50775. (a) The department may provide financial assistance, in
accordance with this chapter, to households residing in rental
housing, or a mobilehome park in which those households rent spaces,
which is to be converted to condominium ownership, planned
development ownership, as defined in Section 11003 of the Business
and Professions Code, or ownership by a stock cooperative
corporation, as defined in Section 11003.2 of the Business and
Professions Code, for the purpose of assisting those households in
acquiring a dwelling unit or a share in the stock cooperative
corporation which entitles those households to occupancy of a
dwelling unit.
(b) The department may also provide financial assistance for the
purpose of assisting households to purchase a mobilehome, as defined
in Section 18008, which is located outside a mobilehome park, as
defined in Section 18214, and which is affixed to a permanent
foundation system.
(c) The financial assistance provided pursuant to subdivision (a)
or (b) shall not exceed 49 percent of the purchase price paid by the
household for the dwelling unit, mobilehome, or share in the stock
cooperative, and in no event shall that assistance be used to reduce
the purchaser's downpayment below 3 percent of the total purchase
price.
(d) The department may establish maximum purchase prices for such
units, mobilehomes, or shares.
(e) Eligibility for that financial assistance shall be limited to
households which meet all of the following conditions:
(1) Their incomes are no greater than the median for the county.
(2) The households do not currently own residential property and
have not owned any residential property, other than a mobilehome not
affixed to a permanent foundation, for at least three years.
(3) The households have not previously received any assistance
pursuant to this chapter.
(4) The households, without financial assistance pursuant to this
section, would be unable to acquire a dwelling unit, mobilehome, or a
share in a stock cooperative.
(f) As used in this chapter, "dwelling unit" means the dwelling
unit that the household occupies, or another dwelling unit not being
purchased by its existing tenant within the same rental housing
development or mobilehome park. "Dwelling unit" includes a space in a
mobilehome park, as defined in Section 18214, and includes a
mobilehome rented with the space. "Dwelling unit" also includes
factory-built housing, as defined by Section 19971, whether the
household occupied that factory-built housing or other factory-built
housing in the same rental housing development or mobilehome park.
50775.5. For the purposes of disaster relief to those households
displaced as a result of the Anaheim fire resulting in a state of
emergency proclaimed on April 23, 1982, by the Governor, pursuant to
Section 8625 of the Government Code, financial assistance may be
provided to displaced Anaheim residents as prescribed in this
chapter, consistent with the following exceptions:
(a) Condominium, planned development, as defined in Section 11003
of the Business and Professions Code, or stock cooperative units to
be purchased with state financial assistance may include existing
condominium, planned development, or cooperative units.
(b) Households receiving state assistance to purchase condominium,
planned development, or cooperative units need not have resided in
such units prior to the purchase thereof.
(c) Eligibility for state financial assistance shall be limited to
households which have incomes no greater than 150 percent of the
median for the county.
(d) The housing assisted by this section shall not be governed by
the percentage requirements in Section 50778, nor shall units
assisted pursuant to this section be used in determining compliance
with the percentage requirements contained in Section 50778.
(e) Any rule, policy, or standard of general application employed
by the department in implementing the provisions of this section
shall not be subject to the requirements of the Administrative
Procedure Act, Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code.
Any repayment of funds originating from the Homeownership
Assistance Fund allocated pursuant to this section shall be utilized
by the department pursuant to this chapter.
The provisions of Sections 14 and 15 of Chapter 312 of the
Statutes of 1982 shall be applicable to this section as amended by
the Statutes of 1983.
50776. (a) Financial assistance pursuant to Section 50775 may be
provided directly by the department or through a governmental agency
or mortgage lender certified by the department to participate in the
program authorized by Section 50775. The mortgage lender may be a
bank or trust company, mortgage banker, federal-chartered or
state-chartered savings and loan association, or other financial
institution, including a credit union, deemed capable by the
department, pursuant to regulations adopted in accordance with the
provisions of Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code, of providing
services or mortgage loans in conjunction with dwelling units,
mobilehomes, or shares in stock cooperatives for which the financial
assistance is provided.
(b) The department, governmental agency, or mortgage lender shall
enter into a contract with each recipient of financial assistance
under Section 50775, requiring the recipient, upon sale or transfer
of the dwelling unit, mobilehome, or share for which the assistance
was provided, to pay to the department an amount proportionate to the
percentage of the initial purchase price which was paid with
financial assistance provided under Section 50775. The contract may
provide that the department shall not receive less than the amount of
assistance provided under Section 50775. However, if the recipient
has made improvements to the dwelling unit or mobilehome, as the case
may be, the increase in the fair market value of the unit or
mobilehome arising from the improvement shall be added to the fair
market value of the recipient's share in that unit or mobilehome
immediately before these improvements are made, to determine the
recipient's relative financial participation for the purpose of
calculating the amount to be paid to the department. Improvements
which may be added to the purchase price for this purpose shall be
defined by regulations of the department, adopted in accordance with
Chapter 3.5 (commencing with Section 11430) of Part 1 of Division 3
of Title 2 of the Government Code, and shall be limited to
substantial repairs, renovations, or additions undertaken with
respect to the dwelling unit or mobilehome assisted, which increase
the value of the dwelling unit or mobilehome, or which bring that
dwelling unit or mobilehome into conformance with local or state
building or housing standards.
