to be rehabilitated for mixed residential and commercial uses. (h) For the purpose of increasing the efficiency and minimizing the cost of the loan insurance program, the agency may insure, or issue commitments to insure, loans, upon the certification of an officer of an approved lending institution that the proposed rehabilitation conforms to requirements specified by the agency regarding economic feasibility. (i) The agency shall contract with the insured or the borrower, or both, during the term of the insurance if the agency determines that either or both of those contracts is necessary to maintain residential rentals available to lower income households at affordable rents. (j) Relocation payments shall be made to persons and families displaced in making a site or residential structure available for rehabilitation or construction financed by loans insured under this part, and relocation advisory assistance provided to those persons, as specified by Section 51063. Relocation payments for rehabilitation or construction financed by loans insured by this part, shall also be made to owners involuntarily displaced because of inability to afford costs of compliance required pursuant to this part, but any payment pursuant to Section 4623 of Title 42 of the United States Code or Section 7263 of the Government Code shall be limited to the reasonable costs of a replacement dwelling adequate to accommodate the displaced person or family without regard to whether the dwelling is otherwise comparable to the dwelling formerly occupied, less the amount received from sale of the dwelling. Relocation payments may be made from the proceeds of insured loans as authorized by the agency. (k) The residential structure for which a loan is insured pursuant to this part shall be insured against loss due to fire and other causes, as provided by the agency. ( l) Any other terms and conditions as the agency determines are necessary to further the purposes of this part. (Amended by Stats. 2003, Ch. 553, Sec. 12. Effective January 1, 2004.)
  111. 51653.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 4. Loan Insurance [51650 - 51662] ( Chapter 4 added by Stats. 1993, Ch. 115, Sec. 4. )

    Verify source ↗

    A qualifying rental housing development financed by insured mortgages is exempt from local bans on condominium conversion and from rent control, subject to the stated exception for certain lower-income units.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 4. Loan Insurance [51650 - 51662] ( Chapter 4 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51653. Notwithstanding any other provision of law, any rental housing development which is financed from mortgages insured pursuant to this part is exempt from both of the following: (a) Any local government prohibitions against condominium conversion any time after 10 years from the date a certificate of occupancy is issued. Any condominium conversion shall be made in accordance with the requirements of Article 2.5 (commencing with Section 66452.50) of Chapter 3 of Division 2 of Title 7 of the Government Code. (b) Any rent control, except for units made available to lower income households as provided pursuant to subdivision (b) of Section 51226. (Repealed and added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
  112. 51654.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 4. Loan Insurance [51650 - 51662] ( Chapter 4 added by Stats. 1993, Ch. 115, Sec. 4. )

    Verify source ↗

    The agency may provide insurance for certain qualifying loans under this part.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 4. Loan Insurance [51650 - 51662] ( Chapter 4 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51654. The agency may provide insurance pursuant to this part for all of the following: (a) Loans for residential structures that will be occupied primarily by persons and families of low or moderate income. (b) Loans for privately or publicly financed rental housing developments that will benefit lower income households. “Privately financed rental housing development,” as used in this subdivision, includes rental housing developments financed by local public entities, as defined in Section 50079. (c) Loans that otherwise meet the requirements for participation in an affordable housing program or product offered by the Federal National Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Association (Freddie Mac). (Amended by Stats. 2003, Ch. 553, Sec. 13. Effective January 1, 2004.)
  113. 51655.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 4. Loan Insurance [51650 - 51662] ( Chapter 4 added by Stats. 1993, Ch. 115, Sec. 4. )

    Verify source ↗

    The agency may insure or guarantee loans made by qualified mortgage lenders, but only subject to this part and for the purposes described in Section 51320.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 4. Loan Insurance [51650 - 51662] ( Chapter 4 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51655. Subject to this part, the agency may insure or guarantee loans made by qualified mortgage lenders for the purposes described in Section 51320. (Repealed and added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
  114. 51656.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 4. Loan Insurance [51650 - 51662] ( Chapter 4 added by Stats. 1993, Ch. 115, Sec. 4. )

    Verify source ↗

    The agency may establish a reverse mortgage insurance program if the board authorizes it by resolution.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 4. Loan Insurance [51650 - 51662] ( Chapter 4 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51656. Notwithstanding any other provision of this part, the agency may establish a program of insuring reverse mortgages as authorized by resolution of the board. (Repealed and added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
  115. 51657.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 4. Loan Insurance [51650 - 51662] ( Chapter 4 added by Stats. 1993, Ch. 115, Sec. 4. )

    Verify source ↗

    The agency must set insurance premium rates, may revise them after public hearings, and may set other necessary charges. Approved lending institutions must remit premiums at intervals the agency specifies.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 4. Loan Insurance [51650 - 51662] ( Chapter 4 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51657. (a) The agency shall establish, and may from time to time revise, after public hearings, a schedule of insurance premium rates. The premiums may vary according to the category of the loan and the degree of risk related to the loan. Premiums shall be calculated in an amount which, when added to the other revenues of the insurance program, will be adequate to defray losses occasioned by defaults and the operating expenses of the program, to repay amounts advanced to the agency for purposes of this part, and gradually to expand the insurance availability of the program. Approved lending institutions shall remit premiums to the fund at intervals specified by the agency. (b) The agency may prescribe other charges that it finds necessary, including service charges and appraisal, inspection, and other fees. (Repealed and added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
  116. 51658.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 4. Loan Insurance [51650 - 51662] ( Chapter 4 added by Stats. 1993, Ch. 115, Sec. 4. )

    Verify source ↗

    The agency must set procedures for approved lending institutions when a default occurs on an insured loan, and it may require foreclosure or related actions before a claim is submitted.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 4. Loan Insurance [51650 - 51662] ( Chapter 4 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51658. (a) The agency shall establish procedures to be followed by approved lending institutions in the event of default on a loan insured under this part. The agency may require that, prior to submitting a claim, an approved lending institution shall foreclose or exercise a power of sale and take possession of the property or otherwise acquire title and possession of the property within the time specified by the agency. The agency may, upon submission of the claim, pursue one of the following alternatives: (1) Pay the approved lending institution the benefit of the insurance. (2) Upon conveyance to the agency of all the right, title, and interest of the approved lending institution in the foreclosed property and the assignment of all claims of the approved lending institution against the defaulting borrower to the agency, pay to the qualified mortgage lender the sum of the unpaid principal balance of the loan, foreclosure costs, accrued interest, and other costs defined by contract. (3) Pay a partial claim prior to foreclosure by agreement with the insured. (b) In any case in which the agency has insured only a portion of the outstanding principal indebtedness of a loan, it may further provide that not more than an equivalent percentage of the total accrued interest and costs shall be payable by the agency pursuant to this section in the event of a default. (Repealed and added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
  117. 51659.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 4. Loan Insurance [51650 - 51662] ( Chapter 4 added by Stats. 1993, Ch. 115, Sec. 4. )

    Verify source ↗

    If an insured loan that is not secured by a first mortgage goes into default, the agency may acquire the loan and any related security instead of proceeding under Section 51658.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 4. Loan Insurance [51650 - 51662] ( Chapter 4 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51659. In the event of a default on an insured loan not secured by a first mortgage, the agency may, in lieu of proceeding under Section 51658, acquire the insured loan and any security therefor upon payment to the approved lending institution of an amount equal to the unpaid principal balance of the loan, accrued interest, and other costs that the agency finds are fair, reasonable, and authorized. (Repealed and added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
  118. 51660.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 4. Loan Insurance [51650 - 51662] ( Chapter 4 added by Stats. 1993, Ch. 115, Sec. 4. )

    Verify source ↗

    The agency may start coinsurance or reinsurance programs and may buy reinsurance from specified public or private entities, and it may coinsure or reinsure eligible loans.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 4. Loan Insurance [51650 - 51662] ( Chapter 4 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51660. The agency may initiate programs of coinsurance or reinsurance with, and may procure reinsurance from, any state agency, local agency, agency of the United States, or private mortgage insurer in order to accomplish more effectively the purposes of this part. The agency may coinsure or reinsure loans made or originated by approved lending institutions which are otherwise insurable under this part. (Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
  119. 51661.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 4. Loan Insurance [51650 - 51662] ( Chapter 4 added by Stats. 1993, Ch. 115, Sec. 4. )

    Verify source ↗

    The agency may require homeownership counseling and training courses as a condition for insuring certain residential purchase or refinance loans.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 4. Loan Insurance [51650 - 51662] ( Chapter 4 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51661. The agency may provide for, and require attendance at, homeownership counseling and training courses as a condition to the insurance of loans for the purchase or refinancing of residential structures under this part. (Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
  120. 51662.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 4. Loan Insurance [51650 - 51662] ( Chapter 4 added by Stats. 1993, Ch. 115, Sec. 4. )

    Verify source ↗

    The agency may sue to protect or enforce rights given to it, and it may bid on, buy, or otherwise take possession of property sold at foreclosure or similar sales.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 4. Loan Insurance [51650 - 51662] ( Chapter 4 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51662. The agency may commence any action to protect or enforce any right conferred upon it by any law, mortgage, contract of insurance, or any other agreement. The agency may bid for and purchase property sold in satisfaction thereof at any foreclosure or other sale or may otherwise acquire and take possession of that property. (Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
  121. 51680.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 6. Loan Loss Guarantee Program [51680 - 51687] ( Chapter 6 added by Stats. 1993, Ch. 115, Sec. 4. )

    Verify source ↗

    The agency may run a loan loss guarantee program to encourage private lenders to make construction loans for seismic rehabilitation improvements.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 6. Loan Loss Guarantee Program [51680 - 51687] ( Chapter 6 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51680. The agency may administer a loan loss guarantee program in order to induce private lenders to make construction loans for seismic rehabilitation improvements which are designed to increase seismic structural safety in accordance with a plan developed by a civil engineer, structural engineer, or an architect for a property which has been identified by a local jurisdiction as being potentially hazardous, as defined in Chapter 12.2 (commencing with Section 8875) of Division 1 of Title 2 of the Government Code, or as being hazardous in the event of an earthquake, as defined in Article 4 (commencing with Section 19160) of Chapter 2 of Part 3 of Division 13. (Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993. Conditionally inoperative as provided in Section 51687.)
  122. 51681.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 6. Loan Loss Guarantee Program [51680 - 51687] ( Chapter 6 added by Stats. 1993, Ch. 115, Sec. 4. )

    Verify source ↗

    The agency may issue rehabilitation loan loss guarantees only for certain homes and buildings, with a waiver available for the 15% commercial-space limit in a specified retrofit program.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 6. Loan Loss Guarantee Program [51680 - 51687] ( Chapter 6 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51681. (a) Except as provided in subdivision (b), the agency shall only issue rehabilitation loan loss guarantees on single-family homes or on buildings with five or more residential units and where any commercial use in those buildings is limited to the basement and ground floors or where the commercial use occupies less than 15 percent of the total square footage of the building. (b) For the purpose of using the program enacted by this chapter in conjunction with the multifamily seismic retrofit program authorized by Section 50668.5, the 15-percent limitation on commercial space required by subdivision (a) may be waived in order to facilitate the seismic retrofit of lower income housing. (Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993. Conditionally inoperative as provided in Section 51687.)
  123. 51683.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 6. Loan Loss Guarantee Program [51680 - 51687] ( Chapter 6 added by Stats. 1993, Ch. 115, Sec. 4. )

    Verify source ↗

    The agency may issue a loan loss guarantee for 25% of a loan’s actual loss, but it cannot guarantee more than the property’s permanent loan financing amount or guarantee properties lacking required financing commitment or 20% owner equity.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 6. Loan Loss Guarantee Program [51680 - 51687] ( Chapter 6 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51683. The agency may issue a loan loss guarantee in the amount of 25 percent of the actual loss of a loan guaranteed under this section. The fund may not guarantee any loan loss in excess of the amount of permanent loan financing for the property. No guarantee shall be made for a property which does not have a binding, unconditional, permanent financing commitment from a lender acceptable to the agency, nor for a property in which the owner has less than a 20-percent equity interest. (Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993. Conditionally inoperative as provided in Section 51687.)
  124. 51684.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 6. Loan Loss Guarantee Program [51680 - 51687] ( Chapter 6 added by Stats. 1993, Ch. 115, Sec. 4. )

    Verify source ↗

    The agency must collect loan loss guarantee premiums, deposit them into the Seismic Rehabilitation Loan Loss Guarantee Account, and keep account money segregated except as allowed by the chapter.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 6. Loan Loss Guarantee Program [51680 - 51687] ( Chapter 6 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51684. (a) The agency shall collect a premium for a loan loss guarantee as provided in Section 51657. All premiums shall be deposited in the Seismic Rehabilitation Loan Loss Guarantee Account within the insurance fund, which is hereby created. (b) Premiums shall be calculated in an amount which, when added to the other revenues of the account, will be adequate to, in the following order of priority: pay losses on claims made under loan loss guarantees issued hereunder, pay actual operating costs of the program, and repay moneys transferred to the account pursuant to Section 51685. The agency is authorized to transfer from the account actual operating expenses necessary for its administration of this program. Any excess premiums shall be retained in the account and used to expand the loan loss guarantee program hereunder. (c) Moneys in the account shall be segregated from other moneys of the insurance fund and shall not be transferred from the account for any purpose, except as provided in this chapter. Loan loss guarantees issued by the agency for the benefit of either construction lenders or borrowers shall specify that only the moneys in the account are available to pay claims under loan loss guarantees and that the other assets of the insurance fund, the assets of the agency, and the assets of the State of California are not available to pay claims or damages resulting from loan loss guarantees. (Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993. Conditionally inoperative as provided in Section 51687.)
  125. 51685.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 6. Loan Loss Guarantee Program [51680 - 51687] ( Chapter 6 added by Stats. 1993, Ch. 115, Sec. 4. )

    Verify source ↗

    Money transferred to the insurance fund under this section may be used for loan loss guarantee reserves and for initial administrative expenses not covered by premium income.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 6. Loan Loss Guarantee Program [51680 - 51687] ( Chapter 6 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51685. Moneys transferred to the insurance fund under this section may be used to create reserves for loan loss guarantees authorized by this chapter and for the initial administrative expenses of the program which are not offset by premium income. (Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993. Conditionally inoperative as provided in Section 51687.)
  126. 51685.5.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 6. Loan Loss Guarantee Program [51680 - 51687] ( Chapter 6 added by Stats. 1993, Ch. 115, Sec. 4. )

