52020. (a) For purposes of a home financing program authorized by
this part, a city or county has the following powers and duties:
(1) To acquire, contract, and enter into advance commitments to
acquire home mortgages made or owned by lending institutions at the
purchase prices and upon the other terms and conditions as shall be
determined by the city or county or other person as it may designate
as its agent, to make and execute contracts with lending institutions
for the origination and servicing of home mortgages, and to pay the
reasonable value of services rendered under those contracts. Prior to
executing any contract with a lending institution, a city or county
shall adopt regulations establishing criteria for qualification of
lending institutions eligible to originate and service home mortgages
under home financing programs authorized by this part and shall,
with respect to each home financing program, permit each qualified
lending institution that transacts business in the city or county the
opportunity to participate in the program on an equitable basis with
other participating lending institutions. Two or more cities in the
same county, a county and one or more cities within the county, or
two or more adjacent counties and any number of cities within those
counties may enter into an agreement to join or cooperate with one
another in the exercise jointly, or otherwise, of any or all of their
powers for the purpose of financing home mortgages pursuant to this
part with respect to property within the boundaries of any one or
more of the entities.
(2) To make loans to lending institutions under terms and
conditions that, in addition to other provisions as determined by the
city or county, require the lending institutions to use all of the
net proceeds thereof, directly or indirectly, for the making of home
mortgages in an aggregate principal amount equal to the amount of the
net proceeds.
(3) To establish, by rules or regulations, in resolutions relating
to any issuance of bonds, or in any documents relating to the
issuance, standards and requirements applicable to the purchase of
home mortgages or the making of loans to lending institutions as the
city or county deems necessary or desirable to effectuate the
purposes of this part, which may include without limitation any of
the following:
(A) The time within which lending institutions are required to
make commitments and disbursements for home mortgages.
(B) The location and other characteristics of homes to be financed
by home mortgages.
(C) The terms and conditions of home mortgages to be acquired.
(D) The amounts and types of any insurance coverage required on
homes, home mortgages, and bonds.
(E) The representations and warranties of lending institutions
confirming compliance with the standards and requirements.
(F) Restrictions as to interest rate and other terms of home
mortgages or the return realized therefrom by lending institutions.
(G) The type and amount of collateral security to be provided to
assure repayment of any loans from the city or county and to assure
repayment of bonds.
(H) Any other matters related to the purchase of home mortgages or
the making of loans to lending institutions as deemed relevant by
the city or county.
(4) To require from each lending institution from which home
mortgages are purchased or to which loans are made the submission of
evidence satisfactory to the city or county of the ability and
intention of the lending institution to make home mortgages, and the
submission, within the time specified by the city or county for
making disbursements for home mortgages, of evidence satisfactory to
the city or county of the making of home mortgages and of compliance
with any standards and requirements established by it.
(b) Each city or county that finances housing pursuant to this
part shall designate a person or entity to administer the program.
(c) Each city or county that finances housing pursuant to this
part shall adopt regulations establishing criteria for qualification
of persons and families, which may differ among different cities or
counties to reflect varying economic and housing conditions. In
developing these criteria, factors similar to the following shall be
taken into consideration:
(1) The amount of the income of the person or family that is
available for housing needs.
(2) The size of the household.
(3) The costs and condition of available housing.
(4) The eligibility of the persons or families for federal housing
assistance of any type.
(d) (1) Criteria for qualification of persons and families
pursuant to this section shall include a maximum household income,
which maximum shall not exceed the following:
(A) One hundred twenty percent of the median household income for
mortgages made for improving a home, for refinancing a home, or for
homes where the purchaser will be the first occupant. Upon the resale
of a home for which financing was originally provided under this
paragraph, the maximum income of persons and families also shall be
120 percent of the median household income.
(B) One hundred twenty percent of the median household income for
mortgages where the purchaser will not be the first occupant.