(c) Any contract pursuant to this section may permit the recipient
of financial assistance to terminate the contract upon payment to
the department of the amount which would be owed the department if
the dwelling unit, mobilehome or share were sold at fair market value
at the time of the repayment. These contracts, subject to
regulations adopted by the department, may also permit partial
repayments prior to sale or transfer.
(d) Contracts pursuant to this section shall require payment of
the full amount of property taxes, insurance, and costs of normal
maintenance by the household receiving assistance pursuant to Section
50775, and compliance with restrictions on occupancy, including
owner-occupancy, as required by the department. Every contract
required by this section shall be secured by a deed of trust,
security, or other interest determined adequate by the department to
protect the interests of the state. These deeds of trust, security,
or other instruments shall be recorded in the office of the county
recorder of the county in which the dwelling unit is located.
(e) The contract shall require the recipient of financial
assistance to comply with all terms and conditions of, and to make
all payments required by, any instrument secured by the dwelling
unit.
(f) (1) The department may set aside or use funds that are made
available pursuant to this chapter for the purposes of curing or
averting a default on the terms of any loan or other obligation by
the recipient of financial assistance, or bidding at any foreclosure
sale, where the default or foreclosure sale would jeopardize the
department's security in the dwelling unit assisted pursuant to this
chapter.
(2) The department may set aside or use funds made available
pursuant to this chapter to repair or maintain any dwelling unit
assisted pursuant to this chapter which was acquired to protect the
department's security interest in the dwelling unit.
(3) The payment or advance of funds by the department pursuant to
this subdivision shall be exclusively within the department's
discretion, and no person shall be deemed to have any entitlement to
the payment or advance of those funds. The amount of any funds
expended by the department for purposes of curing or averting a
default shall be added to any loan amount secured by the deed of
trust and shall be payable to the department upon demand.
50777. (a) The department, directly or through a government agency
or mortgage lender, and subject to the provisions of subdivision (a)
of Section 50776, may provide financial assistance to nonprofit
corporations and stock cooperative corporations to enable these
corporations to develop or purchase a mobilehome park, ownership of
which will be transferred within a reasonable time to shareholders or
owners who are persons and families of low or moderate income. Such
financial assistance shall not exceed 49 percent of the purchase
price or development costs of the mobilehome park which may be
directly attributed to the number or ratio of persons or families
with incomes, not in excess of the median income of the county, who
will occupy the park. Assistance pursuant to this subdivision shall
not render a person or household ineligible for assistance pursuant
to subdivision (b).
(b) The department, directly or through a governmental agency or
mortgage lender, and subject to the provisions of subdivision (a) of
Section 50776, may provide financial assistance to persons or
families with incomes not in excess of the median income for the
county in which the mobilehome park is located to enable such persons
or families to purchase a share in a stock cooperative corporation
which owns a mobilehome park. In order to be eligible for assistance
pursuant to this section, these persons and families in addition
shall be limited to households (1) which do not currently own
residential property and have not owned any residential property,
other than a mobilehome not affixed to a permanent foundation, for at
least three years, (2) which have not previously received any
assistance pursuant to this chapter and (3) which, without financial
assistance pursuant to this section, would be unable to acquire a
dwelling unit, mobilehome, or a share in a stock cooperative. Such
assistance shall not exceed 49 percent of the purchase price paid by
the household for the share in the stock cooperative. The department
may establish a maximum purchase price for such shares. Upon sale or
transfer of a share the purchase of which is assisted pursuant to
this section, the shareholder shall pay to the department an amount
proportionate to the percentage of the initial purchase price which
was paid with financial assistance provided by the department
pursuant to this section, as adjusted for improvements made by the
corporation or shareholder. The contract for assistance may require
that the department not receive in repayment less than the amount of
assistance originally provided. The adjustment for improvements shall
be made as set forth in Section 50776.
(c) In no event shall the assistance provided pursuant to
subdivision (a) or (b) be used to reduce the purchaser's downpayment
below 3 percent of the total purchase price.
