State Codes and Statutes

Statutes > California > Hsc > 50650-50650.7

HEALTH AND SAFETY CODE
SECTION 50650-50650.7



50650.  The Legislature finds and declares as follows:
   (a) An adequate supply of safe and affordable housing is the
foundation for strong and sustainable communities. Owner occupied
housing is a key housing resource, contributing to neighborhood
stability as well as economic vitality.
   (b) In California, homeownership is beyond the reach of a large
segment of the population. There are also many homeowners who lack
the resources to make necessary repairs to their homes, or who would
welcome the opportunity to share them with suitable tenants.
   (c) Reflecting California's diversity, there is a variety of
proven approaches to the promotion of homeownership within the state.
The purpose of the CalHome Program established by this chapter is to
support existing homeownership programs aimed at lower and very low
income households and operated by private nonprofit and local
government agencies, and thereby to increase homeownership, encourage
neighborhood revitalization and sustainable development, and
maximize use of existing homes.
   (d) The CalHome Program is intended to take the place of the
Senior Citizens' Shared Housing Program established by Chapter 3.6
(commencing with Section 50533), which is repealed by the act
enacting this chapter.


50650.1.  This chapter shall be known and may be cited as the
CalHome Program.


50650.2.  The department shall administer this chapter.



50650.3.  (a) Funds appropriated for purposes of this chapter shall
be used to enable low- and very low income households to become or
remain homeowners. Funds shall be provided by the department to local
public agencies or nonprofit corporations as either of the
following:
   (1) Grants for programs that assist individual households.
   (2) Loans that assist development projects involving multiple home
ownership units, including single-family subdivisions.
   (b) (1) Grant funds may be used for first-time homebuyer
downpayment assistance, home rehabilitation, including the
installation or retrofit of ignition resistant exterior components on
existing manufactured homes, mobilehomes, and accessory structures
required pursuant to Article 2.3 (commencing with Section 4200) of
Subchapter 2 of Chapter 3 of Division 1 of Title 25 of the California
Code of Regulations, homebuyer counseling, home acquisition and
rehabilitation, or self-help mortgage assistance programs, or for
technical assistance for self-help and shared housing home ownership.
   (2) Home rehabilitation funding for the purpose of installing
ignition resistant components on manufactured homes, mobilehomes, or
accessory structures pursuant to this subdivision shall not be
conditioned upon the rehabilitation of additional or unrelated home
components unless that rehabilitation is required pursuant to Article
2.3 (commencing with Section 4200) of Subchapter 2 of Chapter 3 of
Division 1 of Title 25 of the California Code of Regulations. In
administering funding for this purpose, local public agencies and
nonprofit corporations may consider the condition and age of the
manufactured home or mobilehome, including whether the home was
constructed on or after June 15, 1976, in accordance with federal
standards and whether the available funds could be more effectively
used to replace the manufactured home or mobilehome.
   (c) Except as provided in subdivision (e), loan funds may be used
for purchase of real property, site development, predevelopment, and
construction period expenses incurred on home ownership development
projects, and permanent financing for mutual housing or cooperative
developments. Upon completion of construction, the department may
convert project loans into grants for programs of assistance to
individual homeowners. Financial assistance provided to individual
households shall be in the form of deferred payment loans, repayable
upon sale or transfer of the homes, when they cease to be
owner-occupied, or upon the loan maturity date. Financial assistance
may be provided in the form of a secured forgivable loan to an
individual household to rehabilitate, repair, or replace manufactured
housing located in a mobilehome park and not permanently affixed to
a foundation. The loan shall be due and payable in 20 years, with 10
percent of the original principal to be forgiven annually for each
additional year beyond the 10th year that the home is owned and
continuously occupied by the borrower. Not more than 10 percent of
the funds available for the purposes of this chapter in a fiscal year
shall be used for financial assistance in the form of secured
forgivable loans.
   (d) All loan repayments shall be used for activities allowed under
this section, and shall be governed by a reuse plan approved by the
department. Those reuse plans may provide for loan servicing by the
grant recipient or a third-party local government agency or nonprofit
corporation.
   (e) Notwithstanding subdivision (c), loans provided pursuant to
the CalHome Program Disaster Assistance for Imperial County that have
been made for the purpose of rehabilitation, reconstruction, or
replacement of lower income owner-occupied manufactured homes shall
be due and payable in 10 years, with 20 percent of the original
principal to be forgiven annually for each additional year beyond the
fifth year that the manufactured home is owned and continuously
occupied by the borrower.



