51500. This chapter shall be known and may be cited as the
California Homebuyer's Downpayment Assistance Program.
51501. The Legislature finds and declares all of the following:
(a) There is a continuing and urgent need to provide affordable
mortgage financing to meet the increasingly unfulfilled housing needs
of citizens of this state.
(b) The high cost of housing impedes the ability of California
employers to compete in the national marketplace for employees.
(c) Affordable housing enhances the quality of life for California
residents and provides fuel for the state's economic engine.
(d) Housing is a critical component of the California economy,
both as an income producing sector and a principal factor in economic
development.
(e) California's housing crisis severely impacts families
struggling to provide safe, stable homes for their children to grow
and learn and the workers who are the backbone of many of the state's
most important industries.
(f) The percentage of Californians able to purchase their own
homes continues to decline, even as that percentage climbs for the
rest of the nation.
(g) Therefore, this chapter is enacted to make existing financing
for residential mortgages more affordable to California's homebuyers.
51502. The purpose of the California Homebuyer's Downpayment
Assistance Program is to assist first-time low- and moderate-income
homebuyers utilizing existing mortgage financing.
51504. (a) The agency shall administer a downpayment assistance
program that includes, but is not limited to, all of the following:
(1) Downpayment assistance shall include, but not be limited to, a
deferred-payment, low-interest, junior mortgage loan to reduce the
principal and interest payments and make financing affordable to
first-time low- and moderate-income home buyers.
(2) (A) Except as provided in subparagraph (B) or (C), the amount
of downpayment assistance shall not exceed 3 percent of the home sale
price.
(B) The amount of downpayment assistance for a new home within an
infill opportunity zone, as defined in Section 65088.1 of the
Government Code, a transit village development district, as defined
in Section 65460.4 of the Government Code, or a transit-oriented
development specific plan area, as defined in paragraph (6), shall
not exceed 5 percent of the purchase price or the appraised value,
whichever amount is less, of the new home. The borrower of the
downpayment assistance shall provide the lender originating the loan
with a certification from the local government agency administering
the infill opportunity zone, the transit village development
district, or the transit-oriented development specific plan area that
states that the property involved in the loan transaction is within
the boundaries of either the infill opportunity zone, the transit
village development district, or the transit-oriented development
specific plan area.
(C) Notwithstanding paragraph (1), the agency may, but is not
required to, provide downpayment assistance that does not exceed 6
percent of the home sale price to first-time low-income home buyers
who, as documented to the agency by a nonprofit organization that is
certified and funded to provide home ownership counseling by a
federally funded national nonprofit corporation, are purchasing a
residence in a community revitalization area targeted by the
nonprofit organization as a neighborhood in need of economic
stimulation, renovation, and rehabilitation through efforts that
include increased home ownership opportunities for low-income
families. The agency shall not use more than six million dollars
($6,000,000) in funds made available pursuant to Section 53533 for
the purposes of this paragraph.
(3) The amount of the downpayment assistance shall be secured by a
deed of trust in a junior position to the primary financing
provided. The term of the loan for the downpayment assistance shall
not exceed the term of the primary loan.
(4) (A) Except as provided in subparagraph (B), the amount of the
downpayment assistance shall be due and payable at the end of the
term or upon sale of or refinancing of the home. The borrower may
refinance the mortgages on the home provided that the principal and
accrued interest on the junior mortgage loan securing the downpayment
assistance are repaid in full. All repayments shall be made to the
agency to be reallocated for the purposes of this chapter.
(B) The agency may, in its discretion, permit the downpayment
assistance loan to be subordinated to refinancing if it determines
that the borrower has demonstrated hardship, subordination is
required to avoid foreclosure, and the new loan meets the agency's
underwriting requirements. The agency may permit subordination on
those terms and conditions as it determines are reasonable.
(5) The agency may use up to 5 percent of the funds appropriated
by the Legislature for purposes of this chapter to administer this
program.
(6) For purposes of this section, "transit-oriented development
specific plan area" means a specific plan that meets the criteria set
forth in Section 65451 of the Government Code, is centered around a
rail or light-rail station, ferry terminal, bus hub, or bus transfer
station, and is intended to achieve a higher density use of land that
facilitates use of the transit station.