However, the city or county shall ensure that no less than 50 percent
of the funds allocated for home mortgages where the purchaser will
not be the first occupant shall be for households whose income does
not exceed 80 percent of that median household income. However, the
legislative body of the city or county may, by resolution, increase
this income limitation to 90 percent of median household income if
the legislative body finds that there are insufficient numbers of
creditworthy persons whose income does not exceed 80 percent of
median household income. The resolution is final and conclusive as to
the findings required by this paragraph.
(C) One hundred fifty percent of the median household income for
mortgages made for improving a home, for refinancing a home, or for
homes where the purchaser will be the first occupant in any city, the
entire area of which, or in any county in which a portion of the
county, is designated by the United States Department of Commerce,
Economic Development Administration as a special impact area within a
Title IV redevelopment area, pursuant to Section 401 of the federal
Public Works and Economic Development Act of 1965, as amended, and
that is eligible for Urban Development Action Grant funds under the
current distress standards established for cities and counties by the
Secretary of the United States Department of Housing and Urban
Development pursuant to Section 119 of the Housing and Community
Development Act of 1974, if the homes purchased, refinanced, or
improved are situated within the boundaries of a special impact area
as defined by the Economic Development Administration, and that
designation is in effect on the date of sale of revenue bonds issued
under this part.
(2) As used in this subdivision, "median household income" means
the highest of (A) statewide median household income, (B) countywide
median household income, or (C) median family income for an area, as
determined by the United States Department of Housing and Urban
Development, with respect to either a standard metropolitan
statistical area or an area outside of a standard metropolitan
statistical area.
(e) (1) Subdivision (d) shall not apply with respect to home
finance programs funded with amounts made available by the issuance
of revenue bonds that, for federal tax law purposes, are bonds
refunding qualified mortgage bonds issued before January 1, 1987, and
that satisfy the requirements of subdivision (a) of Section 1313 of
the federal Tax Reform Act of 1986. With respect to these programs,
the maximum household income for qualification of persons and
families pursuant to this section shall be the following:
(A) One hundred fifty percent of the median household income for
mortgages made for improving a home or for homes where the purchaser
will be the first occupant. Upon the resale of a home for which
financing was originally provided under this paragraph, the maximum
income of persons and families also shall be 150 percent of the
median household income. For purposes of this paragraph, a mortgage
made for improving a home includes a home improvement loan as defined
in Section 143 of Title 26 of the United States Code.
(B) One hundred twenty percent of the median household income
where the purchaser will not be the first occupant. However, the city
or county shall ensure that no less than 20 percent of the funds
allocated for home mortgages where the purchaser will not be the
first occupant shall be for households whose income does not exceed
110 percent of that median household income. However, the legislative
body of the city or county may, by resolution, increase this income
limitation to 120 percent of the median household income if the
legislative body finds that there are insufficient numbers of
creditworthy persons whose income does not exceed 110 percent of the
median household income. The resolution is final and conclusive as to
the findings required by this paragraph. However, the finding shall
not be made by the legislative body before six months from the date
mortgages were first made under the program and only if participating
lenders have entered into an agreement with the city, county, or
city and county that lenders will advertise at least monthly the
availability of funds and will forfeit one-quarter of their
origination fees if they are unable to use 20 percent of the funds to
make mortgages to households whose income does not exceed 110
percent of the median income.
(C) One hundred fifty percent of the median household income for
mortgages made for improving a home or for homes where the purchaser
will be the first occupant in any city, the entire area of which, or
in any county in which a portion of the county, is designated by the
United States Department of Commerce, Economic Development
Administration as a special impact area within a Title IV
redevelopment area, pursuant to Section 401 of the federal Public
Works and Economic Development Act of 1965, as amended, and that is
eligible for Urban Development Action Grant funds under the current
distress standards established for cities and counties by the
Secretary of the United States Department of Housing and Urban
Development pursuant to Section 119 of the Housing and Community
Development Act of 1974, if the homes purchased or improved are
situated within the boundaries of a special impact area as defined by
the Economic Development Administration, and that designation is in
effect on the date of sale of revenue bonds issued under this part.
