SECTIONS 51400-51403

51400.  The Legislature finds and declares that it is essential tothe economic growth of the state and the supply of adequateresidential and multifamily rental housing in the state and that itis a public purpose to expand the program of the agency of purchasingand selling residential mortgage loans for which all Californiafamilies may be eligible and financing, purchasing, and selling loansfor multifamily rental housing. The Legislature also finds anddeclares that it is a public purpose to create procedures throughwhich the agency may issue mortgage-backed securities to financethese purchases for sale to pension funds, institutional investors,and individuals.51401.  Notwithstanding any other provision of this division, asused in this chapter: (a) "Mortgage loan" means any residential mortgage loan ormultifamily rental housing loan. (b) "Multifamily rental housing" means any existing structure ofmore than four dwelling units or any work or undertaking of more thanfour units of new construction, improvement, or rehabilitation forthe provision of housing. (c) "Multifamily rental housing loan" means a mortgage loansecured by a mortgage on multifamily rental housing. (d) "Residence" means any existing structure of one to fourdwelling units or any work or undertaking of one to four dwellingunits of new construction, improvement, or rehabilitation for theprovision of housing. (e) "Residential mortgage loan" means a mortgage loan secured by amortgage on a residence. (f) "Taxable securities" means securities bearing interest that isotherwise taxable under the personal income tax provisions offederal tax law and which are issued to finance the purchase ormaking of mortgage loans pursuant to this chapter.51402.  (a) Notwithstanding any other provision of this division,the agency may establish a mortgage loan program. Under the mortgageloan program, the agency may acquire or make first or second mortgageloans for the construction, purchase, improvement, or rehabilitationof residences or multifamily rental housing. (b) The agency may invest in, make, purchase, take assignments of,or otherwise acquire or make commitments to invest in, make,purchase, take assignments, or otherwise acquire any mortgage loan orpartial interest or participation therein. The agency may sell,assign, or otherwise dispose of, or enter into commitments to sell,assign, or otherwise dispose of, any obligation, mortgage loan, orpartial interest or participation therein, or create pools ofobligations, mortgage loans, or partial interest or participationsheld by the agency, and issue and sell securities backed by pools.The agency may require the seller of obligations, residentialmortgage loans, or partial interest or participations purchased bythe agency, to use the proceeds of the sale for the purpose offinancing mortgage loans, except when the proceeds arise from thesale of new loans, initiated for the purpose of sale to the agency orothers. The agency may pledge mortgage loans, acquired pursuant tothe mortgage loan program, to pay the principal, interest, andredemption premium, if any, on taxable securities issued by theagency for the mortgage loan program. (c) Any multifamily rental housing financed by the agency pursuantto this chapter shall be subject to the same occupancy standardsspecified in Section 51335.51403.  (a) The agency may, from time to time, issue its taxablesecurities in whatever principal amount the agency determines isnecessary to provide sufficient funds for the acquisition or makingof mortgage loans and for the payment of interest on the securities,establishment of reserves to secure the securities, and otherexpenditures of the agency incident to, and necessary or convenientto, issuance of the securities, and the purchase or sale of mortgageloans in accordance with this chapter. (b) Notwithstanding any other provision of this division, taxablesecurities issued pursuant to this chapter shall not be subject toany limitation of aggregate principal amount outstanding at any time.The securities shall not be taken into account for purposes of thelimitation on indebtedness of the agency contained in Section 51350,or any other limitation on the amount of securities of the agencywhich at any time may be issued or which may be outstanding. (c) Any taxable securities issued pursuant to this chapter shallnot be a general obligation of the agency and shall be payable solelyfrom the receipts, revenues, or other income derived in respect ofmortgage loans or securities purchased or sold pursuant to thischapter. Any official statement or other prospectus used by theagency in offering taxable securities for sale shall clearly indicatethat the securities are not the debt or obligation of the state orof the agency except to the extent provided in this section. (d) All proceeds received by the agency pursuant to this chaptershall be deposited in the Taxable Securities Account which is herebycreated in the California Housing Finance Fund. Any moneysappropriated to the agency for the purposes of this chapter shall bedeposited in the Taxable Securities Account and shall be repaid fromrevenues received by the agency pursuant to this chapter.