(b) In addition to the downpayment assistance program authorized
by subdivision (a), the agency may, at its discretion, use not more
than seventy-five million dollars ($75,000,000) of the funds
available pursuant to this chapter to finance the acquisition of land
and the construction and development of for-sale residential
structures, through short-term loans pursuant to its authority
pursuant to Section 51100. However, the agency shall make downpayment
assistance provided pursuant to paragraph (1), subparagraphs (A) and
(B) of paragraph (2), and paragraphs (3) to (5), inclusive, of
subdivision (a) the priority use for these funds. A loan made
pursuant to this section is not subject to Article 4 (commencing with
Section 51175) of Chapter 5.
51505. (a) In addition to the downpayment assistance program
authorized by Section 51504, and notwithstanding any provision of
Section 51504 to the contrary, the agency shall provide downpayment
assistance from the funds set aside pursuant to subparagraph (D) of
paragraph (7) of subdivision (a) of Section 53533 for the purposes of
the portion of the Extra Credit Teacher Home Purchase Program
provided for in subdivision (g) of Section 8869.84 of the Government
Code and any other school personnel home ownership assistance
programs as set forth by the California Debt Limit Allocation
Committee, as operated by the agency. Notwithstanding the foregoing,
the agency may, but is not required to, provide downpayment
assistance pursuant to this section to any local issuer participating
in the Extra Credit Teacher Home Purchase Program and any other
school personnel home ownership assistance programs as set forth by
the California Debt Limit Allocation Committee.
(b) Downpayment assistance for purposes of this section shall be
subject to, and shall meet the requirements of, the Extra Credit
Teacher Home Purchase Program and any other school personnel home
ownership programs as set forth by the California Debt Limit
Allocation Committee, and shall include, but not be limited to,
deferred payment, low interest rate loans where payment of principal
and interest is deferred until the time that the home is sold or
refinanced. This downpayment assistance shall meet the requirements
of subdivisions (d) and (e) of Section 51504.
(c) Loans made pursuant to this section may include a provision
whereby interest, principal, or both, of the loan is forgiven upon
conditions to be established by the agency, or any other provision
designed to carry out the purposes of the Extra Credit Teacher Home
Purchase Program and any other school personnel home ownership
programs as set forth by the California Debt Limit Allocation
Committee.
(d) Downpayment assistance pursuant to this section shall not
exceed the greater of seven thousand five hundred dollars ($7,500) or
3 percent of the home sales price. However, the agency may, with the
concurrence of the California Debt Limit Allocation Committee,
establish higher assistance limits where necessary to ensure
sufficient assistance to allow program participation in high cost
areas.
51506. The downpayment assistance provided by this program shall be
limited to first-time homebuyers.
51510. The agency shall have all the powers conferred upon it by
this part (commencing with Section 50900) in administering this
chapter.
51500. This chapter shall be known and may be cited as the
California Homebuyer's Downpayment Assistance Program.
51501. The Legislature finds and declares all of the following:
(a) There is a continuing and urgent need to provide affordable
mortgage financing to meet the increasingly unfulfilled housing needs
of citizens of this state.
(b) The high cost of housing impedes the ability of California
employers to compete in the national marketplace for employees.
(c) Affordable housing enhances the quality of life for California
residents and provides fuel for the state's economic engine.
(d) Housing is a critical component of the California economy,
both as an income producing sector and a principal factor in economic
development.
(e) California's housing crisis severely impacts families
struggling to provide safe, stable homes for their children to grow
and learn and the workers who are the backbone of many of the state's
most important industries.
(f) The percentage of Californians able to purchase their own
homes continues to decline, even as that percentage climbs for the
rest of the nation.
(g) Therefore, this chapter is enacted to make existing financing
for residential mortgages more affordable to California's homebuyers.
51502. The purpose of the California Homebuyer's Downpayment
Assistance Program is to assist first-time low- and moderate-income
homebuyers utilizing existing mortgage financing.
51504. (a) The agency shall administer a downpayment assistance
program that includes, but is not limited to, all of the following:
(1) Downpayment assistance shall include, but not be limited to, a
deferred-payment, low-interest, junior mortgage loan to reduce the
principal and interest payments and make financing affordable to
first-time low- and moderate-income home buyers.