(d) Upon sale or transfer of a mobilehome park assisted pursuant
to this section, the corporation which owns such park shall pay to
the department an amount proportionate to the percentage of the
initial purchase price or development cost which was paid by the
department pursuant to this section, as adjusted for improvements
made by the corporation. The contract for assistance may require that
the department not receive in repayment less than the amount of
assistance originally provided. The adjustment for improvements shall
be made as set forth in Section 50776. For this purpose
"improvements" shall be defined by regulations of the department,
adopted in accordance with the provisions of Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code, and shall be limited to substantial repairs,
renovations or additions which increase the value of the mobilehome
park or of the shares of the corporation or which bring such
mobilehome parks or mobilehomes within mobilehome parks assisted
pursuant to this section into conformance with local or state
building or housing standards.
(e) Financial assistance shall be provided pursuant to a contract
which requires, among other things, restrictions on occupancy,
including owner occupancy maintenance and payment of the full amount
of taxes and insurance by the shareholders. Every contract required
by this section shall be secured by a deed of trust, security, or
other interest determined adequate by the department to protect the
interests of the state. The deeds of trust, security, or other
instruments shall be recorded in the office of the county recorder of
the county in which such mobilehome park is located.
(f) Any contract pursuant to this section may permit the recipient
of financial assistance to terminate the contract required by this
section upon payment to the department of the amount which would be
owed to the department if the mobilehome park or share in a stock
cooperative, as the case may be, were sold at fair market value at
the time of such repayment. These contracts, subject to regulations
adopted by the department, may also permit partial repayments prior
to sale or transfer.
(g) Contracts pursuant to this section shall also require that the
recipient comply with all terms and conditions of, and make all
payments required by, any instrument secured by the park or shares in
the stock cooperative.
50778. (a) The Homeownership Assistance Fund is hereby created in
the State Treasury and, notwithstanding Section 13340 of the
Government Code, is continually appropriated to the department for
purposes of this chapter, including Section 50775.5, and for the
purposes of Section 50745.1. Any moneys received by the department
pursuant to this chapter shall be deposited in such fund. All
interest or other increment resulting from investment or deposit of
moneys in the fund shall be deposited in the fund, notwithstanding
Section 16305.7 of the Government Code. Moneys in the fund shall not
be subject to transfer to any other fund pursuant to any provisions
of Part 2 (commencing with Section 16300) of Division 4 of Title 2 of
the Government Code, excepting the Surplus Money Investment Fund.
(b) Not less than 50 percent of the moneys in the fund shall be
used to assist lower income households. Not less than 20 percent of
the units assisted shall be in rural areas.
(c) Funds available for the purpose of this chapter shall be
allocated by the department throughout the state in accordance with
identified housing needs.
(d) (1) Notwithstanding any other provision of law, commencing on
July 1, 1992, the department shall not be required to make loans
pursuant to this chapter.
(2) The department may retain within the fund moneys necessary for
administration and monitoring of loans made prior to July 1, 1992,
to make loans pursuant to loan commitments made prior to July 1,
1992. The department may also retain reserves for curing or averting
a default that would jeopardize any security interest of the
department.
(3) Notwithstanding any other provision of law, on or after July
1, 1996, the unencumbered fund balance and reserves shall be
transferred to the Housing Rehabilitation Loan Fund. Subsequent
income and resources shall be deposited to the Housing Rehabilitation
Loan Fund.
50775. (a) The department may provide financial assistance, in
accordance with this chapter, to households residing in rental
housing, or a mobilehome park in which those households rent spaces,
which is to be converted to condominium ownership, planned
development ownership, as defined in Section 11003 of the Business
and Professions Code, or ownership by a stock cooperative
corporation, as defined in Section 11003.2 of the Business and
Professions Code, for the purpose of assisting those households in
acquiring a dwelling unit or a share in the stock cooperative
corporation which entitles those households to occupancy of a
dwelling unit.
(b) The department may also provide financial assistance for the
purpose of assisting households to purchase a mobilehome, as defined
in Section 18008, which is located outside a mobilehome park, as
defined in Section 18214, and which is affixed to a permanent
foundation system.
(c) The financial assistance provided pursuant to subdivision (a)
or (b) shall not exceed 49 percent of the purchase price paid by the
household for the dwelling unit, mobilehome, or share in the stock
cooperative, and in no event shall that assistance be used to reduce
the purchaser's downpayment below 3 percent of the total purchase
price.
(d) The department may establish maximum purchase prices for such
units, mobilehomes, or shares.
(e) Eligibility for that financial assistance shall be limited to
households which meet all of the following conditions:
(1) Their incomes are no greater than the median for the county.
(2) The households do not currently own residential property and
have not owned any residential property, other than a mobilehome not
affixed to a permanent foundation, for at least three years.
(3) The households have not previously received any assistance
pursuant to this chapter.
(4) The households, without financial assistance pursuant to this
section, would be unable to acquire a dwelling unit, mobilehome, or a
share in a stock cooperative.