    Verify source ↗

    The California Housing Insurance Fund may borrow up to $1,800,000 for a seismic rehabilitation loan loss guarantee account, and the loan must be repaid with simple interest from premium income.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 6. Loan Loss Guarantee Program [51680 - 51687] ( Chapter 6 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51685.5. (a) Notwithstanding any other provision of law, the California Housing Insurance Fund may borrow one million eight hundred thousand dollars ($1,800,000) from the Local Agency Indebtedness Fund, established pursuant to Article 6.5 (commencing with Section 16496) of Chapter 3 of Division 4 of Title 2 of the Government Code, for the purpose of establishing the Seismic Rehabilitation Loan Loss Guarantee Account within the fund as authorized by subdivision (d) of Section 51642. (b) Upon request of the agency, the Pooled Money Investment Board shall transfer from the Local Agency Indebtedness Fund amounts authorized hereunder and upon terms and conditions to which the agency and the board shall agree. Moneys borrowed hereunder shall constitute a loan, which shall be repaid with simple interest accrued at the pooled money investment rate exclusively from premium income collected by the agency for seismic rehabilitation loan loss guarantees issued under this chapter. No other moneys of the agency shall be liable for repayment of the loan from the Local Agency Indebtedness Fund. The loan authorized, along with accrued interest, shall be due and payable not later than one year from the date of expiration of the last outstanding loan loss guarantee issued, or not later than January 1, 2010, whichever comes first, or unless the Legislature extends the sunset provision of this program because of the success and continuing need for the program. (c) Moneys transferred to the agency under this section may be used to create reserves for loan loss guarantees authorized by this chapter and for the initial administrative expenses of the program which are not offset by premium income. (Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993. Conditionally inoperative as provided in Section 51687.)
  127. 51686.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 6. Loan Loss Guarantee Program [51680 - 51687] ( Chapter 6 added by Stats. 1993, Ch. 115, Sec. 4. )

    Verify source ↗

    The agency has the powers under this part to administer the program, so long as those powers are not inconsistent with this chapter.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 6. Loan Loss Guarantee Program [51680 - 51687] ( Chapter 6 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51686. In addition to the powers expressly granted by this chapter, the agency shall have all the powers granted under this part in administering this program which are not inconsistent with this chapter. (Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993. Conditionally inoperative as provided in Section 51687.)
  128. 51687.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 6. Loan Loss Guarantee Program [51680 - 51687] ( Chapter 6 added by Stats. 1993, Ch. 115, Sec. 4. )

    Verify source ↗

    This chapter becomes inoperative if money is not transferred to the fund under Section 51685.5 for the purposes in Section 51680.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 4. BOND AND LOAN INSURANCE [51600 - 51687] ( Part 4 repealed and added by Stats. 1993, Ch. 115, Sec. 4. ) ## CHAPTER 6. Loan Loss Guarantee Program [51680 - 51687] ( Chapter 6 added by Stats. 1993, Ch. 115, Sec. 4. ) ## 51687. This chapter shall be inoperative if moneys are not transferred to the fund pursuant to Section 51685.5 for the purposes defined in Section 51680. (Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993. Note: Termination clause affects Chapter 6, commencing with Section 51680.)
  129. 52000.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 1. Legislative Findings and Declarations [52000 - 52009] ( Chapter 1 added by Stats. 1979, Ch. 1069. )

    Verify source ↗

    The Legislature declares housing is vital to residents’ health, safety, and welfare, and explains why.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 1. Legislative Findings and Declarations [52000 - 52009] ( Chapter 1 added by Stats. 1979, Ch. 1069. ) ## 52000. The Legislature finds and declares that the subject of housing is of vital importance to the health, safety, and welfare of the residents of this state, for the following reasons: (a) Decent housing is an essential motivating force in helping people achieve self-fulfillment in a free and democratic society. (b) Unsanitary, unsafe, overcrowded, or congested dwelling accommodations constitute conditions which cause an increase in and spread of, disease and crime. (c) A healthy housing market is one in which residents of this state have a choice of housing opportunities and one in which the housing consumer may effectively choose within the free marketplace. (Added by Stats. 1979, Ch. 1069.)
  130. 52001.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 1. Legislative Findings and Declarations [52000 - 52009] ( Chapter 1 added by Stats. 1979, Ch. 1069. )

    Verify source ↗

    The Legislature says there is a serious housing shortage and that a public program is needed to reduce mortgage financing costs for certain single-family home purchases.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 1. Legislative Findings and Declarations [52000 - 52009] ( Chapter 1 added by Stats. 1979, Ch. 1069. ) ## 52001. The Legislature finds and declares that there exists within the state a serious shortage of decent, safe, and sanitary housing which is affordable to many persons in the state. This shortage is exacerbated during periods of rising interest rates, particularly as high interest rates have the effect of diminishing the number of otherwise creditworthy buyers from qualifying for private sector mortgage capital sources. In order to remedy this adverse effect on potential home buyers on the lower end of the purchasing spectrum, it is necessary to implement a public program to reduce the cost of mortgage financing for single-family purchases for those persons unable to compete for mortgage financing in the conventional mortgage market. (Added by Stats. 1979, Ch. 1069.)
  131. 52002.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 1. Legislative Findings and Declarations [52000 - 52009] ( Chapter 1 added by Stats. 1979, Ch. 1069. )

    Verify source ↗

    The Legislature states that counties and cities should be authorized to make long-term, low-interest loans for home construction, rehabilitation, or acquisition.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 1. Legislative Findings and Declarations [52000 - 52009] ( Chapter 1 added by Stats. 1979, Ch. 1069. ) ## 52002. The Legislature finds and declares that it is necessary and essential that counties and cities be authorized to directly or indirectly make long-term, low-interest loans to persons not presently eligible for financing through private sector lending institutions to finance construction, rehabilitation, and acquisition of homes in order to encourage investment and upgrade local areas. (Added by Stats. 1979, Ch. 1069.)
  132. 52003.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 1. Legislative Findings and Declarations [52000 - 52009] ( Chapter 1 added by Stats. 1979, Ch. 1069. )

    Verify source ↗

    The Legislature states that city and county lending programs should be targeted so they do not compete with private mortgage lenders, and that revenue bond financing for mortgage lending should be reasonably constrained.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 1. Legislative Findings and Declarations [52000 - 52009] ( Chapter 1 added by Stats. 1979, Ch. 1069. ) ## 52003. The Legislature finds and declares that in order to preserve a healthy housing market and avoid a two-tier market where publicly subsidized mortgage capital supplants mortgage capital supplied by private financial institutions, it is necessary for the lending programs of cities and counties to be sufficiently targeted to avoid competition with private sector mortgage lenders, and further that revenue bond financing of mortgage lending by cities and counties be reasonably constrained to avoid disruption of bond markets and the credit standing of the state and its political subdivisions. (Added by Stats. 1979, Ch. 1069.)
  133. 52004.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 1. Legislative Findings and Declarations [52000 - 52009] ( Chapter 1 added by Stats. 1979, Ch. 1069. )

    Verify source ↗

    The Legislature declares that the shortage of decent, safe, and sanitary housing for lower-end buyers harms the housing economy, and that public-private efforts to reduce financing costs for single-family homes serve a public purpose.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 1. Legislative Findings and Declarations [52000 - 52009] ( Chapter 1 added by Stats. 1979, Ch. 1069. ) ## 52004. The Legislature finds and declares that the present shortage of decent, safe, and sanitary housing available to potential purchasers in the lower end of the buying spectrum is particularly inimical to the health of the housing economy and, with few exceptions, beyond the capability of private enterprise acting alone to cure, and a public purpose is served by public-private efforts to reduce cost of financing single-family homes for this class of purchasers. (Added by Stats. 1979, Ch. 1069.)
  134. 52005.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 1. Legislative Findings and Declarations [52000 - 52009] ( Chapter 1 added by Stats. 1979, Ch. 1069. )

    Verify source ↗

    The Legislature states that revenue bonds under this part should complement, not compete with, private home loans.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 1. Legislative Findings and Declarations [52000 - 52009] ( Chapter 1 added by Stats. 1979, Ch. 1069. ) ## 52005. The Legislature finds and declares that the revenue bonds provided for in this part are to be used to complement and not compete with home loans made from private sector sources, so as to substantially lower the cost of single-family home financing and meet a demand for housing financing which cannot otherwise be met. (Added by Stats. 1979, Ch. 1069.)
  135. 52006.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 1. Legislative Findings and Declarations [52000 - 52009] ( Chapter 1 added by Stats. 1979, Ch. 1069. )

    Verify source ↗

    The Legislature states that authority to issue revenue bonds for home purchase financing is needed for cities and counties and serves a public purpose.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 1. Legislative Findings and Declarations [52000 - 52009] ( Chapter 1 added by Stats. 1979, Ch. 1069. ) ## 52006. The Legislature finds and declares that the authority to issue revenue bonds to aid in the financing of home purchase is needed in the cities and the counties of the state and that it is in the public interest and serves a public purpose by providing financing for decent, safe, and sanitary housing that people in the lower end of the purchasing spectrum can afford and is a function pertaining to the government and affairs of the cities and the counties of the state. (Added by Stats. 1979, Ch. 1069.)
  136. 52007.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 1. Legislative Findings and Declarations [52000 - 52009] ( Chapter 1 added by Stats. 1979, Ch. 1069. )

    Verify source ↗

    The Legislature states that basic procedures for issuing revenue bonds to finance residential housing purchases and home ownership costs are necessary and desirable.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 1. Legislative Findings and Declarations [52000 - 52009] ( Chapter 1 added by Stats. 1979, Ch. 1069. ) ## 52007. The Legislature finds and declares that the establishment of basic procedures for the issuance of revenue bonds to finance the purchase of residential housing and the costs of home ownership is necessary and desirable to provide clarity in law and direction for subsequent actions. (Added by Stats. 1979, Ch. 1069.)
  137. 52008.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 1. Legislative Findings and Declarations [52000 - 52009] ( Chapter 1 added by Stats. 1979, Ch. 1069. )

    Verify source ↗

    This section says federally assisted housing for low- or moderate-income persons is not a primary purpose of this part, but financing it is not prohibited.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 1. Legislative Findings and Declarations [52000 - 52009] ( Chapter 1 added by Stats. 1979, Ch. 1069. ) ## 52008. The Legislature finds and declares that the construction of federally assisted housing for persons and families of low or moderate income is not a primary purpose of this part. However, nothing in this part shall be deemed to prohibit financing of federally assisted housing for persons and families of low or moderate income. (Added by Stats. 1979, Ch. 1069.)
  138. 52009.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 1. Legislative Findings and Declarations [52000 - 52009] ( Chapter 1 added by Stats. 1979, Ch. 1069. )

    Verify source ↗

    The Legislature states that helping first-time homebuyers enter the housing market serves a public purpose.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 1. Legislative Findings and Declarations [52000 - 52009] ( Chapter 1 added by Stats. 1979, Ch. 1069. ) ## 52009. The Legislature finds and declares all of the following: (a) The ownership and occupancy of a home is a fundamental element in the fabric of the American way of life. (b) The rapid appreciation in the value of homes in California which has occurred and is accelerating in recent years has made it impossible for many young persons and families who have never owned their own home to obtain the necessary financing to purchase their own home. (c) Rising costs and resulting inability of first-time homebuyers to purchase their first home is inimical to the welfare of a substantial segment of the population and, with few exceptions, beyond the capability of private enterprise acting alone to cure, and a public purpose is served by facilitating the entry into the housing market of first-time homebuyers who would be unable to finance the purchase of their first home without the kind of financial assistance provided by this part. (d) Authorization for the making of home mortgages to first-time homebuyers by cities and counties under this part will enable many persons and families who are otherwise unable to do so to take out a loan for the purpose of becoming a homeowner for the first time. (Added by Stats. 1990, Ch. 1297, Sec. 1.)
  139. 52010.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 2. Definitions [52010 - 52016] ( Chapter 2 added by Stats. 1979, Ch. 1069. )

    Verify source ↗

    The chapter’s definitions control how this part is read, unless the context shows otherwise.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 2. Definitions [52010 - 52016] ( Chapter 2 added by Stats. 1979, Ch. 1069. ) ## 52010. Unless otherwise indicated by the context, the definitions contained in this chapter shall govern the construction of this part. The definitions contained in Chapter 2 (commencing with Section 50050) of Part 1 of this division shall not be applicable to this part, except as expressly and otherwise provided. (Added by Stats. 1979, Ch. 1069.)
  140. 52011.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 2. Definitions [52010 - 52016] ( Chapter 2 added by Stats. 1979, Ch. 1069. )

    Verify source ↗

    “Bonds” includes the revenue bonds authorized by this part, plus notes and other limited obligations or evidences of indebtedness payable under this part.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 2. Definitions [52010 - 52016] ( Chapter 2 added by Stats. 1979, Ch. 1069. ) ## 52011. “Bonds” means the revenue bonds authorized under this part and includes notes and any and all other limited obligations or evidences of indebtedness payable as provided in this part. (Added by Stats. 1979, Ch. 1069.)
  141. 52011.5.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 2. Definitions [52010 - 52016] ( Chapter 2 added by Stats. 1979, Ch. 1069. )

    Verify source ↗

    “City” or “county” includes a city and county, and also certain joint-powers agencies created by cities or counties for this part.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 2. Definitions [52010 - 52016] ( Chapter 2 added by Stats. 1979, Ch. 1069. ) ## 52011.5. “City” or “county” includes a city and county and also includes any agency created by a joint powers agreement under Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code entered into by cities or counties, or both, for the express purpose of the joint exercise of their powers under this part. (Amended by Stats. 1981, Ch. 1097.)
  142. 52012.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 2. Definitions [52010 - 52016] ( Chapter 2 added by Stats. 1979, Ch. 1069. )

    Verify source ↗

    “Home” is defined as certain owner-occupied real property and related dwelling units.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 2. Definitions [52010 - 52016] ( Chapter 2 added by Stats. 1979, Ch. 1069. ) ## 52012. “Home” means real property and improvements thereon consisting of a single dwelling unit and which is owned by a mortgagor who occupies or intends to occupy the unit. “Home” includes an owner-occupied condominium unit, a unit in a stock cooperative where the occupant is a shareholder, and any dwelling structure consisting of two-, three-, or four-family dwelling units, one unit of which is occupied by the owner of the units, and, which units were first occupied as homes at least five years before the mortgage with respect to the owner-occupied unit is executed. (Amended by Stats. 1987, Ch. 497, Sec. 1.)
  143. 52012.5.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 2. Definitions [52010 - 52016] ( Chapter 2 added by Stats. 1979, Ch. 1069. )

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    This section defines “first-time homebuyer” for this chapter.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 2. Definitions [52010 - 52016] ( Chapter 2 added by Stats. 1979, Ch. 1069. ) ## 52012.5. For purposes of this chapter, “first-time homebuyer” means a person who is a purchaser of an owner-occupied housing unit and who neither has, nor has had, a present ownership in a principal residence at any time during the three-year period prior to the date on which the mortgage governed by this chapter is executed. Criteria established pursuant to subdivision (c) of Section 52020.5 shall include criteria for qualification of first-time homebuyers which need not include the criteria required for qualification of other mortgagors as set forth in subdivision (d) of Section 52020.5. (Added by Stats. 1990, Ch. 1297, Sec. 2.)
  144. 52013.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 2. Definitions [52010 - 52016] ( Chapter 2 added by Stats. 1979, Ch. 1069. )