50650.4.  (a) To be eligible to receive a grant or loan, local
public agencies or nonprofit corporations shall demonstrate
sufficient organizational stability and capacity to carry out the
activity for which they are requesting funds, including, where
applicable, the capacity to manage a portfolio of individual loans
over an extended time period. Capacity may be demonstrated by
substantial successful experience performing similar activities, or
through other means acceptable to the department. In administering
the CalHome program, the department may permit local agencies and
nonprofit corporations to apply their own underwriting guidelines
when evaluating CalHome rehabilitation loan applications, following
prior review and approval of those guidelines by the department. The
local agency or nonprofit corporation shall not subsequently alter
its underwriting guidelines with respect to the use of CalHome funds
without review and approval by the department. In allocating funds,
the department shall utilize a competitive application process, using
weighted evaluation criteria, including, but not limited to, the
extent that the program or project utilizes volunteer or self-help
labor, trains youth and young adults in construction skills, creates
balanced communities, involves community participation, or whether
the program or project contributes toward community revitalization.
To the extent feasible, the application process shall ensure a
reasonable geographic distribution of funds.
   (b) In administering department funds received pursuant to
subdivision (a), local public agencies and nonprofit corporations
shall not deny the funding application of, or apply different
underwriting guidelines to, a housing program or project solely on
the basis of either of the following:
   (1) The home is a manufactured home or mobilehome, as defined in
Sections 18007 and 18008.
   (2) The home is located in a mobilehome park or in a manufactured
housing community, as defined in Sections 18210.7 and 18214.