(f) As used in this chapter, "dwelling unit" means the dwelling
unit that the household occupies, or another dwelling unit not being
purchased by its existing tenant within the same rental housing
development or mobilehome park. "Dwelling unit" includes a space in a
mobilehome park, as defined in Section 18214, and includes a
mobilehome rented with the space. "Dwelling unit" also includes
factory-built housing, as defined by Section 19971, whether the
household occupied that factory-built housing or other factory-built
housing in the same rental housing development or mobilehome park.
50775.5. For the purposes of disaster relief to those households
displaced as a result of the Anaheim fire resulting in a state of
emergency proclaimed on April 23, 1982, by the Governor, pursuant to
Section 8625 of the Government Code, financial assistance may be
provided to displaced Anaheim residents as prescribed in this
chapter, consistent with the following exceptions:
(a) Condominium, planned development, as defined in Section 11003
of the Business and Professions Code, or stock cooperative units to
be purchased with state financial assistance may include existing
condominium, planned development, or cooperative units.
(b) Households receiving state assistance to purchase condominium,
planned development, or cooperative units need not have resided in
such units prior to the purchase thereof.
(c) Eligibility for state financial assistance shall be limited to
households which have incomes no greater than 150 percent of the
median for the county.
(d) The housing assisted by this section shall not be governed by
the percentage requirements in Section 50778, nor shall units
assisted pursuant to this section be used in determining compliance
with the percentage requirements contained in Section 50778.
(e) Any rule, policy, or standard of general application employed
by the department in implementing the provisions of this section
shall not be subject to the requirements of the Administrative
Procedure Act, Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code.
Any repayment of funds originating from the Homeownership
Assistance Fund allocated pursuant to this section shall be utilized
by the department pursuant to this chapter.
The provisions of Sections 14 and 15 of Chapter 312 of the
Statutes of 1982 shall be applicable to this section as amended by
the Statutes of 1983.
50776. (a) Financial assistance pursuant to Section 50775 may be
provided directly by the department or through a governmental agency
or mortgage lender certified by the department to participate in the
program authorized by Section 50775. The mortgage lender may be a
bank or trust company, mortgage banker, federal-chartered or
state-chartered savings and loan association, or other financial
institution, including a credit union, deemed capable by the
department, pursuant to regulations adopted in accordance with the
provisions of Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code, of providing
services or mortgage loans in conjunction with dwelling units,
mobilehomes, or shares in stock cooperatives for which the financial
assistance is provided.
(b) The department, governmental agency, or mortgage lender shall
enter into a contract with each recipient of financial assistance
under Section 50775, requiring the recipient, upon sale or transfer
of the dwelling unit, mobilehome, or share for which the assistance
was provided, to pay to the department an amount proportionate to the
percentage of the initial purchase price which was paid with
financial assistance provided under Section 50775. The contract may
provide that the department shall not receive less than the amount of
assistance provided under Section 50775. However, if the recipient
has made improvements to the dwelling unit or mobilehome, as the case
may be, the increase in the fair market value of the unit or
mobilehome arising from the improvement shall be added to the fair
market value of the recipient's share in that unit or mobilehome
immediately before these improvements are made, to determine the
recipient's relative financial participation for the purpose of
calculating the amount to be paid to the department. Improvements
which may be added to the purchase price for this purpose shall be
defined by regulations of the department, adopted in accordance with
Chapter 3.5 (commencing with Section 11430) of Part 1 of Division 3
of Title 2 of the Government Code, and shall be limited to
substantial repairs, renovations, or additions undertaken with
respect to the dwelling unit or mobilehome assisted, which increase
the value of the dwelling unit or mobilehome, or which bring that
dwelling unit or mobilehome into conformance with local or state
building or housing standards.
(c) Any contract pursuant to this section may permit the recipient
of financial assistance to terminate the contract upon payment to
the department of the amount which would be owed the department if
the dwelling unit, mobilehome or share were sold at fair market value
at the time of the repayment. These contracts, subject to
regulations adopted by the department, may also permit partial
repayments prior to sale or transfer.
(d) Contracts pursuant to this section shall require payment of
the full amount of property taxes, insurance, and costs of normal
maintenance by the household receiving assistance pursuant to Section
50775, and compliance with restrictions on occupancy, including
owner-occupancy, as required by the department. Every contract
required by this section shall be secured by a deed of trust,
security, or other interest determined adequate by the department to
protect the interests of the state. These deeds of trust, security,
or other instruments shall be recorded in the office of the county
recorder of the county in which the dwelling unit is located.
(e) The contract shall require the recipient of financial
assistance to comply with all terms and conditions of, and to make
all payments required by, any instrument secured by the dwelling
unit.