(2) As used in this subdivision, "median household income" means
the highest of (A) statewide median household income, (B) countywide
median household income, or (C) median family income for an area, as
determined by the United States Department of Housing and Urban
Development, with respect to either a standard metropolitan
statistical area or an area outside of a standard metropolitan
statistical area.
(f) Each city or county that finances housing pursuant to this
part shall require each mortgagor under the program to certify his or
her intention to occupy the home for a minimum of two years after
receiving a home mortgage, with appropriate exceptions in hardship
cases determined by the city or county.
(g) Each city and county may do any and all things necessary to
carry out the purposes and exercise the powers expressly granted by
this part.
(h) This section shall remain in effect only until January 1,
2012, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2012, deletes or extends
that date.
52020. (a) For purposes of a home financing program authorized by
this part, a city or county has the following powers and duties:
(1) To acquire, contract, and enter into advance commitments to
acquire home mortgages made or owned by lending institutions at the
purchase prices and upon the other terms and conditions as shall be
determined by the city or county or other person as it may designate
as its agent, to make and execute contracts with lending institutions
for the origination and servicing of home mortgages, and to pay the
reasonable value of services rendered under those contracts. Prior to
executing any contract with a lending institution, a city or county
shall adopt regulations establishing criteria for qualification of
lending institutions eligible to originate and service home mortgages
under home financing programs authorized by this part and shall,
with respect to each home financing program, permit each qualified
lending institution that transacts business in the city or county the
opportunity to participate in the program on an equitable basis with
other participating lending institutions. Two or more cities in the
same county, a county and one or more cities within the county, or
two or more adjacent counties and any number of cities within those
counties may enter into an agreement to join or cooperate with one
another in the exercise jointly, or otherwise, of any or all of their
powers for the purpose of financing home mortgages pursuant to this
part with respect to property within the boundaries of any one or
more of the entities.
(2) To make loans to lending institutions under terms and
conditions that, in addition to other provisions as determined by the
city or county, require the lending institutions to use all of the
net proceeds thereof, directly or indirectly, for the making of home
mortgages in an aggregate principal amount equal to the amount of the
net proceeds.
(3) To establish, by rules or regulations, in resolutions relating
to any issuance of bonds, or in any documents relating to the
issuance, standards and requirements applicable to the purchase of
home mortgages or the making of loans to lending institutions as the
city or county deems necessary or desirable to effectuate the
purposes of this part, which may include without limitation any of
the following:
(A) The time within which lending institutions are required to
make commitments and disbursements for home mortgages.
(B) The location and other characteristics of homes to be financed
by home mortgages.
(C) The terms and conditions of home mortgages to be acquired.
(D) The amounts and types of any insurance coverage required on
homes, home mortgages, and bonds.
(E) The representations and warranties of lending institutions
confirming compliance with the standards and requirements.
(F) Restrictions as to interest rate and other terms of home
mortgages or the return realized therefrom by lending institutions.
(G) The type and amount of collateral security to be provided to
assure repayment of any loans from the city or county and to assure
repayment of bonds.
(H) Any other matters related to the purchase of home mortgages or
the making of loans to lending institutions as deemed relevant by
the city or county.
(4) To require from each lending institution from which home
mortgages are purchased or to which loans are made the submission of
evidence satisfactory to the city or county of the ability and
intention of the lending institution to make home mortgages, and the
submission, within the time specified by the city or county for
making disbursements for home mortgages, of evidence satisfactory to
the city or county of the making of home mortgages and of compliance
with any standards and requirements established by it.
(b) Each city or county that finances housing pursuant to this
part shall designate a person or entity to administer the program.
(c) Each city or county that finances housing pursuant to this
part shall adopt regulations establishing criteria for qualification
of persons and families, which may differ among different cities or
counties to reflect varying economic and housing conditions. In
developing these criteria, factors similar to the following shall be
taken into consideration:
(1) The amount of the income of the person or family that is
available for housing needs.
(2) The size of the household.
(3) The costs and condition of available housing.
(4) The eligibility of the persons or families for federal housing
assistance of any type.