50650.5.  For the purposes of this chapter, all of the following
shall apply:
   (a) Mutual housing, community land trusts, and limited equity
cooperative housing shall be deemed to be forms of homeownership and
developments of those types of housing, as defined in subdivision
(b), shall be eligible to receive assistance under the CalHome
Program. The department may require that mutual housing, community
land trust, or limited equity cooperative applicants not
simultaneously apply for and receive funding through the department's
rental housing programs for the same projects for which CalHome
assistance is sought. For mutual housing, community land trust
projects that do not convey an interest in real estate to the
homebuyer, and limited equity cooperative projects, all of the
following shall apply:
   (1) Program funds shall be used for permanent financing only.
   (2) The department shall enter into a regulatory agreement
limiting occupant incomes, occupancy charges, and share purchase
terms for 55 years.
   (3) Notwithstanding Section 50650.3, program assistance shall be
provided in the form of a deferred payment loan.
   (b) As used in this section, "mutual housing development" means a
housing development owned and sponsored by a nonprofit corporation or
a limited partnership in which the nonprofit corporation is the sole
general partner, and all of the following requirements are met:
   (1) The nonprofit corporation is exempt from taxes under Section
501(c)(3) of the Internal Revenue Code or subdivision (d) of Section
23701 of the Revenue and Taxation Code.
   (2) The nonprofit corporation has as one of its principal purposes
the advancement of mutual housing.
   (3) A majority of the board of directors of the nonprofit
corporation sponsor are residents or former residents of developments
sponsored by the nonprofit corporation.
   (4) The nonprofit corporation agrees to assist the residents of
the development in setting up a resident council, and the operating
budget for the development provides for ongoing financial support to
allow the resident council to carry out its activities.
   (c) Lower income participants in a qualified mutual housing
development that is assisted pursuant to this chapter shall not be
required to have a vested ownership interest in the property.
   (d) (1) Funds provided under this chapter may be used to finance
either of the following:
   (A) The purchase of land beneath a manufactured home or mobilehome
by the owner of the home.
   (B) The purchase of both the land beneath a manufactured home or
mobilehome and the home.
   (2) (A) A loan to purchase a subdivided lot in a manufactured
housing community or mobilehome park, or both a subdivided lot and
the manufactured home or mobilehome that is located on the lot, may
be secured either by the land alone or by both the land and the
manufactured home or mobilehome.
   (B) A loan to purchase an interest in an entity that owns a
manufactured housing community or mobilehome park may be secured by
an interest in the entity, a manufactured home, or a mobilehome, or
both an interest in the entity and the home.
   (3) A manufactured home or mobilehome shall not be required to be
placed on a permanent foundation as a condition of receiving
financing under this chapter.
   (4) Funds provided under this chapter shall not be used for a loan
to purchase the first lot or space in a manufactured housing
community or mobilehome park at the time of the initial conversion of
the park to resident ownership unless the conversion meets the
two-thirds signature requirement in subdivision (a) of Section
66428.1 of the Government Code, or the transfer of the park to
resident ownership has qualified for the change of ownership
exclusion under Section 62.1 of the Revenue and Taxation Code.
   (5) For purposes of this subdivision, "land beneath a manufactured
home or mobilehome" means either a subdivided lot in a manufactured
housing community or mobilehome park or a membership, share,
certificate, or other interest in the entity that owns the
manufactured housing community or mobilehome park, including, but not
limited to, a limited equity cooperative, community land trust, or
mutual housing association.
   (e) Subdivision (a) shall not apply to the financing of an
interest in a manufactured housing community or mobilehome park that
is organized as mutual housing or a limited equity cooperative.



50650.6.  The department may use up to 5 percent of the funds
appropriated for the purposes of this chapter for its costs in
administering the program.


50650.7.  For appropriations of fifteen million dollars
($15,000,000) or less, the department may administer the funds using
guidelines that shall not be subject to the Administrative Procedure
Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Title 2
of the Government Code). If an appropriation exceeds that amount,
the department may administer the funds using guidelines for 24
months, during which time those guidelines shall not be subject to
the Administrative Procedure Act. The guidelines and any regulations
governing the CalHome Program shall include, among other things, loan
terms and limits, underwriting standards, home price limits,
application procedures and selection criteria, loan and grant
documentation requirements, and monitoring requirements.


State Codes and Statutes

Statutes > California > Hsc > 50650-50650.7

HEALTH AND SAFETY CODE
SECTION 50650-50650.7



50650.  The Legislature finds and declares as follows:
   (a) An adequate supply of safe and affordable housing is the
foundation for strong and sustainable communities. Owner occupied
housing is a key housing resource, contributing to neighborhood
stability as well as economic vitality.
   (b) In California, homeownership is beyond the reach of a large
segment of the population. There are also many homeowners who lack
the resources to make necessary repairs to their homes, or who would
welcome the opportunity to share them with suitable tenants.
   (c) Reflecting California's diversity, there is a variety of
proven approaches to the promotion of homeownership within the state.
The purpose of the CalHome Program established by this chapter is to
support existing homeownership programs aimed at lower and very low
income households and operated by private nonprofit and local
government agencies, and thereby to increase homeownership, encourage
neighborhood revitalization and sustainable development, and
maximize use of existing homes.
   (d) The CalHome Program is intended to take the place of the
Senior Citizens' Shared Housing Program established by Chapter 3.6
(commencing with Section 50533), which is repealed by the act
enacting this chapter.