(2) (A) Except as provided in subparagraph (B) or (C), the amount
of downpayment assistance shall not exceed 3 percent of the home sale
price.
(B) The amount of downpayment assistance for a new home within an
infill opportunity zone, as defined in Section 65088.1 of the
Government Code, a transit village development district, as defined
in Section 65460.4 of the Government Code, or a transit-oriented
development specific plan area, as defined in paragraph (6), shall
not exceed 5 percent of the purchase price or the appraised value,
whichever amount is less, of the new home. The borrower of the
downpayment assistance shall provide the lender originating the loan
with a certification from the local government agency administering
the infill opportunity zone, the transit village development
district, or the transit-oriented development specific plan area that
states that the property involved in the loan transaction is within
the boundaries of either the infill opportunity zone, the transit
village development district, or the transit-oriented development
specific plan area.
(C) Notwithstanding paragraph (1), the agency may, but is not
required to, provide downpayment assistance that does not exceed 6
percent of the home sale price to first-time low-income home buyers
who, as documented to the agency by a nonprofit organization that is
certified and funded to provide home ownership counseling by a
federally funded national nonprofit corporation, are purchasing a
residence in a community revitalization area targeted by the
nonprofit organization as a neighborhood in need of economic
stimulation, renovation, and rehabilitation through efforts that
include increased home ownership opportunities for low-income
families. The agency shall not use more than six million dollars
($6,000,000) in funds made available pursuant to Section 53533 for
the purposes of this paragraph.
(3) The amount of the downpayment assistance shall be secured by a
deed of trust in a junior position to the primary financing
provided. The term of the loan for the downpayment assistance shall
not exceed the term of the primary loan.
(4) (A) Except as provided in subparagraph (B), the amount of the
downpayment assistance shall be due and payable at the end of the
term or upon sale of or refinancing of the home. The borrower may
refinance the mortgages on the home provided that the principal and
accrued interest on the junior mortgage loan securing the downpayment
assistance are repaid in full. All repayments shall be made to the
agency to be reallocated for the purposes of this chapter.
(B) The agency may, in its discretion, permit the downpayment
assistance loan to be subordinated to refinancing if it determines
that the borrower has demonstrated hardship, subordination is
required to avoid foreclosure, and the new loan meets the agency's
underwriting requirements. The agency may permit subordination on
those terms and conditions as it determines are reasonable.
(5) The agency may use up to 5 percent of the funds appropriated
by the Legislature for purposes of this chapter to administer this
program.
(6) For purposes of this section, "transit-oriented development
specific plan area" means a specific plan that meets the criteria set
forth in Section 65451 of the Government Code, is centered around a
rail or light-rail station, ferry terminal, bus hub, or bus transfer
station, and is intended to achieve a higher density use of land that
facilitates use of the transit station.
(b) In addition to the downpayment assistance program authorized
by subdivision (a), the agency may, at its discretion, use not more
than seventy-five million dollars ($75,000,000) of the funds
available pursuant to this chapter to finance the acquisition of land
and the construction and development of for-sale residential
structures, through short-term loans pursuant to its authority
pursuant to Section 51100. However, the agency shall make downpayment
assistance provided pursuant to paragraph (1), subparagraphs (A) and
(B) of paragraph (2), and paragraphs (3) to (5), inclusive, of
subdivision (a) the priority use for these funds. A loan made
pursuant to this section is not subject to Article 4 (commencing with
Section 51175) of Chapter 5.
51505. (a) In addition to the downpayment assistance program
authorized by Section 51504, and notwithstanding any provision of
Section 51504 to the contrary, the agency shall provide downpayment
assistance from the funds set aside pursuant to subparagraph (D) of
paragraph (7) of subdivision (a) of Section 53533 for the purposes of
the portion of the Extra Credit Teacher Home Purchase Program
provided for in subdivision (g) of Section 8869.84 of the Government
Code and any other school personnel home ownership assistance
programs as set forth by the California Debt Limit Allocation
Committee, as operated by the agency. Notwithstanding the foregoing,
the agency may, but is not required to, provide downpayment
assistance pursuant to this section to any local issuer participating
in the Extra Credit Teacher Home Purchase Program and any other
school personnel home ownership assistance programs as set forth by
the California Debt Limit Allocation Committee.