(d) (1) Criteria for qualification of persons and families
pursuant to this section shall include a maximum household income,
which maximum shall not exceed the following:
(A) One hundred twenty percent of the median household income for
mortgages made for improving a home or for homes where the purchaser
will be the first occupant. Upon the resale of a home for which
financing was originally provided under this paragraph, the maximum
income of persons and families also shall be 120 percent of the
median household income.
(B) One hundred twenty percent of the median household income for
mortgages where the purchaser will not be the first occupant.
However, the city or county shall ensure that no less than 50 percent
of the funds allocated for home mortgages where the purchaser will
not be the first occupant shall be for households whose income does
not exceed 80 percent of that median household income. However, the
legislative body of the city or county may, by resolution, increase
this income limitation to 90 percent of median household income if
the legislative body finds that there are insufficient numbers of
creditworthy persons whose income does not exceed 80 percent of
median household income. The resolution is final and conclusive as to
the findings required by this paragraph.
(C) One hundred fifty percent of the median household income for
mortgages made for improving a home or for homes where the purchaser
will be the first occupant in any city, the entire area of which, or
in any county in which a portion of the county, is designated by the
United States Department of Commerce, Economic Development
Administration as a special impact area within a Title IV
redevelopment area, pursuant to Section 401 of the federal Public
Works and Economic Development Act of 1965, as amended, and that is
eligible for Urban Development Action Grant funds under the current
distress standards established for cities and counties by the
Secretary of the United States Department of Housing and Urban
Development pursuant to Section 119 of the Housing and Community
Development Act of 1974, if the homes purchased or improved are
situated within the boundaries of a special impact area as defined by
the Economic Development Administration, and that designation is in
effect on the date of sale of revenue bonds issued under this part.
(2) As used in this subdivision, "median household income" means
the highest of (A) statewide median household income, (B) countywide
median household income, or (C) median family income for an area, as
determined by the United States Department of Housing and Urban
Development, with respect to either a standard metropolitan
statistical area or an area outside of a standard metropolitan
statistical area.
(e) (1) Subdivision (d) shall not apply with respect to home
finance programs funded with amounts made available by the issuance
of revenue bonds that, for federal tax law purposes, are bonds
refunding qualified mortgage bonds issued before January 1, 1987, and
that satisfy the requirements of subdivision (a) of Section 1313 of
the federal Tax Reform Act of 1986. With respect to these programs,
the maximum household income for qualification of persons and
families pursuant to this section shall be the following:
(A) One hundred fifty percent of the median household income for
mortgages made for improving a home or for homes where the purchaser
will be the first occupant. Upon the resale of a home for which
financing was originally provided under this paragraph, the maximum
income of persons and families also shall be 150 percent of the
median household income. For purposes of this paragraph, a mortgage
made for improving a home includes a home improvement loan as defined
in Section 143 of Title 26 of the United States Code.
(B) One hundred twenty percent of the median household income
where the purchaser will not be the first occupant. However, the city
or county shall ensure that no less than 20 percent of the funds
allocated for home mortgages where the purchaser will not be the
first occupant shall be for households whose income does not exceed
110 percent of that median household income. However, the legislative
body of the city or county may, by resolution, increase this income
limitation to 120 percent of the median household income if the
legislative body finds that there are insufficient numbers of
creditworthy persons whose income does not exceed 110 percent of the
median household income. The resolution is final and conclusive as to
the findings required by this paragraph. However, the finding shall
not be made by the legislative body before six months from the date
mortgages were first made under the program and only if participating
lenders have entered into an agreement with the city, county, or
city and county that lenders will advertise at least monthly the
availability of funds and will forfeit one-quarter of their
origination fees if they are unable to use 20 percent of the funds to
make mortgages to households whose income does not exceed 110
percent of the median income.