50650.1.  This chapter shall be known and may be cited as the
CalHome Program.


50650.2.  The department shall administer this chapter.



50650.3.  (a) Funds appropriated for purposes of this chapter shall
be used to enable low- and very low income households to become or
remain homeowners. Funds shall be provided by the department to local
public agencies or nonprofit corporations as either of the
following:
   (1) Grants for programs that assist individual households.
   (2) Loans that assist development projects involving multiple home
ownership units, including single-family subdivisions.
   (b) (1) Grant funds may be used for first-time homebuyer
downpayment assistance, home rehabilitation, including the
installation or retrofit of ignition resistant exterior components on
existing manufactured homes, mobilehomes, and accessory structures
required pursuant to Article 2.3 (commencing with Section 4200) of
Subchapter 2 of Chapter 3 of Division 1 of Title 25 of the California
Code of Regulations, homebuyer counseling, home acquisition and
rehabilitation, or self-help mortgage assistance programs, or for
technical assistance for self-help and shared housing home ownership.
   (2) Home rehabilitation funding for the purpose of installing
ignition resistant components on manufactured homes, mobilehomes, or
accessory structures pursuant to this subdivision shall not be
conditioned upon the rehabilitation of additional or unrelated home
components unless that rehabilitation is required pursuant to Article
2.3 (commencing with Section 4200) of Subchapter 2 of Chapter 3 of
Division 1 of Title 25 of the California Code of Regulations. In
administering funding for this purpose, local public agencies and
nonprofit corporations may consider the condition and age of the
manufactured home or mobilehome, including whether the home was
constructed on or after June 15, 1976, in accordance with federal
standards and whether the available funds could be more effectively
used to replace the manufactured home or mobilehome.
   (c) Except as provided in subdivision (e), loan funds may be used
for purchase of real property, site development, predevelopment, and
construction period expenses incurred on home ownership development
projects, and permanent financing for mutual housing or cooperative
developments. Upon completion of construction, the department may
convert project loans into grants for programs of assistance to
individual homeowners. Financial assistance provided to individual
households shall be in the form of deferred payment loans, repayable
upon sale or transfer of the homes, when they cease to be
owner-occupied, or upon the loan maturity date. Financial assistance
may be provided in the form of a secured forgivable loan to an
individual household to rehabilitate, repair, or replace manufactured
housing located in a mobilehome park and not permanently affixed to
a foundation. The loan shall be due and payable in 20 years, with 10
percent of the original principal to be forgiven annually for each
additional year beyond the 10th year that the home is owned and
continuously occupied by the borrower. Not more than 10 percent of
the funds available for the purposes of this chapter in a fiscal year
shall be used for financial assistance in the form of secured
forgivable loans.
   (d) All loan repayments shall be used for activities allowed under
this section, and shall be governed by a reuse plan approved by the
department. Those reuse plans may provide for loan servicing by the
grant recipient or a third-party local government agency or nonprofit
corporation.
   (e) Notwithstanding subdivision (c), loans provided pursuant to
the CalHome Program Disaster Assistance for Imperial County that have
been made for the purpose of rehabilitation, reconstruction, or
replacement of lower income owner-occupied manufactured homes shall
be due and payable in 10 years, with 20 percent of the original
principal to be forgiven annually for each additional year beyond the
fifth year that the manufactured home is owned and continuously
occupied by the borrower.