(b) Downpayment assistance for purposes of this section shall be
subject to, and shall meet the requirements of, the Extra Credit
Teacher Home Purchase Program and any other school personnel home
ownership programs as set forth by the California Debt Limit
Allocation Committee, and shall include, but not be limited to,
deferred payment, low interest rate loans where payment of principal
and interest is deferred until the time that the home is sold or
refinanced. This downpayment assistance shall meet the requirements
of subdivisions (d) and (e) of Section 51504.
(c) Loans made pursuant to this section may include a provision
whereby interest, principal, or both, of the loan is forgiven upon
conditions to be established by the agency, or any other provision
designed to carry out the purposes of the Extra Credit Teacher Home
Purchase Program and any other school personnel home ownership
programs as set forth by the California Debt Limit Allocation
Committee.
(d) Downpayment assistance pursuant to this section shall not
exceed the greater of seven thousand five hundred dollars ($7,500) or
3 percent of the home sales price. However, the agency may, with the
concurrence of the California Debt Limit Allocation Committee,
establish higher assistance limits where necessary to ensure
sufficient assistance to allow program participation in high cost
areas.
51506. The downpayment assistance provided by this program shall be
limited to first-time homebuyers.
51510. The agency shall have all the powers conferred upon it by
this part (commencing with Section 50900) in administering this
chapter.
51500. This chapter shall be known and may be cited as the
California Homebuyer's Downpayment Assistance Program.
51501. The Legislature finds and declares all of the following:
(a) There is a continuing and urgent need to provide affordable
mortgage financing to meet the increasingly unfulfilled housing needs
of citizens of this state.
(b) The high cost of housing impedes the ability of California
employers to compete in the national marketplace for employees.
(c) Affordable housing enhances the quality of life for California
residents and provides fuel for the state's economic engine.
(d) Housing is a critical component of the California economy,
both as an income producing sector and a principal factor in economic
development.
(e) California's housing crisis severely impacts families
struggling to provide safe, stable homes for their children to grow
and learn and the workers who are the backbone of many of the state's
most important industries.
(f) The percentage of Californians able to purchase their own
homes continues to decline, even as that percentage climbs for the
rest of the nation.
(g) Therefore, this chapter is enacted to make existing financing
for residential mortgages more affordable to California's homebuyers.
51502. The purpose of the California Homebuyer's Downpayment
Assistance Program is to assist first-time low- and moderate-income
homebuyers utilizing existing mortgage financing.
51504. (a) The agency shall administer a downpayment assistance
program that includes, but is not limited to, all of the following:
(1) Downpayment assistance shall include, but not be limited to, a
deferred-payment, low-interest, junior mortgage loan to reduce the
principal and interest payments and make financing affordable to
first-time low- and moderate-income home buyers.
(2) (A) Except as provided in subparagraph (B) or (C), the amount
of downpayment assistance shall not exceed 3 percent of the home sale
price.
(B) The amount of downpayment assistance for a new home within an
infill opportunity zone, as defined in Section 65088.1 of the
Government Code, a transit village development district, as defined
in Section 65460.4 of the Government Code, or a transit-oriented
development specific plan area, as defined in paragraph (6), shall
not exceed 5 percent of the purchase price or the appraised value,
whichever amount is less, of the new home. The borrower of the
downpayment assistance shall provide the lender originating the loan
with a certification from the local government agency administering
the infill opportunity zone, the transit village development
district, or the transit-oriented development specific plan area that
states that the property involved in the loan transaction is within
the boundaries of either the infill opportunity zone, the transit
village development district, or the transit-oriented development
specific plan area.
(C) Notwithstanding paragraph (1), the agency may, but is not
required to, provide downpayment assistance that does not exceed 6
percent of the home sale price to first-time low-income home buyers
who, as documented to the agency by a nonprofit organization that is
certified and funded to provide home ownership counseling by a
federally funded national nonprofit corporation, are purchasing a
residence in a community revitalization area targeted by the
nonprofit organization as a neighborhood in need of economic
stimulation, renovation, and rehabilitation through efforts that
include increased home ownership opportunities for low-income
families. The agency shall not use more than six million dollars
($6,000,000) in funds made available pursuant to Section 53533 for
the purposes of this paragraph.