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    This section defines “home mortgage” or “mortgage” and says what kinds of loans are included or excluded.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 2. Definitions [52010 - 52016] ( Chapter 2 added by Stats. 1979, Ch. 1069. ) ## 52013. (a) “Home mortgage” or “mortgage” means an interest-bearing loan made as provided in this part to a mortgagor, whether originated in the manner provided in subdivision (a) or (b) of Section 52020 that is evidenced by a promissory note and secured by a mortgage, deed of trust, or other security instrument on a home, and that may but is not required to be additionally secured by insurance on the payment of the note for the purpose of purchasing, constructing, or improving a home that meets either of the following criteria: (1) Is newly constructed or is being rehabilitated and that, in either case, is located within an area or neighborhood in which the city or county is conducting a housing rehabilitation or code enforcement program, a neighborhood preservation area or concentrated rehabilitation area designated pursuant to this division, an area for which federal funds are being made available, or a residential rehabilitation area as defined in Section 37912. However, a loan may be made for the purchase of a newly constructed home anywhere within the city or county if the purchase is in connection with a program adopted by ordinance of the city or county the purpose of which is to increase the housing supply. (2) Is a home upon which no rehabilitation is being undertaken in connection with any financing pursuant to this part, where the purchaser will not be the first occupant, and that is located within the city or county making or purchasing the home mortgage. (b) A “home mortgage” or “mortgage” shall not include a loan to a mortgagor for the purpose of refinancing an existing obligation of the mortgagor, unless substantial rehabilitation is to be undertaken in connection with the loan. (c) This section shall become operative January 1, 2012. (Amended (as added by Stats. 2008, Ch. 283, Sec. 2) by Stats. 2009, Ch. 140, Sec. 117. (AB 1164) Effective January 1, 2010. Section operative January 1, 2012, by its own provisions.)
  145. 52013.5.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 2. Definitions [52010 - 52016] ( Chapter 2 added by Stats. 1979, Ch. 1069. )

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    This section defines “home mortgage” or “mortgage” and sets terms for certain loans, including a 5% initial payment, a possible payment postponement, and maximum term limits.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 2. Definitions [52010 - 52016] ( Chapter 2 added by Stats. 1979, Ch. 1069. ) ## 52013.5. (a) “Home mortgage” or “mortgage” means an interest-bearing loan made as provided in this part to a mortgagor, whether originated in the manner provided in subdivision (a) or (b) of Section 52020.5, which is evidenced by a promissory note and secured by a mortgage, deed of trust, or other security instrument on a home, and which may, but is not required to be, additionally secured by insurance on the payment of that note, for the purpose of purchasing, constructing, or improving a home which meets either of the following criteria: (1) Is newly constructed or is being rehabilitated and which, in either case, is located within an area or neighborhood in which the City of Gardena is conducting a housing rehabilitation or code enforcement program; a neighborhood preservation area or concentrated rehabilitation area designated pursuant to this division; an area for which federal funds are being made available; a renewal area as defined in Section 33702; or a residential rehabilitation area as defined in Section 37912; provided, however, that a loan may be made for the purchase of a newly constructed home anywhere within the City of Gardena if the purchase is in connection with a program adopted by ordinance of the City of Gardena the purpose of which is to increase the housing supply. (2) Is a home upon which no rehabilitation is being undertaken in connection with any financing pursuant to this part, where the purchaser will not be the first occupant and which is located within the City of Gardena. (b) “Home mortgage” or “mortgage” includes a loan made as provided in this part to a first-time homebuyer, as defined in Section 52012.5, which provides for the following terms: (1) The purchaser shall make an initial payment of at least 5 percent of the selling price of the property. (2) The balance of the purchase price may be amortized over a period fixed by the City of Gardena not exceeding 50 years, together with interest thereon at the rate as determined by the City of Gardena for amortization purposes. (3) The City of Gardena may, in order to allow the buyer to purchase the home selected without incurring excessive monthly payments, at the time of initial purchase, postpone the commencement of any portion of the payments for not to exceed five years. In accordance with previously established criteria for these determinations, that the buyer’s income can reasonably be expected to increase sufficiently within the five-year period to make the transition to fully amortized principal and interest payments. (4) The total term of the contract of purchase shall not exceed 40 years. The purchaser on any installment date may pay any or all installments still remaining unpaid. (5) In any individual case the City of Gardena may for good cause postpone from time to time as the City of Gardena deems proper, the payment of the whole or any part of any installment of the purchase price or interest thereon. (c) A “home mortgage” or “mortgage” shall not include a loan to a mortgagor for the purpose of refinancing an existing obligation of the mortgagor, unless substantial rehabilitation is to be undertaken in connection with that loan. (Added by Stats. 1990, Ch. 1297, Sec. 3.)
  146. 52014.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 2. Definitions [52010 - 52016] ( Chapter 2 added by Stats. 1979, Ch. 1069. )

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    This section defines “lending institution” for this chapter.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 2. Definitions [52010 - 52016] ( Chapter 2 added by Stats. 1979, Ch. 1069. ) ## 52014. “Lending institution” means any bank, trust company, savings bank, national banking association, savings and loan association, building and loan association, mortgage banker, or other financial institution or governmental agency which customarily provides service or otherwise aids in the financing of home mortgages, or any holding company for any of the foregoing. (Added by Stats. 1979, Ch. 1069.)
  147. 52015.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 2. Definitions [52010 - 52016] ( Chapter 2 added by Stats. 1979, Ch. 1069. )

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    This section defines “mortgagor” for this chapter.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 2. Definitions [52010 - 52016] ( Chapter 2 added by Stats. 1979, Ch. 1069. ) ## 52015. “Mortgagor” means a person or persons who have received a home mortgage on a home and who are deemed by a city or county conducting a program under this part to be a person or family of low or moderate income and unable to pay the amounts at which unassisted private enterprise is providing suitable, decent, safe, and sanitary housing. (Added by Stats. 1979, Ch. 1069.)
  148. 52015.5.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 2. Definitions [52010 - 52016] ( Chapter 2 added by Stats. 1979, Ch. 1069. )

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    This section defines “mortgagor” for this part of the code.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 2. Definitions [52010 - 52016] ( Chapter 2 added by Stats. 1979, Ch. 1069. ) ## 52015.5. “Mortgagor” means a person or persons who have received a home mortgage on a home and who are deemed by the City of Gardena under this part to be either a person or family of low or moderate income or a first-time homebuyer, who is unable to pay the amounts at which unassisted private enterprise is providing suitable, decent, safe, and sanitary housing. (Added by Stats. 1990, Ch. 1297, Sec. 4.)
  149. 52016.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 2. Definitions [52010 - 52016] ( Chapter 2 added by Stats. 1979, Ch. 1069. )

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    This section defines “Person” broadly to include individuals, many business entities, public bodies, and their legal representatives, agents, or assigns.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 2. Definitions [52010 - 52016] ( Chapter 2 added by Stats. 1979, Ch. 1069. ) ## 52016. “Person” means any individual, partnership, copartnership, firm, company, corporation, limited liability company, lending institution, association, joint stock company, trust, estate, political subdivision, state agency or any other legal entity, or its legal representatives, agents or assigns. (Amended by Stats. 1994, Ch. 1010, Sec. 171. Effective January 1, 1995.)
  150. 52020.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 3. Home Financing [52020 - 52023] ( Chapter 3 added by Stats. 1979, Ch. 1069. )

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    Cities and counties financing housing under this part may run home-financing programs, but they must adopt regulations, set eligibility rules, and require mortgagors to certify an intent to occupy the home for at least two years, subject to hardship exceptions.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 3. Home Financing [52020 - 52023] ( Chapter 3 added by Stats. 1979, Ch. 1069. ) ## 52020. (a) For purposes of a home financing program authorized by this part, a city or county has the following powers and duties: (1) To acquire, contract, and enter into advance commitments to acquire home mortgages made or owned by lending institutions at the purchase prices and upon the other terms and conditions as shall be determined by the city or county or other person as it may designate as its agent, to make and execute contracts with lending institutions for the origination and servicing of home mortgages, and to pay the reasonable value of services rendered under those contracts. Prior to executing any contract with a lending institution, a city or county shall adopt regulations establishing criteria for qualification of lending institutions eligible to originate and service home mortgages under home financing programs authorized by this part and shall, with respect to each home financing program, permit each qualified lending institution that transacts business in the city or county the opportunity to participate in the program on an equitable basis with other participating lending institutions. Two or more cities in the same county, a county and one or more cities within the county, or two or more adjacent counties and any number of cities within those counties may enter into an agreement to join or cooperate with one another in the exercise jointly, or otherwise, of any or all of their powers for the purpose of financing home mortgages pursuant to this part with respect to property within the boundaries of any one or more of the entities. (2) To make loans to lending institutions under terms and conditions that, in addition to other provisions as determined by the city or county, require the lending institutions to use all of the net proceeds thereof, directly or indirectly, for the making of home mortgages in an aggregate principal amount equal to the amount of the net proceeds. (3) To establish, by rules or regulations, in resolutions relating to any issuance of bonds, or in any documents relating to the issuance, standards and requirements applicable to the purchase of home mortgages or the making of loans to lending institutions as the city or county deems necessary or desirable to effectuate the purposes of this part, which may include without limitation any of the following: (A) The time within which lending institutions are required to make commitments and disbursements for home mortgages. (B) The location and other characteristics of homes to be financed by home mortgages. (C) The terms and conditions of home mortgages to be acquired. (D) The amounts and types of any insurance coverage required on homes, home mortgages, and bonds. (E) The representations and warranties of lending institutions confirming compliance with the standards and requirements. (F) Restrictions as to interest rate and other terms of home mortgages or the return realized therefrom by lending institutions. (G) The type and amount of collateral security to be provided to assure repayment of any loans from the city or county and to assure repayment of bonds. (H) Any other matters related to the purchase of home mortgages or the making of loans to lending institutions as deemed relevant by the city or county. (4) To require from each lending institution from which home mortgages are purchased or to which loans are made the submission of evidence satisfactory to the city or county of the ability and intention of the lending institution to make home mortgages, and the submission, within the time specified by the city or county for making disbursements for home mortgages, of evidence satisfactory to the city or county of the making of home mortgages and of compliance with any standards and requirements established by it. (b) Each city or county that finances housing pursuant to this part shall designate a person or entity to administer the program. (c) Each city or county that finances housing pursuant to this part shall adopt regulations establishing criteria for qualification of persons and families, which may differ among different cities or counties to reflect varying economic and housing conditions. In developing these criteria, factors similar to the following shall be taken into consideration: (1) The amount of the income of the person or family that is available for housing needs. (2) The size of the household. (3) The costs and condition of available housing. (4) The eligibility of the persons or families for federal housing assistance of any type. (d) (1) Criteria for qualification of persons and families pursuant to this section shall include a maximum household income, which maximum shall not exceed the following: (A) One hundred twenty percent of the median household income for mortgages made for improving a home or for homes where the purchaser will be the first occupant. Upon the resale of a home for which financing was originally provided under this paragraph, the maximum income of persons and families also shall be 120 percent of the median household income. (B) One hundred twenty percent of the median household income for mortgages where the purchaser will not be the first occupant. However, the city or county shall ensure that no less than 50 percent of the funds allocated for home mortgages where the purchaser will not be the first occupant shall be for households whose income does not exceed 80 percent of that median household income. However, the legislative body of the city or county may, by resolution, increase this income limitation to 90 percent of median household income if the legislative body finds that there are insufficient numbers of creditworthy persons whose income does not exceed 80 percent of median household income. The resolution is final and conclusive as to the findings required by this paragraph. (C) One hundred fifty percent of the median household income for mortgages made for improving a home or for homes where the purchaser will be the first occupant in any city, the entire area of which, or in any county in which a portion of the county, is designated by the United States Department of Commerce, Economic Development Administration as a special impact area within a Title IV redevelopment area, pursuant to Section 401 of the federal Public Works and Economic Development Act of 1965, as amended, and that is eligible for Urban Development Action Grant funds under the current distress standards established for cities and counties by the Secretary of the United States Department of Housing and Urban Development pursuant to Section 119 of the Housing and Community Development Act of 1974, if the homes purchased or improved are situated within the boundaries of a special impact area as defined by the Economic Development Administration, and that designation is in effect on the date of sale of revenue bonds issued under this part. (2) As used in this subdivision, “median household income” means the highest of (A) statewide median household income, (B) countywide median household income, or (C) median family income for an area, as determined by the United States Department of Housing and Urban Development, with respect to either a standard metropolitan statistical area or an area outside of a standard metropolitan statistical area. (e) (1) Subdivision (d) shall not apply with respect to home finance programs funded with amounts made available by the issuance of revenue bonds that, for federal tax law purposes, are bonds refunding qualified mortgage bonds issued before January 1, 1987, and that satisfy the requirements of subdivision (a) of Section 1313 of the federal Tax Reform Act of 1986. With respect to these programs, the maximum household income for qualification of persons and families pursuant to this section shall be the following: (A) One hundred fifty percent of the median household income for mortgages made for improving a home or for homes where the purchaser will be the first occupant. Upon the resale of a home for which financing was originally provided under this paragraph, the maximum income of persons and families also shall be 150 percent of the median household income. For purposes of this paragraph, a mortgage made for improving a home includes a home improvement loan as defined in Section 143 of Title 26 of the United States Code. (B) One hundred twenty percent of the median household income where the purchaser will not be the first occupant. However, the city or county shall ensure that no less than 20 percent of the funds allocated for home mortgages where the purchaser will not be the first occupant shall be for households whose income does not exceed 110 percent of that median household income. However, the legislative body of the city or county may, by resolution, increase this income limitation to 120 percent of the median household income if the legislative body finds that there are insufficient numbers of creditworthy persons whose income does not exceed 110 percent of the median household income. The resolution is final and conclusive as to the findings required by this paragraph. However, the finding shall not be made by the legislative body before six months from the date mortgages were first made under the program and only if participating lenders have entered into an agreement with the city, county, or city and county that lenders will advertise at least monthly the availability of funds and will forfeit one-quarter of their origination fees if they are unable to use 20 percent of the funds to make mortgages to households whose income does not exceed 110 percent of the median income. (C) One hundred fifty percent of the median household income for mortgages made for improving a home or for homes where the purchaser will be the first occupant in any city, the entire area of which, or in any county in which a portion of the county, is designated by the United States Department of Commerce, Economic Development Administration as a special impact area within a Title IV redevelopment area, pursuant to Section 401 of the federal Public Works and Economic Development Act of 1965, as amended, and that is eligible for Urban Development Action Grant funds under the current distress standards established for cities and counties by the Secretary of the United States Department of Housing and Urban Development pursuant to Section 119 of the Housing and Community Development Act of 1974, if the homes purchased or improved are situated within the boundaries of a special impact area as defined by the Economic Development Administration, and that designation is in effect on the date of sale of revenue bonds issued under this part. (2) As used in this subdivision, “median household income” means the highest of (A) statewide median household income, (B) countywide median household income, or (C) median family income for an area, as determined by the United States Department of Housing and Urban Development, with respect to either a standard metropolitan statistical area or an area outside of a standard metropolitan statistical area. (f) Each city or county that finances housing pursuant to this part shall require each mortgagor under the program to certify his or her intention to occupy the home for a minimum of two years after receiving a home mortgage, with appropriate exceptions in hardship cases determined by the city or county. (g) Each city and county may do any and all things necessary to carry out the purposes and exercise the powers expressly granted by this part. (h) This section shall become operative January 1, 2012. (Repealed (in Sec. 1) and added by Stats. 2008, Ch. 283, Sec. 4. Effective January 1, 2009. Section operative January 1, 2012, by its own provisions.)
  151. 52020.5.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 3. Home Financing [52020 - 52023] ( Chapter 3 added by Stats. 1979, Ch. 1069. )