50650.4.  (a) To be eligible to receive a grant or loan, local
public agencies or nonprofit corporations shall demonstrate
sufficient organizational stability and capacity to carry out the
activity for which they are requesting funds, including, where
applicable, the capacity to manage a portfolio of individual loans
over an extended time period. Capacity may be demonstrated by
substantial successful experience performing similar activities, or
through other means acceptable to the department. In administering
the CalHome program, the department may permit local agencies and
nonprofit corporations to apply their own underwriting guidelines
when evaluating CalHome rehabilitation loan applications, following
prior review and approval of those guidelines by the department. The
local agency or nonprofit corporation shall not subsequently alter
its underwriting guidelines with respect to the use of CalHome funds
without review and approval by the department. In allocating funds,
the department shall utilize a competitive application process, using
weighted evaluation criteria, including, but not limited to, the
extent that the program or project utilizes volunteer or self-help
labor, trains youth and young adults in construction skills, creates
balanced communities, involves community participation, or whether
the program or project contributes toward community revitalization.
To the extent feasible, the application process shall ensure a
reasonable geographic distribution of funds.
   (b) In administering department funds received pursuant to
subdivision (a), local public agencies and nonprofit corporations
shall not deny the funding application of, or apply different
underwriting guidelines to, a housing program or project solely on
the basis of either of the following:
   (1) The home is a manufactured home or mobilehome, as defined in
Sections 18007 and 18008.
   (2) The home is located in a mobilehome park or in a manufactured
housing community, as defined in Sections 18210.7 and 18214.




50650.5.  For the purposes of this chapter, all of the following
shall apply:
   (a) Mutual housing, community land trusts, and limited equity
cooperative housing shall be deemed to be forms of homeownership and
developments of those types of housing, as defined in subdivision
(b), shall be eligible to receive assistance under the CalHome
Program. The department may require that mutual housing, community
land trust, or limited equity cooperative applicants not
simultaneously apply for and receive funding through the department's
rental housing programs for the same projects for which CalHome
assistance is sought. For mutual housing, community land trust
projects that do not convey an interest in real estate to the
homebuyer, and limited equity cooperative projects, all of the
following shall apply:
   (1) Program funds shall be used for permanent financing only.
   (2) The department shall enter into a regulatory agreement
limiting occupant incomes, occupancy charges, and share purchase
terms for 55 years.
   (3) Notwithstanding Section 50650.3, program assistance shall be
provided in the form of a deferred payment loan.
   (b) As used in this section, "mutual housing development" means a
housing development owned and sponsored by a nonprofit corporation or
a limited partnership in which the nonprofit corporation is the sole
general partner, and all of the following requirements are met:
   (1) The nonprofit corporation is exempt from taxes under Section
501(c)(3) of the Internal Revenue Code or subdivision (d) of Section
23701 of the Revenue and Taxation Code.
   (2) The nonprofit corporation has as one of its principal purposes
the advancement of mutual housing.
   (3) A majority of the board of directors of the nonprofit
corporation sponsor are residents or former residents of developments
sponsored by the nonprofit corporation.
   (4) The nonprofit corporation agrees to assist the residents of
the development in setting up a resident council, and the operating
budget for the development provides for ongoing financial support to
allow the resident council to carry out its activities.
   (c) Lower income participants in a qualified mutual housing
development that is assisted pursuant to this chapter shall not be
required to have a vested ownership interest in the property.
   (d) (1) Funds provided under this chapter may be used to finance
either of the following:
   (A) The purchase of land beneath a manufactured home or mobilehome
by the owner of the home.
   (B) The purchase of both the land beneath a manufactured home or
mobilehome and the home.
   (2) (A) A loan to purchase a subdivided lot in a manufactured
housing community or mobilehome park, or both a subdivided lot and
the manufactured home or mobilehome that is located on the lot, may
be secured either by the land alone or by both the land and the
manufactured home or mobilehome.
   (B) A loan to purchase an interest in an entity that owns a
manufactured housing community or mobilehome park may be secured by
an interest in the entity, a manufactured home, or a mobilehome, or
both an interest in the entity and the home.
   (3) A manufactured home or mobilehome shall not be required to be
placed on a permanent foundation as a condition of receiving
financing under this chapter.
   (4) Funds provided under this chapter shall not be used for a loan
to purchase the first lot or space in a manufactured housing
community or mobilehome park at the time of the initial conversion of
the park to resident ownership unless the conversion meets the
two-thirds signature requirement in subdivision (a) of Section
66428.1 of the Government Code, or the transfer of the park to
resident ownership has qualified for the change of ownership
exclusion under Section 62.1 of the Revenue and Taxation Code.
   (5) For purposes of this subdivision, "land beneath a manufactured
home or mobilehome" means either a subdivided lot in a manufactured
housing community or mobilehome park or a membership, share,
certificate, or other interest in the entity that owns the
manufactured housing community or mobilehome park, including, but not
limited to, a limited equity cooperative, community land trust, or
mutual housing association.
   (e) Subdivision (a) shall not apply to the financing of an
interest in a manufactured housing community or mobilehome park that
is organized as mutual housing or a limited equity cooperative.