(f) (1) The department may set aside or use funds that are made
available pursuant to this chapter for the purposes of curing or
averting a default on the terms of any loan or other obligation by
the recipient of financial assistance, or bidding at any foreclosure
sale, where the default or foreclosure sale would jeopardize the
department's security in the dwelling unit assisted pursuant to this
chapter.
(2) The department may set aside or use funds made available
pursuant to this chapter to repair or maintain any dwelling unit
assisted pursuant to this chapter which was acquired to protect the
department's security interest in the dwelling unit.
(3) The payment or advance of funds by the department pursuant to
this subdivision shall be exclusively within the department's
discretion, and no person shall be deemed to have any entitlement to
the payment or advance of those funds. The amount of any funds
expended by the department for purposes of curing or averting a
default shall be added to any loan amount secured by the deed of
trust and shall be payable to the department upon demand.
50777. (a) The department, directly or through a government agency
or mortgage lender, and subject to the provisions of subdivision (a)
of Section 50776, may provide financial assistance to nonprofit
corporations and stock cooperative corporations to enable these
corporations to develop or purchase a mobilehome park, ownership of
which will be transferred within a reasonable time to shareholders or
owners who are persons and families of low or moderate income. Such
financial assistance shall not exceed 49 percent of the purchase
price or development costs of the mobilehome park which may be
directly attributed to the number or ratio of persons or families
with incomes, not in excess of the median income of the county, who
will occupy the park. Assistance pursuant to this subdivision shall
not render a person or household ineligible for assistance pursuant
to subdivision (b).
(b) The department, directly or through a governmental agency or
mortgage lender, and subject to the provisions of subdivision (a) of
Section 50776, may provide financial assistance to persons or
families with incomes not in excess of the median income for the
county in which the mobilehome park is located to enable such persons
or families to purchase a share in a stock cooperative corporation
which owns a mobilehome park. In order to be eligible for assistance
pursuant to this section, these persons and families in addition
shall be limited to households (1) which do not currently own
residential property and have not owned any residential property,
other than a mobilehome not affixed to a permanent foundation, for at
least three years, (2) which have not previously received any
assistance pursuant to this chapter and (3) which, without financial
assistance pursuant to this section, would be unable to acquire a
dwelling unit, mobilehome, or a share in a stock cooperative. Such
assistance shall not exceed 49 percent of the purchase price paid by
the household for the share in the stock cooperative. The department
may establish a maximum purchase price for such shares. Upon sale or
transfer of a share the purchase of which is assisted pursuant to
this section, the shareholder shall pay to the department an amount
proportionate to the percentage of the initial purchase price which
was paid with financial assistance provided by the department
pursuant to this section, as adjusted for improvements made by the
corporation or shareholder. The contract for assistance may require
that the department not receive in repayment less than the amount of
assistance originally provided. The adjustment for improvements shall
be made as set forth in Section 50776.
(c) In no event shall the assistance provided pursuant to
subdivision (a) or (b) be used to reduce the purchaser's downpayment
below 3 percent of the total purchase price.
(d) Upon sale or transfer of a mobilehome park assisted pursuant
to this section, the corporation which owns such park shall pay to
the department an amount proportionate to the percentage of the
initial purchase price or development cost which was paid by the
department pursuant to this section, as adjusted for improvements
made by the corporation. The contract for assistance may require that
the department not receive in repayment less than the amount of
assistance originally provided. The adjustment for improvements shall
be made as set forth in Section 50776. For this purpose
"improvements" shall be defined by regulations of the department,
adopted in accordance with the provisions of Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code, and shall be limited to substantial repairs,
renovations or additions which increase the value of the mobilehome
park or of the shares of the corporation or which bring such
mobilehome parks or mobilehomes within mobilehome parks assisted
pursuant to this section into conformance with local or state
building or housing standards.
(e) Financial assistance shall be provided pursuant to a contract
which requires, among other things, restrictions on occupancy,
including owner occupancy maintenance and payment of the full amount
of taxes and insurance by the shareholders. Every contract required
by this section shall be secured by a deed of trust, security, or
other interest determined adequate by the department to protect the
interests of the state. The deeds of trust, security, or other
instruments shall be recorded in the office of the county recorder of
the county in which such mobilehome park is located.
(f) Any contract pursuant to this section may permit the recipient
of financial assistance to terminate the contract required by this
section upon payment to the department of the amount which would be
owed to the department if the mobilehome park or share in a stock
cooperative, as the case may be, were sold at fair market value at
the time of such repayment. These contracts, subject to regulations
adopted by the department, may also permit partial repayments prior
to sale or transfer.
(g) Contracts pursuant to this section shall also require that the
recipient comply with all terms and conditions of, and make all
payments required by, any instrument secured by the park or shares in
the stock cooperative.