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    The City of Gardena may run a home financing program and must adopt rules, set qualification criteria, and apply income and allocation limits for loans and mortgages it funds.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 3. Home Financing [52020 - 52023] ( Chapter 3 added by Stats. 1979, Ch. 1069. ) ## 52020.5. (a) For purposes of a home financing program authorized by this part, the City of Gardena has the following powers and duties: (1) To acquire, contract, and enter into advance commitments to acquire, home mortgages made or owned by lending institutions at the purchase prices and upon the other terms and conditions as shall be determined by the City of Gardena or other person as it may designate as its agent, to make and execute contracts with lending institutions for the origination and servicing of home mortgages and to pay the reasonable value of services rendered under those contracts. Prior to executing any contract with a lending institution, the City of Gardena shall adopt regulations establishing criteria for qualification of lending institutions eligible to originate and service home mortgages under home financing programs authorized by this part and shall, with respect to each home financing program, permit each qualified lending institution which transacts business in the City of Gardena the opportunity to participate in the program on an equitable basis with other participating lending institutions. (2) To make loans to lending institutions under terms and conditions which, in addition to other provisions as determined by the City of Gardena, require the lending institutions to use all of the net proceeds thereof, directly or indirectly, for the making of home mortgages in an aggregate principal amount equal to the amount of the net proceeds. (3) To establish, by rules or regulations, in resolutions relating to any issuance of bonds or in any documents relating to the issuance, standards and requirements applicable to the purchase of home mortgages or the making of loans to lending institutions as the City of Gardena deems necessary or desirable to effectuate the purposes of this part, which may include without limitation any of the following: (A) The time within which lending institutions are required to make commitments and disbursements for home mortgages. (B) The location and other characteristics of homes to be financed by home mortgages. (C) The terms and conditions of home mortgages to be acquired. (D) The amounts and types of any insurance coverage required on homes, home mortgages and bonds. (E) The representations and warranties of lending institutions confirming compliance with the standards and requirements. (F) Restrictions as to interest rate and other terms of home mortgages or the return realized therefrom by lending institutions. (G) The type and amount of collateral security to be provided to assure repayment of any loans from the City of Gardena and to assure repayment of bonds. (H) Any other matters related to the purchase of home mortgages or the making of loans to lending institutions as deemed relevant by the City of Gardena. (4) To require from each lending institution from which home mortgages are purchased or to which loans are made the submission of evidence satisfactory to the City of Gardena of the ability and intention of the lending institution to make home mortgages, and the submission, within the time specified by the City of Gardena for making disbursements for home mortgages, of evidence satisfactory to the City of Gardena of the making of home mortgages and of compliance with any standards and requirements established by it. (b) The City of Gardena shall designate a person or entity to administer the program. (c) The City of Gardena shall adopt regulations establishing criteria for qualifications of persons and families. In developing this criteria, factors similar to the following shall be taken into consideration: (1) The amount of the income of the person or family that is available for housing needs. (2) The size of the household. (3) The costs and condition of available housing. (4) The eligibility of the persons or families for federal housing assistance of any type. (5) That first-time homebuyers eligible to be assisted under this section be California residents whose annual gross income does not exceed 35 percent of the median area purchase price of a resale house as determined by the City of Gardena. (6) The purchase price of homes eligible to be assisted does not exceed 100 percent of the median area purchase price of resale homes. (d) Criteria for qualification of persons and families pursuant to this section shall include a maximum household income, which maximum shall not exceed the following: (1) One hundred twenty percent of the median household income for mortgages made for improving a home or for homes where the purchaser will be the first occupant. Upon the resale of a home for which financing was originally provided under this paragraph, the maximum income of persons and families shall also be 120 percent of the median household income. (2) The median household income where the purchaser will not be the first occupant. However, the City of Gardena shall ensure that no less than 50 percent of the funds allocated for home mortgages where the purchaser will not be the first occupant shall be for households whose income does not exceed 80 percent of that median household income. However, the legislative body of the City of Gardena may, by resolution, increase this income limitation to 90 percent of median household income if the legislative body finds that there are insufficient numbers of creditworthy persons whose income does not exceed 80 percent of median household income. The resolution is final and conclusive as to the findings required by this paragraph. (3) One hundred fifty percent of the median household income for mortgages made for improving a home or for homes where the purchaser will be the first occupant in the City of Gardena if that city designated by the United States Department of Commerce, Economic Development Administration as a special impact area within a Title IV redevelopment area, pursuant to Section 401 of the federal Public Works and Economic Development Act of 1965, as amended, and which is eligible for Urban Development Action Grant funds under the current distress standards established for cities by the Secretary of the United States Department of Housing and Urban Development pursuant to Section 119 of the Housing and Community Development Act of 1974, if the homes purchased or improved are situated within the boundaries of a special impact area as defined by the Economic Development Administration, and that designation is in effect on the date of sale of revenue bonds issued under this part. As used in this subdivision, “median household income” means the highest of (A) statewide median household income, (B) countywide median household income, or (C) median family income for area as determined by the United States Department of Housing and Urban Development, with respect to either a standard metropolitan statistical area or an area outside of a standard metropolitan statistical area. (e) Subdivision (d) shall not apply with respect to home finance programs funded with amounts made available by the issuance of revenue bonds that (1) for federal tax law purposes are bonds refunding qualified mortgage bonds issued before January 1, 1987, and (2) satisfy the requirements of subdivision (a) of Section 1313 of the federal Tax Reform Act of 1986. With respect to these programs, the maximum household income for qualification of persons and families pursuant to this section shall be the following: (1) One hundred fifty percent of the median household income for mortgages made for improving a home or for homes where the purchaser will be the first occupant. Upon the resale of a home for which financing was originally provided under this paragraph, the maximum income of persons and families shall also be 150 percent of the median household income. For purposes of this paragraph, a mortgage made for improving a home includes a home improvement loan as defined in Section 143 of Title 26 of the United States Code. (2) One hundred twenty percent of the median household income where the purchaser will not be the first occupant. However, the City of Gardena shall ensure that no less than 20 percent of the funds allocated for home mortgages where the purchaser will not be the first occupant shall be for households whose income does not exceed 110 percent of that median household income. However, the legislative body of the city or county may, by resolution, increase this income limitation to 120 percent of the median household income if the legislative body finds that there are insufficient numbers of creditworthy persons whose income does not exceed 110 percent of the median household income. The resolution is final and conclusive as to the findings required by this paragraph. However, the finding shall not be made by the legislative body before six months from the date mortgages were first made under the program and only if participating lenders have entered into an agreement with the City of Gardena that lenders will advertise at least monthly the availability of funds and will forfeit one-quarter of their origination fees if they are unable to use 20 percent of the funds to make mortgages to households whose income does not exceed 110 percent of the median income. (3) One hundred fifty percent of the median household income for mortgages made for improving a home or for homes where the purchaser will be the first occupant in the City of Gardena if that city is designated by the United States Department of Commerce, Economic Development Administration as a special impact area within a Title IV redevelopment area, pursuant to Section 401 of the federal Public Works and Economic Development Act of 1965, as amended, and which is eligible for Urban Development Action Grant funds under the current distress standards established for cities by the Secretary of the United States Department of Housing and Urban Development pursuant to Section 119 of the Housing and Community Development Act of 1974, if the homes purchased or improved are situated within the boundaries of a special impact area as defined by the Economic Development Administration, and that designation is in effect on the date of sale of revenue bonds issued under this part. As used in this subdivision, “median household income” means the highest of (1) statewide median household income, (2) countywide median household income, or (3) median family income for the area as determined by the United States Department of Housing and Urban Development, with respect to either a standard metropolitan statistical area or an area outside of a standard metropolitan statistical area. (f) (1) Except as otherwise provided in paragraphs (2) and (3), the City of Gardena shall allocate no less than 60 percent of the dollar amount of its financing from bond proceeds to fund loans for the purchase of homes where the purchaser will be the first occupant, or for substantial rehabilitation. As used in this chapter, “substantial rehabilitation” means rehabilitation in which the costs of rehabilitation equal or exceed 20 percent of the value of the structure after rehabilitation. (2) Paragraph (1) does not apply to an issue of bonds for which all of the proceeds of the bond issuance are allocated to fund loans for home improvement or substantial rehabilitation. (3) Paragraph (1) shall not apply to that portion of the proceeds of any bonds issued to finance home mortgages for first-time homebuyers. (g) The City of Gardena shall require each mortgagor under the program to certify his or her intention to occupy the home for a minimum of two years after receiving a home mortgage, with appropriate exceptions in hardship cases determined by the City of Gardena. (h) The City of Gardena may do any and all things necessary to carry out the purposes and exercise the powers expressly granted by this part. (Added by Stats. 1990, Ch. 1297, Sec. 5.)
  152. 52021.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 3. Home Financing [52020 - 52023] ( Chapter 3 added by Stats. 1979, Ch. 1069. )

    Verify source ↗

    A home financing program may not be implemented unless it complies with the required land use and housing elements.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 3. Home Financing [52020 - 52023] ( Chapter 3 added by Stats. 1979, Ch. 1069. ) ## 52021. A home financing program authorized by this part shall not be implemented unless the program complies with the land use element and the housing element which is required to be included in the general plan of the city or county by Section 65302 of the Government Code. (Added by Stats. 1979, Ch. 1069.)
  153. 52022.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 3. Home Financing [52020 - 52023] ( Chapter 3 added by Stats. 1979, Ch. 1069. )

    Verify source ↗

    A mortgage-financed debt under this part can be accelerated, with the full balance immediately due, if the home is sold to a buyer who does not meet the required borrower qualifications.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 3. Home Financing [52020 - 52023] ( Chapter 3 added by Stats. 1979, Ch. 1069. ) ## 52022. Notwithstanding Section 711 of the Civil Code, any indebtedness incurred pursuant to a mortgage financed under the terms of this part shall be subject to acceleration and the balance owing declared immediately due and payable upon the sale of the home to a purchaser who does not meet the required qualifications for borrowers of subdivision (f) of Section 52020 or any more stringent qualifications as the city or county may require. (Amended by Stats. 1980, Ch. 466.)
  154. 52023.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 3. Home Financing [52020 - 52023] ( Chapter 3 added by Stats. 1979, Ch. 1069. )

    Verify source ↗

    A lending institution financing home mortgages under this part is not liable for city or county policies or procedures unless those terms are in the contract.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 3. Home Financing [52020 - 52023] ( Chapter 3 added by Stats. 1979, Ch. 1069. ) ## 52023. In providing financing for home mortgages pursuant to this part, a lending institution shall incur no liability in any part based on any policy or procedure which has been adopted by the city or county unless it is contained in the contract between the lending institution and the city or county, its officers, agents or trustees. (Added by Stats. 1979, Ch. 1069.)
  155. 52030.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 4. Revenue Bonds [52030 - 52044] ( Chapter 4 added by Stats. 1979, Ch. 1069. )

    Verify source ↗

    A city or county has specified powers to issue revenue bonds, manage home-mortgage assets, pledge revenues, grant security interests, sell mortgages, refund bonds, and sign related contracts.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 4. Revenue Bonds [52030 - 52044] ( Chapter 4 added by Stats. 1979, Ch. 1069. ) ## 52030. For purposes of this part, a city or county shall have the following powers: (a) To issue its bonds to defray, in whole or in part, (1) the costs of acquiring home mortgages or making loans to lending institutions in order to enable them to make home mortgages, (2) the costs of studies and surveys, insurance premiums, underwriting fees, legal, accounting and marketing services incurred in connection with the issuance and sale of bonds, including bond and mortgage reserve accounts; and trustee, custodian and rating agency fees, and (3) such other costs as are reasonably related to the foregoing. (b) To sell or otherwise dispose of any home mortgages, in whole or in part, or to loan sufficient funds to any person to defray, in whole or in part, the costs of purchasing home mortgages, so that the revenues and receipts to be derived with respect to the home mortgages, together with any insurance proceeds, reserve accounts and earnings thereon, shall be designed to produce revenues and receipts at least sufficient to provide for the prompt payment at maturity of principal, interest and redemption premiums, if any, upon all bonds issued to finance such costs. (c) To pledge any revenues and receipts to be received from or with respect to any home mortgages or loans made to lending institutions pursuant to this part to the punctual payment of bonds authorized under this part, and the interest and redemption premiums, if any, thereon. (d) To mortgage, pledge, assign, or grant security interests in any home mortgages, notes, loans made to lending institutions pursuant to this part, or other property in favor of the holder or holders of bonds issued therefor or the trustee for such holder or holders. (e) To sell and convey any home mortgages or loans made to lending institutions pursuant to this part, for such prices and at such times as the governing body of the city or county may determine. (f) To issue its bonds to refund previously issued bonds in whole or in part at any time. (g) To make and execute contracts and other instruments necessary or convenient to the exercise of any of the powers granted herein. (Added by Stats. 1979, Ch. 1069.)
  156. 52031.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 4. Revenue Bonds [52030 - 52044] ( Chapter 4 added by Stats. 1979, Ch. 1069. )

    Verify source ↗

    The city or county governing body may authorize powers and issue bonds for the purposes in this part by resolution or ordinance.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 4. Revenue Bonds [52030 - 52044] ( Chapter 4 added by Stats. 1979, Ch. 1069. ) ## 52031. The exercise of any or all powers granted by this part shall be authorized and the bonds shall be authorized to be issued under this part for the purposes set forth in this part, by resolution or ordinance of the governing body of the city or county which shall take effect immediately upon adoption. Any such resolution or ordinance shall set forth a finding and declaration (1) of the public purpose therefor and (2) that such resolution or ordinance is being adopted pursuant to the powers granted by this part. The finding and declaration shall be conclusive evidence of the existence and sufficiency of the public purpose and powers. (Added by Stats. 1979, Ch. 1069.)
  157. 52032.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 4. Revenue Bonds [52030 - 52044] ( Chapter 4 added by Stats. 1979, Ch. 1069. )

    Verify source ↗

    Revenue bonds may have flexible terms set by resolution, including interest, maturity, sale, redemption, form, and registration features.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 4. Revenue Bonds [52030 - 52044] ( Chapter 4 added by Stats. 1979, Ch. 1069. ) ## 52032. The bonds shall bear interest at such rate or rates, may be payable at such times, may be in one or more series, may bear such date or dates, may mature at such time or times not exceeding 45 years from their respective dates, may be payable in such medium of payment at such place or places, may carry such registration privileges, may be subject to such terms of redemption at such premiums, may be executed in such manner, may contain such terms, covenants and conditions and may be in such form, either coupon or registered, as the resolution authorizing the bonds may provide. The bonds may be sold at public or private sale in such manner and upon such terms as may be provided in such resolution or by separate resolution. Pending the preparation of definitive bonds, interim receipts or certificates in such form and with such provisions as may be provided in such resolution, may be issued to the purchaser or purchasers of bonds sold pursuant to this part. The bonds and interim receipts or certificates shall be deemed to be securities and negotiable instruments within the meaning and for all purposes of the Uniform Commercial Code of this state, subject to the provisions for registration thereof contained in such resolution. (Added by Stats. 1979, Ch. 1069.)
  158. 52033.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 4. Revenue Bonds [52030 - 52044] ( Chapter 4 added by Stats. 1979, Ch. 1069. )