50650.6.  The department may use up to 5 percent of the funds
appropriated for the purposes of this chapter for its costs in
administering the program.


50650.7.  For appropriations of fifteen million dollars
($15,000,000) or less, the department may administer the funds using
guidelines that shall not be subject to the Administrative Procedure
Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Title 2
of the Government Code). If an appropriation exceeds that amount,
the department may administer the funds using guidelines for 24
months, during which time those guidelines shall not be subject to
the Administrative Procedure Act. The guidelines and any regulations
governing the CalHome Program shall include, among other things, loan
terms and limits, underwriting standards, home price limits,
application procedures and selection criteria, loan and grant
documentation requirements, and monitoring requirements.



State Codes and Statutes

State Codes and Statutes

Statutes > California > Hsc > 50650-50650.7

HEALTH AND SAFETY CODE
SECTION 50650-50650.7



50650.  The Legislature finds and declares as follows:
   (a) An adequate supply of safe and affordable housing is the
foundation for strong and sustainable communities. Owner occupied
housing is a key housing resource, contributing to neighborhood
stability as well as economic vitality.
   (b) In California, homeownership is beyond the reach of a large
segment of the population. There are also many homeowners who lack
the resources to make necessary repairs to their homes, or who would
welcome the opportunity to share them with suitable tenants.
   (c) Reflecting California's diversity, there is a variety of
proven approaches to the promotion of homeownership within the state.
The purpose of the CalHome Program established by this chapter is to
support existing homeownership programs aimed at lower and very low
income households and operated by private nonprofit and local
government agencies, and thereby to increase homeownership, encourage
neighborhood revitalization and sustainable development, and
maximize use of existing homes.
   (d) The CalHome Program is intended to take the place of the
Senior Citizens' Shared Housing Program established by Chapter 3.6
(commencing with Section 50533), which is repealed by the act
enacting this chapter.


