California Assembly Bill AB2280 Amended / Bill

 BILL NUMBER: AB 2280AMENDED BILL TEXT AMENDED IN ASSEMBLY APRIL 21, 2016 INTRODUCED BY Assembly Member Ridley-Thomas FEBRUARY 18, 2016 An act to add Section 50964 to the Health and Safety Code, relating to housing. LEGISLATIVE COUNSEL'S DIGEST AB 2280, as amended, Ridley-Thomas. California Housing Finance Agency: program eligibility requirements: changes. Existing law creates the California Housing Finance Agency, which is administered by a board of directors and which is supervised on a day-to-day basis by an executive director. Existing law provides that the primary purpose of the agency is to meet the housing needs of persons and families of low to moderate income. Existing law authorizes the agency to make loans to housing sponsors for housing developments and to qualified mortgage lenders, among others. This bill would  generally prohibit   require  the  agency from changing   agency, within 5 business days of making a change to  the eligibility requirements for a housing or lending program that the agency  administrates without providing   administrates, to provide  a lender or other party participating in the program notice of the change  at least   unless providing that notice within  5 business  days prior to the change taking effect.   days would impose an undue burden on the agency.  The bill would  require   authorize  the notice to be provided by a program  bulletin and that the program bulletin be posted on the agency's Internet Web site. The bill would permit the agency to make a change in eligibility requirements without satisfying the notification requirements upon a specified finding of the agency's executive director or a vote of the board of directors. The bill would require the agency to require a lender or other party participating in these programs to have protocols that provide timely notification to representatives of the participants of changes to program eligibility requirements.  bulletin.  Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. It is the intent of the Legislature in enacting this act to do all of the following: (a) Promote home ownership in California by establishing stability and predictability in the programs administered by the California Housing Finance Agency. (b) To improve the confidence of prospective home buyers in government programs designed to assist them in the complex process of buying a home and the ability of prospective home buyers to purchase a home. (c) To ensure that prospective home buyers who are in the process of purchasing a home through a program administered by the California Housing Finance Agency receive notice as soon as practically possible regarding changes in eligibility requirements, so they are best positioned to secure the financing that they need and deserve. SEC. 2. Section 50964 is added to the Health and Safety Code, to read: 50964.  (a)    The agency  shall not   shall, within five business days of making a  change  to  the eligibility requirements for a housing or lending program that the agency administers, however that program may be characterized, including, but not limited to, the California Homebuyer's Downpayment Assistance Program (Chapter 11 (commencing with Section 51500)) and the Mortgage Credit Certificate Program (Chapter 3.5 (commencing with Section  50172),  50172) of  Part 1),  without providing   provide  a lender or other party participating in the program notice of the  change at least five business days prior to the change taking effect.   change unless providing that notice within five business days would impose an undue burden on the agency.  The notification  shall   may  be provided by means of a program bulletin.  The requirements of this subdivision may be excepted only as provided in this section.   (b) Except as otherwise provided in subdivision (c), the agency shall post a program bulletin notifying of a change in eligibility in a housing or lending program that it administers on its Internet Web site at the earliest practicable time.   (c) The agency may change eligibility requirements without the five-business-day notification period if the executive director makes a determination that both of the following are true:   (1) The change in eligibility is required by federal law.   (2) The agency will lose federal funding if the eligibility requirements are subject to the five-business-day notification period.   (d) Notwithstanding subdivision (a) or (c), the board of directors may change eligibility requirements by majority vote without regard to the five-business-day notification period.   (e) The agency shall require, as a condition of participating in a housing or lending program that the agency administers, that a lender or other participating party has protocols that provide for timely notification to its representatives of changes to program eligibility requirements.