    Verify source ↗

    A bond-issuing resolution may include covenants about bond revenue use, insurance, trustees, fund investment, interest rates, and receiver remedies.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 4. Revenue Bonds [52030 - 52044] ( Chapter 4 added by Stats. 1979, Ch. 1069. ) ## 52033. Any resolution authorizing the issuance of the bonds may contain covenants as to (1) the use and disposition of the revenues and receipts from or with respect to any home mortgages or loans to lending institutions for which the bonds are to be issued, including the creation and maintenance of reserves, (2) any insurance to be carried on any home, home mortgage or bonds and the use and disposition of insurance moneys, (3) the appointment of one or more banks or trust companies within or outside the state having the necessary trust powers as trustee, custodian, or trustee and custodian for the benefit of the bondholders, paying agent, or bond registrar, (4) the investment of any funds held by such trustee or custodian, (5) the maximum interest rate payable on any home mortgage, and (6) the terms and conditions upon which the holders of the bonds or any portion thereof, or any trustees therefor, are entitled to the appointment of a receiver by a court of competent jurisdiction, and which may provide that the receiver may take possession of the home mortgages, or any part thereto, and maintain, sell or otherwise dispose of such mortgages, prescribe other payments and collect, receive and apply all income and revenues thereafter arising therefrom. Any resolution authorizing the issuance of bonds may provide that the principal or redemption price of, and interest on, the bonds shall be secured by a mortgage, pledge, assignment, security interest, insurance agreement or indenture of trust covering such home mortgages or loans to lending institutions for which the bonds are issued and may include any improvements or extensions thereafter made. Such mortgage, pledge, assignment, security interest, insurance agreement or indenture of trust may contain such covenants and agreements to properly safeguard the bonds as may be provided for in the resolution authorizing such bonds and shall be executed in the manner as may be provided for in the resolution. The provisions of this part and any such resolution and any such mortgage, pledge, assignment, security interest, insurance agreement, or indenture of trust shall constitute a contract with the holder or holders of the bonds and continue in effect until the principal of, the interest on, and the redemption premiums, if any, on the bonds so issued have been fully paid or provision made therefor, and the duties of the issuing city or county and its agencies and officers under this part and any such resolution and any such mortgage, pledge, assignment, security interest, insurance agreement, or indenture of trust shall be enforceable as provided therein by any bondholder by mandamus, foreclosure of any such mortgage, pledge, assignment, security interest, insurance agreement, or indenture of trust or other appropriate suit, action or proceeding in any court of competent jurisdiction; provided, the resolution or any mortgage, pledge, assignment, security interest, insurance agreement, or indenture of trust under which the bonds are issued may provide that all such remedies and rights to enforcement may be vested in a trustee (with full power of appointment) for the benefit of all the bondholders, and that the trustee shall be subject to the control of such number of holders or owners of any outstanding bonds as specified in the resolution. (Added by Stats. 1979, Ch. 1069.)
  159. 52034.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 4. Revenue Bonds [52030 - 52044] ( Chapter 4 added by Stats. 1979, Ch. 1069. )

    Verify source ↗

    The section says the bonds must carry designated city or county officers’ signatures, and those signatures remain valid even if the officers leave office before delivery and payment.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 4. Revenue Bonds [52030 - 52044] ( Chapter 4 added by Stats. 1979, Ch. 1069. ) ## 52034. The bonds shall bear the manual or facsimile signatures of such officers of the issuing city or county as may be designated in the resolution authorizing the bonds and such signatures shall be the valid and binding signatures of the officers of the city or county, notwithstanding that before the delivery thereof and payment therefor any or all of the persons whose signatures appear thereon have ceased to be officers of the city or county. The validity of the bonds shall not be dependent on, nor affected by, the validity or regularity of any proceedings relating to the home mortgages for which the bonds are issued. The resolution authorizing the bonds may provide that the bonds shall contain a recital that they are issued pursuant to this part, and the recital shall be conclusive evidence of their validity and of the regularity of their issuance. (Added by Stats. 1979, Ch. 1069.)
  160. 52035.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 4. Revenue Bonds [52030 - 52044] ( Chapter 4 added by Stats. 1979, Ch. 1069. )

    Verify source ↗

    The governing body of the issuing city or county may authorize additional bonds in the bond resolution, and those additional bonds may be secured by a lien on the same revenues and receipts.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 4. Revenue Bonds [52030 - 52044] ( Chapter 4 added by Stats. 1979, Ch. 1069. ) ## 52035. Bonds issued under this part may be secured by a pledge of, or lien upon the revenues and receipts derived from or with respect to the home mortgages or from or with respect to any notes or other obligations of lending institutions with respect to which the bonds have been issued, and the governing body of the issuing city or county may provide in the resolution authorizing such bonds for the issuance of additional bonds to be equally and ratably secured by a lien upon such revenues and receipts. (Added by Stats. 1979, Ch. 1069.)
  161. 52036.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 4. Revenue Bonds [52030 - 52044] ( Chapter 4 added by Stats. 1979, Ch. 1069. )

    Verify source ↗

    A pledge made to secure bonds is valid and binding when made, and pledged revenues, receipts, property, or property interests become subject to the lien immediately when received by the issuing city or county, trustee, or custodian.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 4. Revenue Bonds [52030 - 52044] ( Chapter 4 added by Stats. 1979, Ch. 1069. ) ## 52036. Any pledge made to secure bonds shall be valid and binding from the time when the pledge is made. The revenues and receipts or property or interests in property pledged and thereafter received by the issuing city or county, trustee or custodian shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against such city or county, trustee or custodian, irrespective of whether the parties have notice thereof. Neither the resolution nor any other instrument by which a pledge is created need be recorded. (Added by Stats. 1979, Ch. 1069.)
  162. 52037.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 4. Revenue Bonds [52030 - 52044] ( Chapter 4 added by Stats. 1979, Ch. 1069. )

    Verify source ↗

    Bonds issued under this part are limited obligations payable only from specified housing-related revenues, not from city or county taxing power.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 4. Revenue Bonds [52030 - 52044] ( Chapter 4 added by Stats. 1979, Ch. 1069. ) ## 52037. All bonds issued pursuant to this part shall be limited obligations of the city or county issuing the same, payable solely out of the revenues and receipts derived from or with respect to the home mortgages or from or with respect to any notes or other obligations of lending institutions with respect to which the bonds are issued. No holder of any bonds issued under this part has the right to compel any exercise of the taxing power of a city or county to pay the bonds, the interest or redemption premium, if any, thereon, and the bonds shall not constitute an indebtedness of the issuing city or county or a loan of credit thereof within the meaning of any constitutional or statutory provision, nor shall the bonds be construed to create any moral obligation on the part of the issuing city or county or any agency or subdivision thereof with respect to the payment of such bonds. It shall be plainly stated on the face of each bond that it has been issued under the provisions of this part and that it does not constitute an indebtedness of the city or county issuing the bond or a loan of credit thereof within the meaning of any constitutional or statutory provisions. (Added by Stats. 1979, Ch. 1069.)
  163. 52038.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 4. Revenue Bonds [52030 - 52044] ( Chapter 4 added by Stats. 1979, Ch. 1069. )

    Verify source ↗

    Certain city or county officials, employees, and bond executors are not personally liable for bonds issued under this part.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 4. Revenue Bonds [52030 - 52044] ( Chapter 4 added by Stats. 1979, Ch. 1069. ) ## 52038. Neither the members of the governing body of a city or county, nor any official or employee of a city or county, nor any person executing bonds issued under this part shall be liable personally on the bonds or be subject to any personal liability or accountability by reason of the issuance thereof. (Added by Stats. 1979, Ch. 1069.)
  164. 52039.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 4. Revenue Bonds [52030 - 52044] ( Chapter 4 added by Stats. 1979, Ch. 1069. )

    Verify source ↗

    Property and bonds covered by this section are exempt from most state and local taxes, except inheritance and gift taxes.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 4. Revenue Bonds [52030 - 52044] ( Chapter 4 added by Stats. 1979, Ch. 1069. ) ## 52039. Any property or interests in property held by or on behalf of a city or county pursuant to the provisions of this part and any bonds issued under the provisions of this part, their transfer and the income therefrom, shall at all times be free from taxation of every kind by the state and city or county, or other political subdivision of the state, except inheritance and gift taxes. (Added by Stats. 1979, Ch. 1069.)
  165. 52040.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 4. Revenue Bonds [52030 - 52044] ( Chapter 4 added by Stats. 1979, Ch. 1069. )

    Verify source ↗

    This section says bonds issued under this part are legal investments for specified funds, institutions, fiduciaries, and public funds.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 4. Revenue Bonds [52030 - 52044] ( Chapter 4 added by Stats. 1979, Ch. 1069. ) ## 52040. Notwithstanding any other provision of law, bonds issued pursuant to this part shall be legal investments for all trust funds, insurance companies, savings and loan associations, investment companies and banks, both savings and commercial, and shall be legal investments for executors, administrators, trustees and all other fiduciaries. Such bonds shall be legal investments for state school funds and for any funds which may be invested in county, municipal or school district bonds, and such bonds shall be deemed to be securities which may properly and legally be deposited with, and received by, any state or municipal officer or by any agency or political subdivision of the state for any purpose for which the deposit of bonds or obligations of the state is now, or may hereafter, be authorized by law, including deposits to secure public funds. (Added by Stats. 1979, Ch. 1069.)
  166. 52041.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 4. Revenue Bonds [52030 - 52044] ( Chapter 4 added by Stats. 1979, Ch. 1069. )

    Verify source ↗

    A civil action may be brought to test the validity of bond issuances or proposed issuances and related county or city bond-authorization proceedings.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 4. Revenue Bonds [52030 - 52044] ( Chapter 4 added by Stats. 1979, Ch. 1069. ) ## 52041. An action may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure and any other applicable laws of the state to determine the validity of any issuance or proposed issuance of bonds under this part and the legality and validity of all proceedings previously taken or proposed in a resolution of a county or city to be taken for the authorization, issuance, sale and delivery of the bonds and for the payment of the principal thereof and interest thereon. (Added by Stats. 1979, Ch. 1069.)
  167. 52042.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 4. Revenue Bonds [52030 - 52044] ( Chapter 4 added by Stats. 1979, Ch. 1069. )

    Verify source ↗

    A city or county that has issued bonds under this part, or a trustee or custodian for it, may invest funds it holds as allowed by the bond resolution.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 4. Revenue Bonds [52030 - 52044] ( Chapter 4 added by Stats. 1979, Ch. 1069. ) ## 52042. A city or county which has issued bonds pursuant to this part or any trustee or custodian on behalf of the city or county, may invest any funds held by it as provided in the resolution authorizing the issuance of the bonds. (Added by Stats. 1979, Ch. 1069.)
  168. 52042.5.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 4. Revenue Bonds [52030 - 52044] ( Chapter 4 added by Stats. 1979, Ch. 1069. )

    Verify source ↗

    Investments allowed under Section 52042 may include certain mortgage obligations if the stated insurance and repurchase conditions are met.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 4. Revenue Bonds [52030 - 52044] ( Chapter 4 added by Stats. 1979, Ch. 1069. ) ## 52042.5. Investments under Section 52042 may include mortgage obligations on single-family dwellings purchased from a state or federally chartered savings and loan association pursuant to a repurchase agreement under which the bank or savings and loan association will repurchase the mortgage obligation on or before a specified date and for a specified amount, provided that the mortgage or the repurchase agreement shall be insured by a mortgage insurance company licensed to insure mortgages in the State of California and qualified to provide insurance on mortgages purchased by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association. The authority provided in this section and Section 52042 is additional and alternative to any other authorization for investment contained in this part, including Section 52044, or in other provisions of law. (Added by Stats. 1980, Ch. 331.)
  169. 52043.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 4. Revenue Bonds [52030 - 52044] ( Chapter 4 added by Stats. 1979, Ch. 1069. )

    Verify source ↗

    Money received under this part is treated as trust funds and must be used only for this part’s purposes. A bank or trust company holding the money must act as trustee and apply it accordingly, subject to the bond resolution.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 4. Revenue Bonds [52030 - 52044] ( Chapter 4 added by Stats. 1979, Ch. 1069. ) ## 52043. All moneys received pursuant to the provisions of this part, whether revenues or proceeds from the sale of revenue bonds or proceeds of mortgage insurance or guarantee claims, shall be deemed to be trust funds to be held and applied solely for the purposes of this part. Any bank or trust company in which such moneys are deposited shall act as trustee of such moneys and shall hold and apply the same for the purposes specified in this part, subject to the terms of the resolution authorizing the revenue bonds. (Added by Stats. 1979, Ch. 1069.)
  170. 52044.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 4. Revenue Bonds [52030 - 52044] ( Chapter 4 added by Stats. 1979, Ch. 1069. )

    Verify source ↗

    A city or county may issue revenue bonds to refund outstanding revenue bonds, and may also use the proceeds in specified ways, including escrow and investment.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 4. Revenue Bonds [52030 - 52044] ( Chapter 4 added by Stats. 1979, Ch. 1069. ) ## 52044. A city or county may provide for the issuance of the revenue bonds of the city or county for the purpose of refunding any revenue bonds of the city or county then outstanding, including the payment of any redemption premiums thereof and any interest accrued or to accrue to the earliest or subsequent date of redemption, purchase, or maturity of such bonds, and, if deemed advisable by the city or county, for the additional purpose of paying all or any part of the cost of additional residential construction. The proceeds of revenue bonds issued pursuant to this section may, in the discretion of the city or county, be applied to the purchase or retirement at maturity or redemption of outstanding revenue bonds, either at their earliest or any subsequent redemption date or upon the purchase or retirement at the maturity thereof and, pending such application, that portion of the proceeds allocated for such purpose may be placed in escrow, to be applied to such purchase or retirement at maturity or redemption on such date, as may be determined by the city or county. Pending use for purchase, retirement at maturity, or redemption of outstanding revenue bonds, any proceeds held in such an escrow may be invested and reinvested as provided in the resolution authorizing the issuance of the refunding bonds. Any interest or other increment earned or realized on any such investment may also be applied to the payment of the outstanding revenue bonds to be refunded. After the terms of the escrow have been fully satisfied and carried out, any balance of such proceeds and any interest or increment earned or realized from the investment thereof may be returned to the city or county to be used by it for any lawful purpose under this part. That portion of the proceeds of any revenue bonds issued pursuant to this section which is designated for the purpose of paying all or any part of the cost of additional residential construction may be invested and reinvested in obligations of, or guaranteed by, the United States of America or in certificates of deposit or time deposits secured by obligation of, or guaranteed by, the United States of America, maturing not later than the time or times when such proceeds will be needed for the purpose of paying all or any part of such cost. All revenue bonds issued pursuant to this section shall be subject to the provisions of this part in the same manner and to the same extent as other bonds issued pursuant to this part. (Added by Stats. 1979, Ch. 1069.)
  171. 52051.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 5. Miscellaneous Provisions [52051 - 52054] ( Chapter 5 added by Stats. 1979, Ch. 1069. )