50650.1.  This chapter shall be known and may be cited as the
CalHome Program.


50650.2.  The department shall administer this chapter.



50650.3.  (a) Funds appropriated for purposes of this chapter shall
be used to enable low- and very low income households to become or
remain homeowners. Funds shall be provided by the department to local
public agencies or nonprofit corporations as either of the
following:
   (1) Grants for programs that assist individual households.
   (2) Loans that assist development projects involving multiple home
ownership units, including single-family subdivisions.
   (b) (1) Grant funds may be used for first-time homebuyer
downpayment assistance, home rehabilitation, including the
installation or retrofit of ignition resistant exterior components on
existing manufactured homes, mobilehomes, and accessory structures
required pursuant to Article 2.3 (commencing with Section 4200) of
Subchapter 2 of Chapter 3 of Division 1 of Title 25 of the California
Code of Regulations, homebuyer counseling, home acquisition and
rehabilitation, or self-help mortgage assistance programs, or for
technical assistance for self-help and shared housing home ownership.
   (2) Home rehabilitation funding for the purpose of installing
ignition resistant components on manufactured homes, mobilehomes, or
accessory structures pursuant to this subdivision shall not be
conditioned upon the rehabilitation of additional or unrelated home
components unless that rehabilitation is required pursuant to Article
2.3 (commencing with Section 4200) of Subchapter 2 of Chapter 3 of
Division 1 of Title 25 of the California Code of Regulations. In
administering funding for this purpose, local public agencies and
nonprofit corporations may consider the condition and age of the
manufactured home or mobilehome, including whether the home was
constructed on or after June 15, 1976, in accordance with federal
standards and whether the available funds could be more effectively
used to replace the manufactured home or mobilehome.
   (c) Except as provided in subdivision (e), loan funds may be used
for purchase of real property, site development, predevelopment, and
construction period expenses incurred on home ownership development
projects, and permanent financing for mutual housing or cooperative
developments. Upon completion of construction, the department may
convert project loans into grants for programs of assistance to
individual homeowners. Financial assistance provided to individual
households shall be in the form of deferred payment loans, repayable
upon sale or transfer of the homes, when they cease to be
owner-occupied, or upon the loan maturity date. Financial assistance
may be provided in the form of a secured forgivable loan to an
individual household to rehabilitate, repair, or replace manufactured
housing located in a mobilehome park and not permanently affixed to
a foundation. The loan shall be due and payable in 20 years, with 10
percent of the original principal to be forgiven annually for each
additional year beyond the 10th year that the home is owned and
continuously occupied by the borrower. Not more than 10 percent of
the funds available for the purposes of this chapter in a fiscal year
shall be used for financial assistance in the form of secured
forgivable loans.
   (d) All loan repayments shall be used for activities allowed under
this section, and shall be governed by a reuse plan approved by the
department. Those reuse plans may provide for loan servicing by the
grant recipient or a third-party local government agency or nonprofit
corporation.
   (e) Notwithstanding subdivision (c), loans provided pursuant to
the CalHome Program Disaster Assistance for Imperial County that have
been made for the purpose of rehabilitation, reconstruction, or
replacement of lower income owner-occupied manufactured homes shall
be due and payable in 10 years, with 20 percent of the original
principal to be forgiven annually for each additional year beyond the
fifth year that the manufactured home is owned and continuously
occupied by the borrower.



50650.4.  (a) To be eligible to receive a grant or loan, local
public agencies or nonprofit corporations shall demonstrate
sufficient organizational stability and capacity to carry out the
activity for which they are requesting funds, including, where
applicable, the capacity to manage a portfolio of individual loans
over an extended time period. Capacity may be demonstrated by
substantial successful experience performing similar activities, or
through other means acceptable to the department. In administering
the CalHome program, the department may permit local agencies and
nonprofit corporations to apply their own underwriting guidelines
when evaluating CalHome rehabilitation loan applications, following
prior review and approval of those guidelines by the department. The
local agency or nonprofit corporation shall not subsequently alter
its underwriting guidelines with respect to the use of CalHome funds
without review and approval by the department. In allocating funds,
the department shall utilize a competitive application process, using
weighted evaluation criteria, including, but not limited to, the
extent that the program or project utilizes volunteer or self-help
labor, trains youth and young adults in construction skills, creates
balanced communities, involves community participation, or whether
the program or project contributes toward community revitalization.
To the extent feasible, the application process shall ensure a
reasonable geographic distribution of funds.
   (b) In administering department funds received pursuant to
subdivision (a), local public agencies and nonprofit corporations
shall not deny the funding application of, or apply different
underwriting guidelines to, a housing program or project solely on
the basis of either of the following:
   (1) The home is a manufactured home or mobilehome, as defined in
Sections 18007 and 18008.
   (2) The home is located in a mobilehome park or in a manufactured
housing community, as defined in Sections 18210.7 and 18214.