(C) One hundred fifty percent of the median household income for
mortgages made for improving a home or for homes where the purchaser
will be the first occupant in any city, the entire area of which, or
in any county in which a portion of the county, is designated by the
United States Department of Commerce, Economic Development
Administration as a special impact area within a Title IV
redevelopment area, pursuant to Section 401 of the federal Public
Works and Economic Development Act of 1965, as amended, and that is
eligible for Urban Development Action Grant funds under the current
distress standards established for cities and counties by the
Secretary of the United States Department of Housing and Urban
Development pursuant to Section 119 of the Housing and Community
Development Act of 1974, if the homes purchased or improved are
situated within the boundaries of a special impact area as defined by
the Economic Development Administration, and that designation is in
effect on the date of sale of revenue bonds issued under this part.
(2) As used in this subdivision, "median household income" means
the highest of (A) statewide median household income, (B) countywide
median household income, or (C) median family income for an area, as
determined by the United States Department of Housing and Urban
Development, with respect to either a standard metropolitan
statistical area or an area outside of a standard metropolitan
statistical area.
(f) Each city or county that finances housing pursuant to this
part shall require each mortgagor under the program to certify his or
her intention to occupy the home for a minimum of two years after
receiving a home mortgage, with appropriate exceptions in hardship
cases determined by the city or county.
(g) Each city and county may do any and all things necessary to
carry out the purposes and exercise the powers expressly granted by
this part.
(h) This section shall become operative January 1, 2012.
52020.5. (a) For purposes of a home financing program authorized by
this part, the City of Gardena has the following powers and duties:
(1) To acquire, contract, and enter into advance commitments to
acquire, home mortgages made or owned by lending institutions at the
purchase prices and upon the other terms and conditions as shall be
determined by the City of Gardena or other person as it may designate
as its agent, to make and execute contracts with lending
institutions for the origination and servicing of home mortgages and
to pay the reasonable value of services rendered under those
contracts. Prior to executing any contract with a lending
institution, the City of Gardena shall adopt regulations establishing
criteria for qualification of lending institutions eligible to
originate and service home mortgages under home financing programs
authorized by this part and shall, with respect to each home
financing program, permit each qualified lending institution which
transacts business in the City of Gardena the opportunity to
participate in the program on an equitable basis with other
participating lending institutions.
(2) To make loans to lending institutions under terms and
conditions which, in addition to other provisions as determined by
the City of Gardena, require the lending institutions to use all of
the net proceeds thereof, directly or indirectly, for the making of
home mortgages in an aggregate principal amount equal to the amount
of the net proceeds.
(3) To establish, by rules or regulations, in resolutions relating
to any issuance of bonds or in any documents relating to the
issuance, standards and requirements applicable to the purchase of
home mortgages or the making of loans to lending institutions as the
City of Gardena deems necessary or desirable to effectuate the
purposes of this part, which may include without limitation any of
the following:
(A) The time within which lending institutions are required to
make commitments and disbursements for home mortgages.
(B) The location and other characteristics of homes to be financed
by home mortgages.
(C) The terms and conditions of home mortgages to be acquired.
(D) The amounts and types of any insurance coverage required on
homes, home mortgages and bonds.
(E) The representations and warranties of lending institutions
confirming compliance with the standards and requirements.
(F) Restrictions as to interest rate and other terms of home
mortgages or the return realized therefrom by lending institutions.
(G) The type and amount of collateral security to be provided to
assure repayment of any loans from the City of Gardena and to assure
repayment of bonds.
(H) Any other matters related to the purchase of home mortgages or
the making of loans to lending institutions as deemed relevant by
the City of Gardena.
(4) To require from each lending institution from which home
mortgages are purchased or to which loans are made the submission of
evidence satisfactory to the City of Gardena of the ability and
intention of the lending institution to make home mortgages, and the
submission, within the time specified by the City of Gardena for
making disbursements for home mortgages, of evidence satisfactory to
the City of Gardena of the making of home mortgages and of compliance
with any standards and requirements established by it.
(b) The City of Gardena shall designate a person or entity to
administer the program.
(c) The City of Gardena shall adopt regulations establishing
criteria for qualifications of persons and families. In developing
this criteria, factors similar to the following shall be taken into
consideration:
(1) The amount of the income of the person or family that is
available for housing needs.
(2) The size of the household.
(3) The costs and condition of available housing.
(4) The eligibility of the persons or families for federal housing
assistance of any type.