    Verify source ↗

    Chapter 16 of the Government Code does not apply to certain mortgagors whose homes were acquired through foreclosure, trust deed, sale, or similar proceedings after default on a home mortgage made under this part.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 5. Miscellaneous Provisions [52051 - 52054] ( Chapter 5 added by Stats. 1979, Ch. 1069. ) ## 52051. The provisions of Chapter 16 (commencing with Section 7260) of Division 7 of Title 1 of the Government Code shall not apply to a mortgagor of any home acquired by foreclosure, trust deed, sale or other proceeding resulting from default on a home mortgage made by a county or city or by a lending institution pursuant to this part. (Added by Stats. 1979, Ch. 1069.)
  172. 52052.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 5. Miscellaneous Provisions [52051 - 52054] ( Chapter 5 added by Stats. 1979, Ch. 1069. )

    Verify source ↗

    This part is declared necessary for the health, welfare, and safety of the state, its counties and cities, and their inhabitants, and it must be interpreted liberally to carry out its purposes.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 5. Miscellaneous Provisions [52051 - 52054] ( Chapter 5 added by Stats. 1979, Ch. 1069. ) ## 52052. This part is necessary for the health, welfare and safety of the state, its counties and cities and its inhabitants. Therefore, it shall be liberally construed to effect its purposes. (Added by Stats. 1979, Ch. 1069.)
  173. 52053.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 5. Miscellaneous Provisions [52051 - 52054] ( Chapter 5 added by Stats. 1979, Ch. 1069. )

    Verify source ↗

    This section says the part’s bond and mortgage-financing powers are supplemental, and for certain city bond issuances it is the exclusive authority, subject to stated exceptions.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 5. Miscellaneous Provisions [52051 - 52054] ( Chapter 5 added by Stats. 1979, Ch. 1069. ) ## 52053. (a) Except as provided in subdivision (b), the powers conferred by this part are in addition and supplemental to, and the limitations imposed by this part shall not affect the powers conferred by, any other law. (b) The Legislature finds and declares that the market for municipal home mortgage revenue bonds is limited and that, as a matter of overriding state policy, issuances of such bonds should be limited to financing housing for persons whose housing needs are least satisfied by conventional mortgage financing and other governmental home ownership assistance programs. This part contains appropriate limitations with respect to mortgagor income and also contains provisions which will assist in assuring that no bond issuance under this part will result in any impairment of the public credit in this state. Therefore, this part shall be the exclusive authority for issuance of revenue bonds by any city, including any charter city, county, or city and county for the purpose of providing long-term mortgage financing for the construction or acquisition of housing, excluding multifamily rental housing and multifamily cooperative housing; provided, that nothing in this subdivision shall supersede any other provision of state law authorizing the provision of long-term mortgage financing by any state agency or local public entity; and provided further, that nothing in this subdivision shall affect, or be in any way applicable to, revenue bonds issued (and loans made with the proceeds thereof) by the Cities of San Bernardino, Burbank, or Pasadena on or before July 1, 1980, the interest on which would be excludable from the gross income of the recipients by reason of the applicable laws of the United States and the regulations promulgated thereunder in effect at the time such revenue bonds are issued, or by any other charter city on or before February 1, 1980, the interest on which would be excludable from the gross income of the recipients by reason of Section 4(b) of the proposed Mortgage Subsidy Bond Tax Act of 1979, as reported by the Committee on Ways and Means of the United States House of Representatives on August 31, 1979. Furthermore, nothing in this subdivision shall affect the authority conferred upon a charter city by its charter to issue revenue bonds to undertake a program of long-term mortgage financing of multifamily rental housing. (c) Home mortgages may be acquired, purchased, and financed, and bonds may be issued under this part for purposes of this part, notwithstanding that any other law or resolution may provide for the acquisition, purchase, and financing of like home mortgages, or the issuance of bonds for like purposes, and without regard to the requirements, restrictions, limitations, or other provisions contained in any other law or resolution. (Amended by Stats. 1980, Ch. 466.)
  174. 52053.5.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 5. Miscellaneous Provisions [52051 - 52054] ( Chapter 5 added by Stats. 1979, Ch. 1069. )

    Verify source ↗

    Certain charter cities and city and counties may issue specified revenue bonds for housing programs, subject to income, subsidy, and housing-unit conditions.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 5. Miscellaneous Provisions [52051 - 52054] ( Chapter 5 added by Stats. 1979, Ch. 1069. ) ## 52053.5. Notwithstanding subdivision (b) of Section 52053 or any of the limitations of this part: (a) A charter city having seven community development districts established for purposes of Section 105(a)(8) of Public Law 93-383, as amended, and which, prior to February 1, 1980, issued revenue bonds to finance mortgage loans on homes, may issue not more than thirty-three million dollars ($33,000,000) of additional revenue bonds pursuant to local ordinance to make or purchase mortgage loans on homes as defined in Section 52012, subject to the following conditions: (1) For mortgage loans on homes located within such a community development district, the income of a purchaser shall not exceed 150 percent of the median income within the city. (2) For a home located outside of a community development district, the income of a purchaser shall not exceed 120 percent of the city’s area median income. (3) The maximum loan amount for homes undergoing rehabilitation in connection with financing pursuant to this subdivision shall not exceed the median purchase price of a home in the city. (b) A city and county may issue not more than sixty million dollars ($60,000,000) of revenue bonds pursuant to local ordinance for the purpose of financing the purchase of residential housing units under the following conditions: (1) The proceeds of the bonds will be used in combination with subsidy moneys made available through grant programs such as the Urban Development Action Grant, the Community Development Block Grant or other federal, state, local, or private moneys to finance the purchase of residential housing under an ownership or financing arrangement which provides for the sharing of equity appreciation between one or more occupants of each property and the city and county (or an entity acting on its behalf). (2) The revenue bonds and subsidy moneys shall provide for the following: (A) At least 50 percent of the participants of the program shall be lower income households, as defined in Section 50079.5, unless after the date six months after the date of issuance of the bonds the city and county makes a written finding that this requirement cannot be achieved in spite of the diligent efforts of the city and county and because of the limited availability of subsidy moneys, in which case at least 25 percent of the participants of the program shall be lower-income households. (B) In no case shall participants of the program be persons and families whose incomes are more than 150 percent of the area medium income. (C) Not less than 30 percent of the residential housing units financed pursuant to this subdivision shall be units where the participant in the program is the first occupant or units which are being substantially rehabilitated. As used in this subparagraph, “substantial rehabilitation” means rehabilitation in which the costs of rehabilitation equal or exceed 20 percent of the value of the structure after rehabilitation. However, the requirements of this paragraph may be modified by the city and county, as necessary to meet the conditions of approval of the United States Department of Housing and Urban Development. (c) Notwithstanding any other provision of law, bonds issued pursuant to this section shall be legal investments for all trust funds, insurance companies, savings and loan associations, investment companies and banks, both savings and commercial, and shall be legal investments for executors, administrators, trustees and all other fiduciaries. Such bonds shall be legal investments for state school funds and for any funds which may be invested in county, municipal, or school district bonds, and such bonds shall be deemed to be securities which may properly and legally be deposited with, and received by, any state or municipal officer or by any agency or political subdivision of the state for any purpose for which the deposit of bonds or obligations of the state is now, or may hereafter be authorized by law, including deposits to secure public funds. (d) It is not the intent of the Legislature in enacting this section to change the provisions of this part, but only to continue programs relating to the goals of this part and to prevent loss of commitments for Urban Development Action Grants. (Amended by Stats. 1983, Ch. 478, Sec. 8. Effective July 28, 1983.)
  175. 52054.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 5. Miscellaneous Provisions [52051 - 52054] ( Chapter 5 added by Stats. 1979, Ch. 1069. )

    Verify source ↗

    If part of this provision is invalid, the rest still applies when it can work without the invalid part.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 5. Miscellaneous Provisions [52051 - 52054] ( Chapter 5 added by Stats. 1979, Ch. 1069. ) ## 52054. If any provision of this part or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of the part which can be given effect without the invalid provision or application, and to this end the provisions of this part are severable. (Added by Stats. 1979, Ch. 1069.)
  176. 52060.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 6. California Housing Finance Agency Assistance in Issuing City and County Revenue Bonds for Home Mortgages [52060 - 52066] ( Chapter 6 added by Stats. 1980, Ch. 1141. )

    Verify source ↗

    This section says cities and counties may use an alternative method to issue revenue bonds to provide home mortgages.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 6. California Housing Finance Agency Assistance in Issuing City and County Revenue Bonds for Home Mortgages [52060 - 52066] ( Chapter 6 added by Stats. 1980, Ch. 1141. ) ## 52060. This chapter constitutes an alternative method for cities and counties to issue revenue bonds for providing home mortgages pursuant to the provisions of Chapters 1 (commencing with Section 52000) to 5 (commencing with Section 52051), inclusive. (Added by Stats. 1980, Ch. 1141.)
  177. 52061.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 6. California Housing Finance Agency Assistance in Issuing City and County Revenue Bonds for Home Mortgages [52060 - 52066] ( Chapter 6 added by Stats. 1980, Ch. 1141. )

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    The agency and any city or county may enter into an agreement for the agency to sell bonds to fund home mortgages.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 6. California Housing Finance Agency Assistance in Issuing City and County Revenue Bonds for Home Mortgages [52060 - 52066] ( Chapter 6 added by Stats. 1980, Ch. 1141. ) ## 52061. The agency, and any city or county, or a city and a county, may enter into an agreement which provides that the agency sell bonds on behalf of any such city or county, or for such city and such county, for the purpose of providing funds for home mortgages. (Added by Stats. 1980, Ch. 1141.)
  178. 52062.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 6. California Housing Finance Agency Assistance in Issuing City and County Revenue Bonds for Home Mortgages [52060 - 52066] ( Chapter 6 added by Stats. 1980, Ch. 1141. )

    Verify source ↗

    An agreement under Section 52061 must include several bond-related safeguards and approvals.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 6. California Housing Finance Agency Assistance in Issuing City and County Revenue Bonds for Home Mortgages [52060 - 52066] ( Chapter 6 added by Stats. 1980, Ch. 1141. ) ## 52062. Any agreement made pursuant to Section 52061 shall contain provisions doing all of the following: (a) Limiting the maximum amount of bonds to be issued by a city or county. (b) Requiring that the city, or county, or each city and county that is a party to the agreement, not issue additional bonds for home mortgage loans within a period of three years from the date of the bonds issued pursuant to the agreement, or until all of the proceeds of those bonds have been used to make home mortgage loans, without the express written consent of the agency. (c) Requiring that all bonds and any prospectus in connection with those bonds contain a legend condition to the following effect: “Neither the faith and credit of the State of California or the agency nor the taxing power of the state is pledged to the payment of principal or interest on this bond.” (d) Requiring agency approval of the bond counsel of the city or county, or the bond counsel of each city and county that is a party to the agreement. (e) Designating, consistent with the agency’s program for financing residential structures of four units or less authorized by Article 2 (commencing with Section 51125) of Chapter 5 of Part 3 and the regulations adopted pursuant thereto, maximum sales prices of homes, maximum loan amounts for home mortgages involving rehabilitation and refinancing, borrower eligibility criteria, geographic areas where loans can be made, insurance requirements, the minimum percentage of bond proceeds to be utilized for home mortgages involving new construction and rehabilitation and the amount to be allocated to a bond reserve fund. (Amended by Stats. 1996, Ch. 833, Sec. 14. Effective January 1, 1997.)
  179. 52063.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 6. California Housing Finance Agency Assistance in Issuing City and County Revenue Bonds for Home Mortgages [52060 - 52066] ( Chapter 6 added by Stats. 1980, Ch. 1141. )

    Verify source ↗

    An agreement under Section 52061 may include provisions for home mortgage loan origination and servicing, bond-related fees and expenses, and other matters covered by Section 51355.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 6. California Housing Finance Agency Assistance in Issuing City and County Revenue Bonds for Home Mortgages [52060 - 52066] ( Chapter 6 added by Stats. 1980, Ch. 1141. ) ## 52063. Any agreement pursuant to Section 52061 may provide any or all of the following: (a) That the agency will provide, either directly or through agency approved lending institutions, for the origination and servicing of home mortgage loans. (b) For the payment of fees and expenses in connection with the issuing of bonds. (c) For any matter described in Section 51355 relating to agency bonds. (Added by Stats. 1980, Ch. 1141.)
  180. 52064.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 6. California Housing Finance Agency Assistance in Issuing City and County Revenue Bonds for Home Mortgages [52060 - 52066] ( Chapter 6 added by Stats. 1980, Ch. 1141. )

    Verify source ↗

    Chapter 4 applies to any issuer, subject to this chapter and any agreement between the agency and a city or county.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 6. California Housing Finance Agency Assistance in Issuing City and County Revenue Bonds for Home Mortgages [52060 - 52066] ( Chapter 6 added by Stats. 1980, Ch. 1141. ) ## 52064. Subject only to the other provisions of this chapter and to any agreement between the agency and city or county, the provisions of Chapter 4 (commencing with Section 52030) shall be applicable to any issuer and to any bonds issued pursuant to the authority of this chapter. (Added by Stats. 1980, Ch. 1141.)
  181. 52065.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 6. California Housing Finance Agency Assistance in Issuing City and County Revenue Bonds for Home Mortgages [52060 - 52066] ( Chapter 6 added by Stats. 1980, Ch. 1141. )

    Verify source ↗

    Bonds issued under this chapter are not treated as agency issues.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 6. California Housing Finance Agency Assistance in Issuing City and County Revenue Bonds for Home Mortgages [52060 - 52066] ( Chapter 6 added by Stats. 1980, Ch. 1141. ) ## 52065. Bonds issued pursuant to this chapter shall not be deemed issues of the agency for any purpose, including being counted within any calculation of the agency’s bonding authority limitations now or hereafter established by law. (Added by Stats. 1980, Ch. 1141.)
  182. 52066.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 6. California Housing Finance Agency Assistance in Issuing City and County Revenue Bonds for Home Mortgages [52060 - 52066] ( Chapter 6 added by Stats. 1980, Ch. 1141. )