50650.5.  For the purposes of this chapter, all of the following
shall apply:
   (a) Mutual housing, community land trusts, and limited equity
cooperative housing shall be deemed to be forms of homeownership and
developments of those types of housing, as defined in subdivision
(b), shall be eligible to receive assistance under the CalHome
Program. The department may require that mutual housing, community
land trust, or limited equity cooperative applicants not
simultaneously apply for and receive funding through the department's
rental housing programs for the same projects for which CalHome
assistance is sought. For mutual housing, community land trust
projects that do not convey an interest in real estate to the
homebuyer, and limited equity cooperative projects, all of the
following shall apply:
   (1) Program funds shall be used for permanent financing only.
   (2) The department shall enter into a regulatory agreement
limiting occupant incomes, occupancy charges, and share purchase
terms for 55 years.
   (3) Notwithstanding Section 50650.3, program assistance shall be
provided in the form of a deferred payment loan.
   (b) As used in this section, "mutual housing development" means a
housing development owned and sponsored by a nonprofit corporation or
a limited partnership in which the nonprofit corporation is the sole
general partner, and all of the following requirements are met:
   (1) The nonprofit corporation is exempt from taxes under Section
501(c)(3) of the Internal Revenue Code or subdivision (d) of Section
23701 of the Revenue and Taxation Code.
   (2) The nonprofit corporation has as one of its principal purposes
the advancement of mutual housing.
   (3) A majority of the board of directors of the nonprofit
corporation sponsor are residents or former residents of developments
sponsored by the nonprofit corporation.
   (4) The nonprofit corporation agrees to assist the residents of
the development in setting up a resident council, and the operating
budget for the development provides for ongoing financial support to
allow the resident council to carry out its activities.
   (c) Lower income participants in a qualified mutual housing
development that is assisted pursuant to this chapter shall not be
required to have a vested ownership interest in the property.
   (d) (1) Funds provided under this chapter may be used to finance
either of the following:
   (A) The purchase of land beneath a manufactured home or mobilehome
by the owner of the home.
   (B) The purchase of both the land beneath a manufactured home or
mobilehome and the home.
   (2) (A) A loan to purchase a subdivided lot in a manufactured
housing community or mobilehome park, or both a subdivided lot and
the manufactured home or mobilehome that is located on the lot, may
be secured either by the land alone or by both the land and the
manufactured home or mobilehome.
   (B) A loan to purchase an interest in an entity that owns a
manufactured housing community or mobilehome park may be secured by
an interest in the entity, a manufactured home, or a mobilehome, or
both an interest in the entity and the home.
   (3) A manufactured home or mobilehome shall not be required to be
placed on a permanent foundation as a condition of receiving
financing under this chapter.
   (4) Funds provided under this chapter shall not be used for a loan
to purchase the first lot or space in a manufactured housing
community or mobilehome park at the time of the initial conversion of
the park to resident ownership unless the conversion meets the
two-thirds signature requirement in subdivision (a) of Section
66428.1 of the Government Code, or the transfer of the park to
resident ownership has qualified for the change of ownership
exclusion under Section 62.1 of the Revenue and Taxation Code.
   (5) For purposes of this subdivision, "land beneath a manufactured
home or mobilehome" means either a subdivided lot in a manufactured
housing community or mobilehome park or a membership, share,
certificate, or other interest in the entity that owns the
manufactured housing community or mobilehome park, including, but not
limited to, a limited equity cooperative, community land trust, or
mutual housing association.
   (e) Subdivision (a) shall not apply to the financing of an
interest in a manufactured housing community or mobilehome park that
is organized as mutual housing or a limited equity cooperative.



50650.6.  The department may use up to 5 percent of the funds
appropriated for the purposes of this chapter for its costs in
administering the program.


50650.7.  For appropriations of fifteen million dollars
($15,000,000) or less, the department may administer the funds using
guidelines that shall not be subject to the Administrative Procedure
Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Title 2
of the Government Code). If an appropriation exceeds that amount,
the department may administer the funds using guidelines for 24
months, during which time those guidelines shall not be subject to
the Administrative Procedure Act. The guidelines and any regulations
governing the CalHome Program shall include, among other things, loan
terms and limits, underwriting standards, home price limits,
application procedures and selection criteria, loan and grant
documentation requirements, and monitoring requirements.