50778. (a) The Homeownership Assistance Fund is hereby created in
the State Treasury and, notwithstanding Section 13340 of the
Government Code, is continually appropriated to the department for
purposes of this chapter, including Section 50775.5, and for the
purposes of Section 50745.1. Any moneys received by the department
pursuant to this chapter shall be deposited in such fund. All
interest or other increment resulting from investment or deposit of
moneys in the fund shall be deposited in the fund, notwithstanding
Section 16305.7 of the Government Code. Moneys in the fund shall not
be subject to transfer to any other fund pursuant to any provisions
of Part 2 (commencing with Section 16300) of Division 4 of Title 2 of
the Government Code, excepting the Surplus Money Investment Fund.
(b) Not less than 50 percent of the moneys in the fund shall be
used to assist lower income households. Not less than 20 percent of
the units assisted shall be in rural areas.
(c) Funds available for the purpose of this chapter shall be
allocated by the department throughout the state in accordance with
identified housing needs.
(d) (1) Notwithstanding any other provision of law, commencing on
July 1, 1992, the department shall not be required to make loans
pursuant to this chapter.
(2) The department may retain within the fund moneys necessary for
administration and monitoring of loans made prior to July 1, 1992,
to make loans pursuant to loan commitments made prior to July 1,
1992. The department may also retain reserves for curing or averting
a default that would jeopardize any security interest of the
department.
(3) Notwithstanding any other provision of law, on or after July
1, 1996, the unencumbered fund balance and reserves shall be
transferred to the Housing Rehabilitation Loan Fund. Subsequent
income and resources shall be deposited to the Housing Rehabilitation
Loan Fund.
50775. (a) The department may provide financial assistance, in
accordance with this chapter, to households residing in rental
housing, or a mobilehome park in which those households rent spaces,
which is to be converted to condominium ownership, planned
development ownership, as defined in Section 11003 of the Business
and Professions Code, or ownership by a stock cooperative
corporation, as defined in Section 11003.2 of the Business and
Professions Code, for the purpose of assisting those households in
acquiring a dwelling unit or a share in the stock cooperative
corporation which entitles those households to occupancy of a
dwelling unit.
(b) The department may also provide financial assistance for the
purpose of assisting households to purchase a mobilehome, as defined
in Section 18008, which is located outside a mobilehome park, as
defined in Section 18214, and which is affixed to a permanent
foundation system.
(c) The financial assistance provided pursuant to subdivision (a)
or (b) shall not exceed 49 percent of the purchase price paid by the
household for the dwelling unit, mobilehome, or share in the stock
cooperative, and in no event shall that assistance be used to reduce
the purchaser's downpayment below 3 percent of the total purchase
price.
(d) The department may establish maximum purchase prices for such
units, mobilehomes, or shares.
(e) Eligibility for that financial assistance shall be limited to
households which meet all of the following conditions:
(1) Their incomes are no greater than the median for the county.
(2) The households do not currently own residential property and
have not owned any residential property, other than a mobilehome not
affixed to a permanent foundation, for at least three years.
(3) The households have not previously received any assistance
pursuant to this chapter.
(4) The households, without financial assistance pursuant to this
section, would be unable to acquire a dwelling unit, mobilehome, or a
share in a stock cooperative.
(f) As used in this chapter, "dwelling unit" means the dwelling
unit that the household occupies, or another dwelling unit not being
purchased by its existing tenant within the same rental housing
development or mobilehome park. "Dwelling unit" includes a space in a
mobilehome park, as defined in Section 18214, and includes a
mobilehome rented with the space. "Dwelling unit" also includes
factory-built housing, as defined by Section 19971, whether the
household occupied that factory-built housing or other factory-built
housing in the same rental housing development or mobilehome park.
50775.5. For the purposes of disaster relief to those households
displaced as a result of the Anaheim fire resulting in a state of
emergency proclaimed on April 23, 1982, by the Governor, pursuant to
Section 8625 of the Government Code, financial assistance may be
provided to displaced Anaheim residents as prescribed in this
chapter, consistent with the following exceptions:
(a) Condominium, planned development, as defined in Section 11003
of the Business and Professions Code, or stock cooperative units to
be purchased with state financial assistance may include existing
condominium, planned development, or cooperative units.
(b) Households receiving state assistance to purchase condominium,
planned development, or cooperative units need not have resided in
such units prior to the purchase thereof.
(c) Eligibility for state financial assistance shall be limited to
households which have incomes no greater than 150 percent of the
median for the county.
(d) The housing assisted by this section shall not be governed by
the percentage requirements in Section 50778, nor shall units
assisted pursuant to this section be used in determining compliance
with the percentage requirements contained in Section 50778.
(e) Any rule, policy, or standard of general application employed
by the department in implementing the provisions of this section
shall not be subject to the requirements of the Administrative
Procedure Act, Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code.