    Verify source ↗

    Bonds from more than one city or county may be pooled for issuance, and related proceeds or other security may also be pooled to secure the bonds.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 6. California Housing Finance Agency Assistance in Issuing City and County Revenue Bonds for Home Mortgages [52060 - 52066] ( Chapter 6 added by Stats. 1980, Ch. 1141. ) ## 52066. Bonds of more than one city or county may be pooled for purposes of issuance and bond proceeds, reserved or other security for the bonds, including, but not limited to, loan or loan participation, made or derived from bond proceeds, may likewise be pooled to secure the issuance of any such bonds. (Added by Stats. 1980, Ch. 1141.)
  183. 52075.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 7. Multifamily Rental Housing [52075 - 52098] ( Chapter 7 added by Stats. 2002, Ch. 12, Sec. 1. ) ## ARTICLE 1. Financing [52075 - 52087] ( Article 1 added by Stats. 2002, Ch. 12, Sec. 1. )

    Verify source ↗

    This section lets a city or county issue revenue bonds, subject to this chapter’s limits, to finance multifamily rental housing and related necessary capital improvements.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 7. Multifamily Rental Housing [52075 - 52098] ( Chapter 7 added by Stats. 2002, Ch. 12, Sec. 1. ) ## ARTICLE 1. Financing [52075 - 52087] ( Article 1 added by Stats. 2002, Ch. 12, Sec. 1. ) ## 52075. (a) Subject to the limitations of this chapter, any city or county may, in addition to any other power conferred by this part, issue revenue bonds as provided in Chapter 4 (commencing with Section 52030) for the purpose of financing the acquisition, construction, rehabilitation, refinancing, or development of multifamily rental housing and for the provision of capital improvements in connection with and determined necessary to that multifamily rental housing. (b) For this purpose, the term “home mortgage,” as used in Chapter 4 (commencing with Section 52030), and as defined by Section 52013, shall be further defined to include construction loans and mortgage loans to housing sponsors to finance the acquisition, construction, rehabilitation, refinancing, or development of multifamily rental housing and for the provision of capital improvements in connection with and determined necessary to the multifamily rental housing. (c) To the extent possible, Chapter 4 (commencing with Section 52030) shall be construed in a manner that enables a city or county to comply with the purpose and requirements of this chapter. (Added by Stats. 2002, Ch. 12, Sec. 1. Effective March 11, 2002.)
  184. 52075.1.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 7. Multifamily Rental Housing [52075 - 52098] ( Chapter 7 added by Stats. 2002, Ch. 12, Sec. 1. ) ## ARTICLE 1. Financing [52075 - 52087] ( Article 1 added by Stats. 2002, Ch. 12, Sec. 1. )

    Verify source ↗

    In this chapter, “city or county” means any city and county.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 7. Multifamily Rental Housing [52075 - 52098] ( Chapter 7 added by Stats. 2002, Ch. 12, Sec. 1. ) ## ARTICLE 1. Financing [52075 - 52087] ( Article 1 added by Stats. 2002, Ch. 12, Sec. 1. ) ## 52075.1. As used in this chapter, “city or county” includes any city and county. (Amended by Stats. 2003, Ch. 62, Sec. 189. Effective January 1, 2004.)
  185. 52076.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 7. Multifamily Rental Housing [52075 - 52098] ( Chapter 7 added by Stats. 2002, Ch. 12, Sec. 1. ) ## ARTICLE 1. Financing [52075 - 52087] ( Article 1 added by Stats. 2002, Ch. 12, Sec. 1. )

    Verify source ↗

    A city or county may make or commit to make construction and mortgage loans for multifamily rental housing, and must use regulatory contracts and related agreements with borrowing housing sponsors to ensure chapter requirements are met.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 7. Multifamily Rental Housing [52075 - 52098] ( Chapter 7 added by Stats. 2002, Ch. 12, Sec. 1. ) ## ARTICLE 1. Financing [52075 - 52087] ( Article 1 added by Stats. 2002, Ch. 12, Sec. 1. ) ## 52076. Subject to the limitations prescribed in this chapter, a city or county may make, or undertake commitments to make, construction loans and mortgage loans to housing sponsors to finance the acquisition, construction, rehabilitation, refinancing, or development of multifamily rental housing. For this purpose, the city or county shall enter into regulatory contracts and other agreements with housing sponsors receiving loans under this chapter to assure all requirements of this chapter are satisfied. (Added by Stats. 2002, Ch. 12, Sec. 1. Effective March 11, 2002.)
  186. 52077.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 7. Multifamily Rental Housing [52075 - 52098] ( Chapter 7 added by Stats. 2002, Ch. 12, Sec. 1. ) ## ARTICLE 1. Financing [52075 - 52087] ( Article 1 added by Stats. 2002, Ch. 12, Sec. 1. )

    Verify source ↗

    A city or county may finance multifamily rental housing by purchasing or arranging certain loans, and may lend to lending institutions if the loan terms require the proceeds to be used for those housing loans.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 7. Multifamily Rental Housing [52075 - 52098] ( Chapter 7 added by Stats. 2002, Ch. 12, Sec. 1. ) ## ARTICLE 1. Financing [52075 - 52087] ( Article 1 added by Stats. 2002, Ch. 12, Sec. 1. ) ## 52077. Subject to the limitations prescribed in this chapter, a city or county may purchase, or undertake, directly or indirectly through lending institutions, commitments to purchase, construction loans and mortgage loans originated in accordance with a financing agreement with the city or county to finance the acquisition, construction, rehabilitation, refinancing, or development of multifamily rental housing and may make loans to lending institutions under terms and conditions which, in addition to other provisions determined by the city or county, shall require the lending institutions to use the net proceeds of the loans for the making, directly or indirectly, of construction loans or mortgage loans to finance the acquisition, construction, rehabilitation, refinancing, or development of multifamily rental housing. (Added by Stats. 2002, Ch. 12, Sec. 1. Effective March 11, 2002.)
  187. 52078.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 7. Multifamily Rental Housing [52075 - 52098] ( Chapter 7 added by Stats. 2002, Ch. 12, Sec. 1. ) ## ARTICLE 1. Financing [52075 - 52087] ( Article 1 added by Stats. 2002, Ch. 12, Sec. 1. )

    Verify source ↗

    A city or county may issue bonds to pay for specified bond-issuance and related costs.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 7. Multifamily Rental Housing [52075 - 52098] ( Chapter 7 added by Stats. 2002, Ch. 12, Sec. 1. ) ## ARTICLE 1. Financing [52075 - 52087] ( Article 1 added by Stats. 2002, Ch. 12, Sec. 1. ) ## 52078. For the purposes of this chapter, a city or county shall have the power to issue its bonds to defray, in whole or in part, the costs of studies and surveys, insurance premiums, underwriting fees, legal, accounting, and marketing services incurred in connection with the issuance and sale of bonds, including bond and mortgage reserve accounts; trustee, custodian, and rating agency fees, and any other costs which are reasonably related to the foregoing. (Added by Stats. 2002, Ch. 12, Sec. 1. Effective March 11, 2002.)
  188. 52079.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 7. Multifamily Rental Housing [52075 - 52098] ( Chapter 7 added by Stats. 2002, Ch. 12, Sec. 1. ) ## ARTICLE 1. Financing [52075 - 52087] ( Article 1 added by Stats. 2002, Ch. 12, Sec. 1. )

    Verify source ↗

    A city or county may finance commercial property for lease alongside multifamily rental housing financing, but only subject to stated limits and rent-reduction conditions.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 7. Multifamily Rental Housing [52075 - 52098] ( Chapter 7 added by Stats. 2002, Ch. 12, Sec. 1. ) ## ARTICLE 1. Financing [52075 - 52087] ( Article 1 added by Stats. 2002, Ch. 12, Sec. 1. ) ## 52079. A city or county may, in conjunction with the financing of multifamily rental housing pursuant to this chapter, finance the acquisition, construction, rehabilitation, refinancing, or development of commercial property for lease, subject to all of the following conditions: (a) No more than 10 percent of the proceeds of any revenue bonds issued pursuant to this chapter may be used to develop the commercial property for lease. (b) The commercial property developed will be located on the same parcel or on a parcel adjacent to a multifamily rental housing development. (c) As a condition of the financing, any lease payments collected in excess of payments necessary for debt service, operating expenses and any required reserves related to that property, shall be used to reduce rents on units reserved for occupancy by lower income households and very low income households in a multifamily rental housing development. (Added by Stats. 2002, Ch. 12, Sec. 1. Effective March 11, 2002.)
  189. 52080.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 7. Multifamily Rental Housing [52075 - 52098] ( Chapter 7 added by Stats. 2002, Ch. 12, Sec. 1. ) ## ARTICLE 1. Financing [52075 - 52087] ( Article 1 added by Stats. 2002, Ch. 12, Sec. 1. )

    Verify source ↗

    This section requires certain bond-financed multifamily rental housing developments to keep enough units affordable to lower-income households and places related duties on the governing body, housing sponsor, and city or county.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 7. Multifamily Rental Housing [52075 - 52098] ( Chapter 7 added by Stats. 2002, Ch. 12, Sec. 1. ) ## ARTICLE 1. Financing [52075 - 52087] ( Article 1 added by Stats. 2002, Ch. 12, Sec. 1. ) ## 52080. (a) (1) A multifamily rental housing development financed, or for which financing has been extended or committed pursuant to this chapter from the proceeds of sale of each bond issue, shall at all times during the qualified project period meet the requirement of subparagraph (A) or (B), whichever is elected by the issuer at the time of issuance of the issue for each development: (A) Twenty percent or more of the residential units in the development shall be occupied by individuals whose income is 50 percent or less of area median income. (B) Forty percent or more of the residential units in the development shall be occupied by individuals whose income is 60 percent or less of area median income. As used in this section, “qualified project period,” “income,” and “area median income” shall have the meanings specified in, and shall be determined in accordance with the provisions of, subsection (d) of Section 142 of the Internal Revenue Code of 1986, as amended, and United States Treasury regulations and rulings promulgated pursuant thereto. With respect to a development for which the issuer has elected to meet the requirement of subparagraph (A), the rental payments paid by the occupants of the units meeting the requirement of subparagraph (A) (excluding any supplemental rental assistance from the state, the federal government, or any other public agency to those occupants or on behalf of those units) shall not exceed 30 percent of 50 percent of area median income. With respect to a development for which the issuer has elected to meet the requirement of subparagraph (B), the rental payments paid by the occupants of the units meeting the requirement of subparagraph (B) (excluding any supplemental rental assistance from the state, the federal government, or any other public agency to those occupants or on behalf of those units) shall not exceed 30 percent of 60 percent of area median income. (2) The governing body shall ensure that the local agency issuing permits for the acquisition, construction, rehabilitation, refinancing, or development of the multifamily rental housing development shall consider opportunities to contribute to the economic feasibility of the units and to the provision of units for very low income households through concessions and inducements including, but not limited to, the following: (A) Reductions in construction and design requirements. (B) Reductions in setback and square footage requirements and the ratio of vehicular parking spaces that would otherwise be required. (C) Granting density bonuses. (D) Providing expedited processing of permits. (E) Modifying zoning code requirements to allow mixed use zoning. (F) Reducing or eliminating fees and charges for filing and processing applications, petitions, permits, planning services, water and sewer connections, and other fees and charges. (G) Reducing or eliminating requirements relating to monetary exactions, dedications, reservations of land, or construction of public facilities. (H) Other financial incentives or concessions for the multifamily rental housing development which result in identifiable cost reductions, as determined by the governing body. The governing body shall ensure that the local agency issuing permits for the development considers its responsibilities under this section and makes a good faith effort to enhance the feasibility of the project and to provide housing for lower income households and very low income households. (3) The governing body shall not permit a selection criteria to be applied to certificate holders under Section 8 of the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f) that is more burdensome than the criteria applied to all other prospective tenants. (4) It is the intent of the Legislature that the governing body finance projects that assist in meeting the urgent need for providing shelter for lower income households, very low income households, and persons and families of low or moderate income. To that end, the quality of materials and the amenities provided should not be excessive so as to hinder the prospect of achieving the stated goal. (5) It is the intent of the Legislature that the governing body finance projects that assist in meeting the urgent need for providing housing for families. To that end, developments with three- and four-bedroom units affordable to larger families shall have priority over competing developments. (b) As a condition of financing pursuant to this chapter, the housing sponsor shall enter into a regulatory agreement with the city or county providing that units reserved for occupancy by lower income households remain available on a priority basis for occupancy until the bonds are retired. As a condition of financing provided by bonds issued on or after January 1, 1991, the housing sponsor shall enter into a regulatory agreement with the city or county providing that units reserved for occupancy by lower income households remain available on a priority basis for occupancy for the qualified project period. The regulatory agreement shall contain a provision making the covenants and conditions of the agreement binding upon successors in interest of the housing sponsor. The regulatory agreement shall be recorded in the office of the county recorder of the county in which the multifamily rental housing development is located. The regulatory agreement shall be recorded in the grantor-grantee index to the name of the property owner as grantor and to the name of the city or county as grantee. (c) The governing body shall ensure that units occupied by lower income households are of comparable quality and offer a range of sizes and number of bedrooms comparable to the units that are available to other tenants. (d) (1) The city or county shall give priority to processing construction loans and mortgage loans or may take other steps such as reducing loan fees or other local fees for multifamily rental developments which incorporate innovative and energy-efficient techniques that reduce development or operating costs and that have the lowest feasible per unit cost, as determined by the city or county, based on efficiency of design or the elimination of improvements that are not required by applicable building standards. (2) The city or county shall give equal priority to processing construction loans and mortgage loans or may take other steps such as reducing loan fees or other local fees on multifamily rental housing developments that do any of the following: (A) Utilize federal housing or development assistance. (B) Utilize redevelopment funds or other local financial assistance, including, but not limited to, contributions of land. (C) Are sponsored by a nonprofit housing organization. (D) Provide a significant number of housing units, as determined by the city or county, as part of a coordinated jobs and housing plan adopted by the city or county. (E) Exceeds the ratios specified in subparagraph (A) or (B) of paragraph (1) of subdivision (a) or restricts the occupancy for these units for the longest period beyond the required minimum number of years. (e) (1) New and existing rental housing developments may be syndicated after prior written approval of the governing body. The governing body shall grant that approval only after the city or county determines that the terms and conditions of the syndication comply with this section. (2) The terms and conditions of the syndication shall not reduce or limit any of the requirements of this chapter or regulations adopted or documents executed pursuant to this chapter. No requirements of the city or county shall be subordinated to the syndication agreement. A syndication shall not result in the provision of fewer assisted units, or the reduction of any benefits or services, than were in existence prior to the syndication agreement. (f) At the option of the city or county, the amendments to this subdivision made by Chapter 907 of the Statutes of 1983 may be made applicable to any multifamily rental housing development financed by the issuance, on or after September 3, 1982, of bonds authorized by this chapter. (g) Following the expiration or termination of the qualified project period, except in the event of foreclosure and redemption of the bonds, deed in lieu of foreclosure, eminent domain, or action of a federal agency preventing enforcement, units required to be reserved for occupancy pursuant to subdivision (a) and financed or refinanced with proceeds of bonds issued pursuant to this section on or after January 1, 1991, or refinanced with the proceeds of bonds issued pursuant to Section 53583 of the Government Code or any charter city authority on or after January 1, 2007, shall remain available to any eligible household occupying a reserved unit at the date of expiration or termination, at a rent not greater than the amount set forth by subdivision (a), until the earliest of any of the following occur: (1) The household’s income exceeds 140 percent of the maximum eligible income specified in subdivision (a). (2) The household voluntarily moves or is evicted for “good cause.” “Good cause” for the purposes of this section, means the nonpayment of rent or allegation of facts necessary to prove major, or repeated minor, violations of material provisions of the occupancy agreement which detrimentally affect the health and safety of other persons or the structure, the fiscal integrity of the development, or the purposes or special programs of the development. (3) Thirty years after the date of the commencement of the qualified project period. (4) The sponsor pays the relocation assistance and benefits to tenants as provided in subdivision (b) of Section 7264 of the Government Code. (5) The amendment to this subdivision made during the 2005-06 Regular Session of the Legislature is declaratory of existing law. (h) During the three years prior to expiration of the qualified project period, the sponsor shall continue to make available to eligible households reserved units that have been vacated to the same extent that nonreserved units are made available to noneligible households. (i) This section shall not be construed to require a city or county to monitor the sponsor’s compliance with the provisions of subdivision (g). (j) The requirements of subdivisions (g) to (i), inclusive, shall be contained in a regulatory agreement required pursuant to subdivision (b). (k) Notwithstanding Section 1461 of the Civil Code, the provisions of this section shall run with the land and may be enforced either in law or in equity by any resident, local agency, entity, or by any other person adversely affected by an owner’s failure to comply with this section. (Amended by Stats. 2006, Ch. 890, Sec. 18. Effective January 1, 2007.)
  190. 52080.5.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 7. Multifamily Rental Housing [52075 - 52098] ( Chapter 7 added by Stats. 2002, Ch. 12, Sec. 1. ) ## ARTICLE 1. Financing [52075 - 52087] ( Article 1 added by Stats. 2002, Ch. 12, Sec. 1. )