(5) That first-time homebuyers eligible to be assisted under this
section be California residents whose annual gross income does not
exceed 35 percent of the median area purchase price of a resale house
as determined by the City of Gardena.
(6) The purchase price of homes eligible to be assisted does not
exceed 100 percent of the median area purchase price of resale homes.
(d) Criteria for qualification of persons and families pursuant to
this section shall include a maximum household income, which maximum
shall not exceed the following:
(1) One hundred twenty percent of the median household income for
mortgages made for improving a home or for homes where the purchaser
will be the first occupant. Upon the resale of a home for which
financing was originally provided under this paragraph, the maximum
income of persons and families shall also be 120 percent of the
median household income.
(2) The median household income where the purchaser will not be
the first occupant. However, the City of Gardena shall ensure that no
less than 50 percent of the funds allocated for home mortgages where
the purchaser will not be the first occupant shall be for households
whose income does not exceed 80 percent of that median household
income. However, the legislative body of the City of Gardena may, by
resolution, increase this income limitation to 90 percent of median
household income if the legislative body finds that there are
insufficient numbers of creditworthy persons whose income does not
exceed 80 percent of median household income. The resolution is final
and conclusive as to the findings required by this paragraph.
(3) One hundred fifty percent of the median household income for
mortgages made for improving a home or for homes where the purchaser
will be the first occupant in the City of Gardena if that city
designated by the United States Department of Commerce, Economic
Development Administration as a special impact area within a Title IV
redevelopment area, pursuant to Section 401 of the federal Public
Works and Economic Development Act of 1965, as amended, and which is
eligible for Urban Development Action Grant funds under the current
distress standards established for cities by the Secretary of the
United States Department of Housing and Urban Development pursuant to
Section 119 of the Housing and Community Development Act of 1974, if
the homes purchased or improved are situated within the boundaries
of a special impact area as defined by the Economic Development
Administration, and that designation is in effect on the date of sale
of revenue bonds issued under this part.
As used in this subdivision, "median household income" means the
highest of (A) statewide median household income, (B) countywide
median household income, or (C) median family income for area as
determined by the United States Department of Housing and Urban
Development, with respect to either a standard metropolitan
statistical area or an area outside of a standard metropolitan
statistical area.
(e) Subdivision (d) shall not apply with respect to home finance
programs funded with amounts made available by the issuance of
revenue bonds that (1) for federal tax law purposes are bonds
refunding qualified mortgage bonds issued before January 1, 1987, and
(2) satisfy the requirements of subdivision (a) of Section 1313 of
the federal Tax Reform Act of 1986. With respect to these programs,
the maximum household income for qualification of persons and
families pursuant to this section shall be the following:
(1) One hundred fifty percent of the median household income for
mortgages made for improving a home or for homes where the purchaser
will be the first occupant. Upon the resale of a home for which
financing was originally provided under this paragraph, the maximum
income of persons and families shall also be 150 percent of the
median household income. For purposes of this paragraph, a mortgage
made for improving a home includes a home improvement loan as defined
in Section 143 of Title 26 of the United States Code.
(2) One hundred twenty percent of the median household income
where the purchaser will not be the first occupant. However, the City
of Gardena shall ensure that no less than 20 percent of the funds
allocated for home mortgages where the purchaser will not be the
first occupant shall be for households whose income does not exceed
110 percent of that median household income. However, the legislative
body of the city or county may, by resolution, increase this income
limitation to 120 percent of the median household income if the
legislative body finds that there are insufficient numbers of
creditworthy persons whose income does not exceed 110 percent of the
median household income. The resolution is final and conclusive as to
the findings required by this paragraph. However, the finding shall
not be made by the legislative body before six months from the date
mortgages were first made under the program and only if participating
lenders have entered into an agreement with the City of Gardena that
lenders will advertise at least monthly the availability of funds
and will forfeit one-quarter of their origination fees if they are
unable to use 20 percent of the funds to make mortgages to households
whose income does not exceed 110 percent of the median income.
