California Assembly Bill AB1529 Introduced / Bill

 BILL NUMBER: AB 1529INTRODUCED BILL TEXT INTRODUCED BY Assembly Member Salas FEBRUARY 27, 2009 An act to amend Section 51345 of the Health and Safety Code, relating to housing. LEGISLATIVE COUNSEL'S DIGEST AB 1529, as introduced, Salas. Home Purchase Assistance Program: limitations. Existing law establishes the Home Purchase Assistance Program, administered by the California Housing Finance Agency, to assist first-time homebuyers to utilize existing mortgage financing available pursuant to existing law. Existing law limits the term of the home purchase assistance to the term of the primary loan. This bill would make a nonsubstantive change to this provision of law. Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. AB 1529, as introduced, Salas. Home Purchase Assistance Program: limitations. Existing law establishes the Home Purchase Assistance Program, administered by the California Housing Finance Agency, to assist first-time homebuyers to utilize existing mortgage financing available pursuant to existing law. Existing law limits the term of the home purchase assistance to the term of the primary loan. This bill would make a nonsubstantive change to this provision of law. Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 51345 of the Health and Safety Code is amended to read: 51345. (a) The agency shall administer a home purchase assistance program in accordance with this chapter. The purpose of the home purchase assistance program is to assist first-time homebuyers to utilize existing mortgage financing available pursuant to this part or Division 4 (commencing with Section 800) of the Military and Veterans Code with the additional financial resources made available pursuant to Part 8 (commencing with Section 53130). (b) Home purchase assistance under this chapter shall include, but not be limited to: (1) an interest rate subsidy to reduce the interest rate, (2) a deferred-payment, low-interest, second-mortgage loan to reduce the principal and interest payments, and (3) downpayment assistance to make financing affordable to first-time homebuyers. (c) In no case shall the interest rate subsidy reduce the effective interest rate to the borrower below 3 percent per annum, nor shall the deferred-payment, low-interest, second mortgage loan exceed 49 percent of the total debt financing necessary to purchase the home. (d) The amount of home purchase assistance shall be a second mortgage loan secured by a deed of trust of second priority to the primary financing provided by the agency or the Department of Veterans Affairs. The term of the home purchase assistance  shall   may  not exceed the term of the primary loan. (e) The amount of home purchase assistance shall be due and payable at the end of the term, upon the sale of the home, or upon refinancing. The borrower may refinance the mortgages on the home if the principal of and accrued interest on the second mortgage loan securing the home purchase assistance are repaid in full. All repayments shall be deposited in the fund. SECTION 1. Section 51345 of the Health and Safety Code is amended to read: 51345. (a) The agency shall administer a home purchase assistance program in accordance with this chapter. The purpose of the home purchase assistance program is to assist first-time homebuyers to utilize existing mortgage financing available pursuant to this part or Division 4 (commencing with Section 800) of the Military and Veterans Code with the additional financial resources made available pursuant to Part 8 (commencing with Section 53130). (b) Home purchase assistance under this chapter shall include, but not be limited to: (1) an interest rate subsidy to reduce the interest rate, (2) a deferred-payment, low-interest, second-mortgage loan to reduce the principal and interest payments, and (3) downpayment assistance to make financing affordable to first-time homebuyers. (c) In no case shall the interest rate subsidy reduce the effective interest rate to the borrower below 3 percent per annum, nor shall the deferred-payment, low-interest, second mortgage loan exceed 49 percent of the total debt financing necessary to purchase the home. (d) The amount of home purchase assistance shall be a second mortgage loan secured by a deed of trust of second priority to the primary financing provided by the agency or the Department of Veterans Affairs. The term of the home purchase assistance  shall   may  not exceed the term of the primary loan. (e) The amount of home purchase assistance shall be due and payable at the end of the term, upon the sale of the home, or upon refinancing. The borrower may refinance the mortgages on the home if the principal of and accrued interest on the second mortgage loan securing the home purchase assistance are repaid in full. All repayments shall be deposited in the fund.