Any repayment of funds originating from the Homeownership
Assistance Fund allocated pursuant to this section shall be utilized
by the department pursuant to this chapter.
The provisions of Sections 14 and 15 of Chapter 312 of the
Statutes of 1982 shall be applicable to this section as amended by
the Statutes of 1983.
50776. (a) Financial assistance pursuant to Section 50775 may be
provided directly by the department or through a governmental agency
or mortgage lender certified by the department to participate in the
program authorized by Section 50775. The mortgage lender may be a
bank or trust company, mortgage banker, federal-chartered or
state-chartered savings and loan association, or other financial
institution, including a credit union, deemed capable by the
department, pursuant to regulations adopted in accordance with the
provisions of Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code, of providing
services or mortgage loans in conjunction with dwelling units,
mobilehomes, or shares in stock cooperatives for which the financial
assistance is provided.
(b) The department, governmental agency, or mortgage lender shall
enter into a contract with each recipient of financial assistance
under Section 50775, requiring the recipient, upon sale or transfer
of the dwelling unit, mobilehome, or share for which the assistance
was provided, to pay to the department an amount proportionate to the
percentage of the initial purchase price which was paid with
financial assistance provided under Section 50775. The contract may
provide that the department shall not receive less than the amount of
assistance provided under Section 50775. However, if the recipient
has made improvements to the dwelling unit or mobilehome, as the case
may be, the increase in the fair market value of the unit or
mobilehome arising from the improvement shall be added to the fair
market value of the recipient's share in that unit or mobilehome
immediately before these improvements are made, to determine the
recipient's relative financial participation for the purpose of
calculating the amount to be paid to the department. Improvements
which may be added to the purchase price for this purpose shall be
defined by regulations of the department, adopted in accordance with
Chapter 3.5 (commencing with Section 11430) of Part 1 of Division 3
of Title 2 of the Government Code, and shall be limited to
substantial repairs, renovations, or additions undertaken with
respect to the dwelling unit or mobilehome assisted, which increase
the value of the dwelling unit or mobilehome, or which bring that
dwelling unit or mobilehome into conformance with local or state
building or housing standards.
(c) Any contract pursuant to this section may permit the recipient
of financial assistance to terminate the contract upon payment to
the department of the amount which would be owed the department if
the dwelling unit, mobilehome or share were sold at fair market value
at the time of the repayment. These contracts, subject to
regulations adopted by the department, may also permit partial
repayments prior to sale or transfer.
(d) Contracts pursuant to this section shall require payment of
the full amount of property taxes, insurance, and costs of normal
maintenance by the household receiving assistance pursuant to Section
50775, and compliance with restrictions on occupancy, including
owner-occupancy, as required by the department. Every contract
required by this section shall be secured by a deed of trust,
security, or other interest determined adequate by the department to
protect the interests of the state. These deeds of trust, security,
or other instruments shall be recorded in the office of the county
recorder of the county in which the dwelling unit is located.
(e) The contract shall require the recipient of financial
assistance to comply with all terms and conditions of, and to make
all payments required by, any instrument secured by the dwelling
unit.
(f) (1) The department may set aside or use funds that are made
available pursuant to this chapter for the purposes of curing or
averting a default on the terms of any loan or other obligation by
the recipient of financial assistance, or bidding at any foreclosure
sale, where the default or foreclosure sale would jeopardize the
department's security in the dwelling unit assisted pursuant to this
chapter.
(2) The department may set aside or use funds made available
pursuant to this chapter to repair or maintain any dwelling unit
assisted pursuant to this chapter which was acquired to protect the
department's security interest in the dwelling unit.
(3) The payment or advance of funds by the department pursuant to
this subdivision shall be exclusively within the department's
discretion, and no person shall be deemed to have any entitlement to
the payment or advance of those funds. The amount of any funds
expended by the department for purposes of curing or averting a
default shall be added to any loan amount secured by the deed of
trust and shall be payable to the department upon demand.
50777. (a) The department, directly or through a government agency
or mortgage lender, and subject to the provisions of subdivision (a)
of Section 50776, may provide financial assistance to nonprofit
corporations and stock cooperative corporations to enable these
corporations to develop or purchase a mobilehome park, ownership of
which will be transferred within a reasonable time to shareholders or
owners who are persons and families of low or moderate income. Such
financial assistance shall not exceed 49 percent of the purchase
price or development costs of the mobilehome park which may be
directly attributed to the number or ratio of persons or families
with incomes, not in excess of the median income of the county, who
will occupy the park. Assistance pursuant to this subdivision shall
not render a person or household ineligible for assistance pursuant
to subdivision (b).