    Verify source ↗

    When refunding certain multifamily housing bonds, the city, county, or city and county must keep the income-restricted units occupied by or available to low- and very low-income households for the required period.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 7. Multifamily Rental Housing [52075 - 52098] ( Chapter 7 added by Stats. 2002, Ch. 12, Sec. 1. ) ## ARTICLE 1. Financing [52075 - 52087] ( Article 1 added by Stats. 2002, Ch. 12, Sec. 1. ) ## 52080.5. (a) (1) When refunding revenue bonds for multifamily housing which were previously issued pursuant to Section 52080, the city, county, or city and county shall ensure that rental units required, by this chapter or by applicable federal law at the time the original bonds were issued, to be reserved for occupancy for low- and very low income households shall remain occupied by, or made available to, those persons at least until the later of the following: (A) The date originally so required. (B) As long as any bonds remain outstanding with respect to the development. (2) For bonds previously issued to finance a development where all of the units, other than management units, are, at the time of the refunding, subsidized by a housing assistance payments contract for new construction and substantial rehabilitation pursuant to Section 8 of the United States Housing Act of 1937 (42 U.S.C. Sec. 1437f), subparagraph (B) of paragraph (1) shall refer to a period of time until the termination of the contract. (b) The city, county, or city and county may determine that the period set forth in paragraph (1) of subdivision (a) shall not apply to the refunding of previously issued revenue bonds for which there is a mandatory redemption or acceleration as a result of default under the terms of the existing loan agreement or other security documents. (Added by Stats. 2002, Ch. 12, Sec. 1. Effective March 11, 2002.)
  191. 52081.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 7. Multifamily Rental Housing [52075 - 52098] ( Chapter 7 added by Stats. 2002, Ch. 12, Sec. 1. ) ## ARTICLE 1. Financing [52075 - 52087] ( Article 1 added by Stats. 2002, Ch. 12, Sec. 1. )

    Verify source ↗

    For this article, “housing sponsor” means a person defined in Section 52016.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 7. Multifamily Rental Housing [52075 - 52098] ( Chapter 7 added by Stats. 2002, Ch. 12, Sec. 1. ) ## ARTICLE 1. Financing [52075 - 52087] ( Article 1 added by Stats. 2002, Ch. 12, Sec. 1. ) ## 52081. For purposes of this article, “housing sponsor” means a person as defined in Section 52016. (Added by Stats. 2002, Ch. 12, Sec. 1. Effective March 11, 2002.)
  192. 52085.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 7. Multifamily Rental Housing [52075 - 52098] ( Chapter 7 added by Stats. 2002, Ch. 12, Sec. 1. ) ## ARTICLE 1. Financing [52075 - 52087] ( Article 1 added by Stats. 2002, Ch. 12, Sec. 1. )

    Verify source ↗

    Bonds issued by a city, county, or city and county under this chapter, and their transfer and income, are exempt from taxation except inheritance and gift taxes.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 7. Multifamily Rental Housing [52075 - 52098] ( Chapter 7 added by Stats. 2002, Ch. 12, Sec. 1. ) ## ARTICLE 1. Financing [52075 - 52087] ( Article 1 added by Stats. 2002, Ch. 12, Sec. 1. ) ## 52085. The primary purpose of this chapter is to meet the multifamily rental housing needs of persons and families of low or moderate income. The exercise of the powers granted by this division shall be in all respects for the benefit of the people of this state and for their health and welfare. Therefore, any bonds issued by a city, county, or city and county pursuant to this chapter, their transfer, and the income therefrom shall at all times be free from taxation by the state or any political subdivision or other instrumentality of the state, excepting inheritance and gift taxes. (Added by Stats. 2002, Ch. 12, Sec. 1. Effective March 11, 2002.)
  193. 52086.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 7. Multifamily Rental Housing [52075 - 52098] ( Chapter 7 added by Stats. 2002, Ch. 12, Sec. 1. ) ## ARTICLE 1. Financing [52075 - 52087] ( Article 1 added by Stats. 2002, Ch. 12, Sec. 1. )

    Verify source ↗

    Certain cities and counties may agree to cooperate and exercise their powers together to finance multifamily rental housing development.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 7. Multifamily Rental Housing [52075 - 52098] ( Chapter 7 added by Stats. 2002, Ch. 12, Sec. 1. ) ## ARTICLE 1. Financing [52075 - 52087] ( Article 1 added by Stats. 2002, Ch. 12, Sec. 1. ) ## 52086. Two or more cities in the same county, or a county and one or more cities within the county, or two or more counties, may enter into an agreement to join or cooperate with one another in the exercise jointly, or otherwise, of any or all of their powers for the purpose of financing multifamily rental housing development pursuant to this chapter. (Added by Stats. 2002, Ch. 12, Sec. 1. Effective March 11, 2002.)
  194. 52087.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 7. Multifamily Rental Housing [52075 - 52098] ( Chapter 7 added by Stats. 2002, Ch. 12, Sec. 1. ) ## ARTICLE 1. Financing [52075 - 52087] ( Article 1 added by Stats. 2002, Ch. 12, Sec. 1. )

    Verify source ↗

    The notice requirements in Government Code Section 65863.10 apply to multifamily rental housing that receives financial assistance under this chapter.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 7. Multifamily Rental Housing [52075 - 52098] ( Chapter 7 added by Stats. 2002, Ch. 12, Sec. 1. ) ## ARTICLE 1. Financing [52075 - 52087] ( Article 1 added by Stats. 2002, Ch. 12, Sec. 1. ) ## 52087. The same notice requirements specified in Section 65863.10 of the Government Code shall apply to multifamily rental housing that receives financial assistance pursuant to this chapter. (Added by Stats. 2002, Ch. 12, Sec. 1. Effective March 11, 2002.)
  195. 52090.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 7. Multifamily Rental Housing [52075 - 52098] ( Chapter 7 added by Stats. 2002, Ch. 12, Sec. 1. ) ## ARTICLE 2. State Assistance [52090 - 52092] ( Article 2 added by Stats. 2002, Ch. 12, Sec. 1. )

    Verify source ↗

    Cities and counties may use this article as an alternative way to issue bonds for construction loans and mortgage loans for multifamily rental housing developments.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 7. Multifamily Rental Housing [52075 - 52098] ( Chapter 7 added by Stats. 2002, Ch. 12, Sec. 1. ) ## ARTICLE 2. State Assistance [52090 - 52092] ( Article 2 added by Stats. 2002, Ch. 12, Sec. 1. ) ## 52090. This article constitutes an alternative method for cities and counties to issue bonds for making construction loans and mortgage loans for multifamily rental housing developments pursuant to the provisions of this chapter. (Added by Stats. 2002, Ch. 12, Sec. 1. Effective March 11, 2002.)
  196. 52090.5.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 7. Multifamily Rental Housing [52075 - 52098] ( Chapter 7 added by Stats. 2002, Ch. 12, Sec. 1. ) ## ARTICLE 2. State Assistance [52090 - 52092] ( Article 2 added by Stats. 2002, Ch. 12, Sec. 1. )

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    The agency and any city or county may make an agreement that lets the agency sell certain bonds and run a program using the proceeds.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 7. Multifamily Rental Housing [52075 - 52098] ( Chapter 7 added by Stats. 2002, Ch. 12, Sec. 1. ) ## ARTICLE 2. State Assistance [52090 - 52092] ( Article 2 added by Stats. 2002, Ch. 12, Sec. 1. ) ## 52090.5. The agency and any city or county may enter into an agreement which provides that the agency may sell bonds authorized pursuant to Chapter 4 (commencing with Section 52030) for the city or county and operate a program with the proceeds of the sale for the purpose of providing funds for construction loans and mortgage loans for multifamily rental housing developments within the city or county and for the provision of capital improvements in connection with and determined necessary to the multifamily rental housing. (Added by Stats. 2002, Ch. 12, Sec. 1. Effective March 11, 2002.)
  197. 52091.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 7. Multifamily Rental Housing [52075 - 52098] ( Chapter 7 added by Stats. 2002, Ch. 12, Sec. 1. ) ## ARTICLE 2. State Assistance [52090 - 52092] ( Article 2 added by Stats. 2002, Ch. 12, Sec. 1. )

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    Agreements under Section 52090.5 must include specified bond, financing, and housing provisions, and the agency must approve bond counsel, make loans, and supervise project construction and management.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 7. Multifamily Rental Housing [52075 - 52098] ( Chapter 7 added by Stats. 2002, Ch. 12, Sec. 1. ) ## ARTICLE 2. State Assistance [52090 - 52092] ( Article 2 added by Stats. 2002, Ch. 12, Sec. 1. ) ## 52091. Any agreement made pursuant to Section 52090.5 shall contain all of the following provisions: (a) Limitations on the maximum amount of bonds to be issued by a city or county. (b) A requirement that all bonds and any prospectus in connection with the bonds contain a legend condition to the following effect: “Neither the faith and credit of the State of California or the agency nor the taxing power of the state is pledged to the payment of principal or interest on this bond.” (c) A requirement that the agency approve the bond counsel selected by the city or county. (d) The designation of criteria for multifamily rental housing developments eligible for financing; the number of units which shall be available for occupancy by persons of low income, which shall not be less than 20 percent of the total units; the amount to be allocated to a bond reserve fund; and, any other matters which the agency finds necessary or desirable. (e) That the agency shall make construction loans and mortgage loans for multifamily rental housing developed within the city or county. (f) That the agency shall supervise all construction and management of multifamily rental housing developments financed pursuant to this chapter on behalf of the city or county, and with the same powers and duties under this chapter, to ensure that all requirements of this part are met. (Added by Stats. 2002, Ch. 12, Sec. 1. Effective March 11, 2002.)
  198. 52091.5.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 7. Multifamily Rental Housing [52075 - 52098] ( Chapter 7 added by Stats. 2002, Ch. 12, Sec. 1. ) ## ARTICLE 2. State Assistance [52090 - 52092] ( Article 2 added by Stats. 2002, Ch. 12, Sec. 1. )

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    Bonds issued under this article are not treated as agency bonds for Section 51350 limitation purposes.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 7. Multifamily Rental Housing [52075 - 52098] ( Chapter 7 added by Stats. 2002, Ch. 12, Sec. 1. ) ## ARTICLE 2. State Assistance [52090 - 52092] ( Article 2 added by Stats. 2002, Ch. 12, Sec. 1. ) ## 52091.5. Bonds issued pursuant to this article shall not be deemed bonds of the agency for the purposes of any limitations contained in Section 51350. (Added by Stats. 2002, Ch. 12, Sec. 1. Effective March 11, 2002.)
  199. 52092.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 7. Multifamily Rental Housing [52075 - 52098] ( Chapter 7 added by Stats. 2002, Ch. 12, Sec. 1. ) ## ARTICLE 2. State Assistance [52090 - 52092] ( Article 2 added by Stats. 2002, Ch. 12, Sec. 1. )

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    The agency must adopt uniform regulations for administering local programs under this article, and those programs must be run consistently with this chapter.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 7. Multifamily Rental Housing [52075 - 52098] ( Chapter 7 added by Stats. 2002, Ch. 12, Sec. 1. ) ## ARTICLE 2. State Assistance [52090 - 52092] ( Article 2 added by Stats. 2002, Ch. 12, Sec. 1. ) ## 52092. The agency shall adopt uniform regulations for administration of local programs under this article. Local programs conducted by the agency under this article shall be administered in a manner consistent with this chapter. (Added by Stats. 2002, Ch. 12, Sec. 1. Effective March 11, 2002.)
  200. 52095.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 7. Multifamily Rental Housing [52075 - 52098] ( Chapter 7 added by Stats. 2002, Ch. 12, Sec. 1. ) ## ARTICLE 3. Miscellaneous [52095- 52095.] ( Article 3 added by Stats. 2002, Ch. 12, Sec. 1. )

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    If a complaint is made about a Section 52080 restriction violation, the city or county must investigate and report back, and if a violation exists, take prompt action to fix it. An aggrieved person may also seek a judicial remedy.

    ## Health and Safety Code - HSC ## DIVISION 31. HOUSING AND HOME FINANCE [50000 - 54913] ( Division 31 repealed and added by Stats. 1977, Ch. 610. ) ## PART 5. LOCAL HOUSING FINANCE AGENCIES [52000 - 52106] ( Part 5 added by Stats. 1979, Ch. 1069. ) ## CHAPTER 7. Multifamily Rental Housing [52075 - 52098] ( Chapter 7 added by Stats. 2002, Ch. 12, Sec. 1. ) ## ARTICLE 3. Miscellaneous [52095- 52095.] ( Article 3 added by Stats. 2002, Ch. 12, Sec. 1. ) ## 52095. Whenever a complaint is received concerning a violation of the restrictions imposed pursuant to Section 52080, the city or county shall investigate promptly and make a report to the complaining party on whether the violation existed and whether it persists, and if it persists, what action the city or county will take to remedy the violation. When the city or county determines that a violation exists, whether determined upon an investigation of a complaint or on its own motion, the city or county shall take all appropriate action, including necessary legal action, to promptly eliminate the violation. Notwithstanding any provision of this section, any person aggrieved by a violation may seek a judicial remedy without regard to whether a complaint has been made to the city or county or whether the city or county is then taking any action to remedy the violation. (Added by Stats. 2002, Ch. 12, Sec. 1. Effective March 11, 2002.)

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