(3) The amount of the downpayment assistance shall be secured by a
deed of trust in a junior position to the primary financing
provided. The term of the loan for the downpayment assistance shall
not exceed the term of the primary loan.
(4) (A) Except as provided in subparagraph (B), the amount of the
downpayment assistance shall be due and payable at the end of the
term or upon sale of or refinancing of the home. The borrower may
refinance the mortgages on the home provided that the principal and
accrued interest on the junior mortgage loan securing the downpayment
assistance are repaid in full. All repayments shall be made to the
agency to be reallocated for the purposes of this chapter.
(B) The agency may, in its discretion, permit the downpayment
assistance loan to be subordinated to refinancing if it determines
that the borrower has demonstrated hardship, subordination is
required to avoid foreclosure, and the new loan meets the agency's
underwriting requirements. The agency may permit subordination on
those terms and conditions as it determines are reasonable.
(5) The agency may use up to 5 percent of the funds appropriated
by the Legislature for purposes of this chapter to administer this
program.
(6) For purposes of this section, "transit-oriented development
specific plan area" means a specific plan that meets the criteria set
forth in Section 65451 of the Government Code, is centered around a
rail or light-rail station, ferry terminal, bus hub, or bus transfer
station, and is intended to achieve a higher density use of land that
facilitates use of the transit station.
(b) In addition to the downpayment assistance program authorized
by subdivision (a), the agency may, at its discretion, use not more
than seventy-five million dollars ($75,000,000) of the funds
available pursuant to this chapter to finance the acquisition of land
and the construction and development of for-sale residential
structures, through short-term loans pursuant to its authority
pursuant to Section 51100. However, the agency shall make downpayment
assistance provided pursuant to paragraph (1), subparagraphs (A) and
(B) of paragraph (2), and paragraphs (3) to (5), inclusive, of
subdivision (a) the priority use for these funds. A loan made
pursuant to this section is not subject to Article 4 (commencing with
Section 51175) of Chapter 5.
51505. (a) In addition to the downpayment assistance program
authorized by Section 51504, and notwithstanding any provision of
Section 51504 to the contrary, the agency shall provide downpayment
assistance from the funds set aside pursuant to subparagraph (D) of
paragraph (7) of subdivision (a) of Section 53533 for the purposes of
the portion of the Extra Credit Teacher Home Purchase Program
provided for in subdivision (g) of Section 8869.84 of the Government
Code and any other school personnel home ownership assistance
programs as set forth by the California Debt Limit Allocation
Committee, as operated by the agency. Notwithstanding the foregoing,
the agency may, but is not required to, provide downpayment
assistance pursuant to this section to any local issuer participating
in the Extra Credit Teacher Home Purchase Program and any other
school personnel home ownership assistance programs as set forth by
the California Debt Limit Allocation Committee.
(b) Downpayment assistance for purposes of this section shall be
subject to, and shall meet the requirements of, the Extra Credit
Teacher Home Purchase Program and any other school personnel home
ownership programs as set forth by the California Debt Limit
Allocation Committee, and shall include, but not be limited to,
deferred payment, low interest rate loans where payment of principal
and interest is deferred until the time that the home is sold or
refinanced. This downpayment assistance shall meet the requirements
of subdivisions (d) and (e) of Section 51504.
(c) Loans made pursuant to this section may include a provision
whereby interest, principal, or both, of the loan is forgiven upon
conditions to be established by the agency, or any other provision
designed to carry out the purposes of the Extra Credit Teacher Home
Purchase Program and any other school personnel home ownership
programs as set forth by the California Debt Limit Allocation
Committee.
(d) Downpayment assistance pursuant to this section shall not
exceed the greater of seven thousand five hundred dollars ($7,500) or
3 percent of the home sales price. However, the agency may, with the
concurrence of the California Debt Limit Allocation Committee,
establish higher assistance limits where necessary to ensure
sufficient assistance to allow program participation in high cost
areas.
51506. The downpayment assistance provided by this program shall be
limited to first-time homebuyers.
51510. The agency shall have all the powers conferred upon it by
this part (commencing with Section 50900) in administering this
chapter.