(b) The department, directly or through a governmental agency or
mortgage lender, and subject to the provisions of subdivision (a) of
Section 50776, may provide financial assistance to persons or
families with incomes not in excess of the median income for the
county in which the mobilehome park is located to enable such persons
or families to purchase a share in a stock cooperative corporation
which owns a mobilehome park. In order to be eligible for assistance
pursuant to this section, these persons and families in addition
shall be limited to households (1) which do not currently own
residential property and have not owned any residential property,
other than a mobilehome not affixed to a permanent foundation, for at
least three years, (2) which have not previously received any
assistance pursuant to this chapter and (3) which, without financial
assistance pursuant to this section, would be unable to acquire a
dwelling unit, mobilehome, or a share in a stock cooperative. Such
assistance shall not exceed 49 percent of the purchase price paid by
the household for the share in the stock cooperative. The department
may establish a maximum purchase price for such shares. Upon sale or
transfer of a share the purchase of which is assisted pursuant to
this section, the shareholder shall pay to the department an amount
proportionate to the percentage of the initial purchase price which
was paid with financial assistance provided by the department
pursuant to this section, as adjusted for improvements made by the
corporation or shareholder. The contract for assistance may require
that the department not receive in repayment less than the amount of
assistance originally provided. The adjustment for improvements shall
be made as set forth in Section 50776.
(c) In no event shall the assistance provided pursuant to
subdivision (a) or (b) be used to reduce the purchaser's downpayment
below 3 percent of the total purchase price.
(d) Upon sale or transfer of a mobilehome park assisted pursuant
to this section, the corporation which owns such park shall pay to
the department an amount proportionate to the percentage of the
initial purchase price or development cost which was paid by the
department pursuant to this section, as adjusted for improvements
made by the corporation. The contract for assistance may require that
the department not receive in repayment less than the amount of
assistance originally provided. The adjustment for improvements shall
be made as set forth in Section 50776. For this purpose
"improvements" shall be defined by regulations of the department,
adopted in accordance with the provisions of Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code, and shall be limited to substantial repairs,
renovations or additions which increase the value of the mobilehome
park or of the shares of the corporation or which bring such
mobilehome parks or mobilehomes within mobilehome parks assisted
pursuant to this section into conformance with local or state
building or housing standards.
(e) Financial assistance shall be provided pursuant to a contract
which requires, among other things, restrictions on occupancy,
including owner occupancy maintenance and payment of the full amount
of taxes and insurance by the shareholders. Every contract required
by this section shall be secured by a deed of trust, security, or
other interest determined adequate by the department to protect the
interests of the state. The deeds of trust, security, or other
instruments shall be recorded in the office of the county recorder of
the county in which such mobilehome park is located.
(f) Any contract pursuant to this section may permit the recipient
of financial assistance to terminate the contract required by this
section upon payment to the department of the amount which would be
owed to the department if the mobilehome park or share in a stock
cooperative, as the case may be, were sold at fair market value at
the time of such repayment. These contracts, subject to regulations
adopted by the department, may also permit partial repayments prior
to sale or transfer.
(g) Contracts pursuant to this section shall also require that the
recipient comply with all terms and conditions of, and make all
payments required by, any instrument secured by the park or shares in
the stock cooperative.
50778. (a) The Homeownership Assistance Fund is hereby created in
the State Treasury and, notwithstanding Section 13340 of the
Government Code, is continually appropriated to the department for
purposes of this chapter, including Section 50775.5, and for the
purposes of Section 50745.1. Any moneys received by the department
pursuant to this chapter shall be deposited in such fund. All
interest or other increment resulting from investment or deposit of
moneys in the fund shall be deposited in the fund, notwithstanding
Section 16305.7 of the Government Code. Moneys in the fund shall not
be subject to transfer to any other fund pursuant to any provisions
of Part 2 (commencing with Section 16300) of Division 4 of Title 2 of
the Government Code, excepting the Surplus Money Investment Fund.
(b) Not less than 50 percent of the moneys in the fund shall be
used to assist lower income households. Not less than 20 percent of
the units assisted shall be in rural areas.
(c) Funds available for the purpose of this chapter shall be
allocated by the department throughout the state in accordance with
identified housing needs.
(d) (1) Notwithstanding any other provision of law, commencing on
July 1, 1992, the department shall not be required to make loans
pursuant to this chapter.
(2) The department may retain within the fund moneys necessary for
administration and monitoring of loans made prior to July 1, 1992,
to make loans pursuant to loan commitments made prior to July 1,
1992. The department may also retain reserves for curing or averting
a default that would jeopardize any security interest of the
department.
(3) Notwithstanding any other provision of law, on or after July
1, 1996, the unencumbered fund balance and reserves shall be
transferred to the Housing Rehabilitation Loan Fund. Subsequent
income and resources shall be deposited to the Housing Rehabilitation
Loan Fund.