(3) One hundred fifty percent of the median household income for
mortgages made for improving a home or for homes where the purchaser
will be the first occupant in the City of Gardena if that city is
designated by the United States Department of Commerce, Economic
Development Administration as a special impact area within a Title IV
redevelopment area, pursuant to Section 401 of the federal Public
Works and Economic Development Act of 1965, as amended, and which is
eligible for Urban Development Action Grant funds under the current
distress standards established for cities by the Secretary of the
United States Department of Housing and Urban Development pursuant to
Section 119 of the Housing and Community Development Act of 1974, if
the homes purchased or improved are situated within the boundaries
of a special impact area as defined by the Economic Development
Administration, and that designation is in effect on the date of sale
of revenue bonds issued under this part.
As used in this subdivision, "median household income" means the
highest of (1) statewide median household income, (2) countywide
median household income, or (3) median family income for the area as
determined by the United States Department of Housing and Urban
Development, with respect to either a standard metropolitan
statistical area or an area outside of a standard metropolitan
statistical area.
(f) (1) Except as otherwise provided in paragraphs (2) and (3),
the City of Gardena shall allocate no less than 60 percent of the
dollar amount of its financing from bond proceeds to fund loans for
the purchase of homes where the purchaser will be the first occupant,
or for substantial rehabilitation. As used in this chapter,
"substantial rehabilitation" means rehabilitation in which the costs
of rehabilitation equal or exceed 20 percent of the value of the
structure after rehabilitation.
(2) Paragraph (1) does not apply to an issue of bonds for which
all of the proceeds of the bond issuance are allocated to fund loans
for home improvement or substantial rehabilitation.
(3) Paragraph (1) shall not apply to that portion of the proceeds
of any bonds issued to finance home mortgages for first-time
homebuyers.
(g) The City of Gardena shall require each mortgagor under the
program to certify his or her intention to occupy the home for a
minimum of two years after receiving a home mortgage, with
appropriate exceptions in hardship cases determined by the City of
Gardena.
(h) The City of Gardena may do any and all things necessary to
carry out the purposes and exercise the powers expressly granted by
this part.
52021. A home financing program authorized by this part shall not
be implemented unless the program complies with the land use element
and the housing element which is required to be included in the
general plan of the city or county by Section 65302 of the Government
Code.
52022. Notwithstanding Section 711 of the Civil Code, any
indebtedness incurred pursuant to a mortgage financed under the terms
of this part shall be subject to acceleration and the balance owing
declared immediately due and payable upon the sale of the home to a
purchaser who does not meet the required qualifications for borrowers
of subdivision (f) of Section 52020 or any more stringent
qualifications as the city or county may require.
52023. In providing financing for home mortgages pursuant to this
part, a lending institution shall incur no liability in any part
based on any policy or procedure which has been adopted by the city
or county unless it is contained in the contract between the lending
institution and the city or county, its officers, agents or trustees.
52020. (a) For purposes of a home financing program authorized by
this part, a city or county has the following powers and duties:
(1) To acquire, contract, and enter into advance commitments to
acquire home mortgages made or owned by lending institutions at the
purchase prices and upon the other terms and conditions as shall be
determined by the city or county or other person as it may designate
as its agent, to make and execute contracts with lending institutions
for the origination and servicing of home mortgages, and to pay the
reasonable value of services rendered under those contracts. Prior to
executing any contract with a lending institution, a city or county
shall adopt regulations establishing criteria for qualification of
lending institutions eligible to originate and service home mortgages
under home financing programs authorized by this part and shall,
with respect to each home financing program, permit each qualified
lending institution that transacts business in the city or county the
opportunity to participate in the program on an equitable basis with
other participating lending institutions. Two or more cities in the
same county, a county and one or more cities within the county, or
two or more adjacent counties and any number of cities within those
counties may enter into an agreement to join or cooperate with one
another in the exercise jointly, or otherwise, of any or all of their
powers for the purpose of financing home mortgages pursuant to this
part with respect to property within the boundaries of any one or
more of the entities.
(2) To make loans to lending institutions under terms and
conditions that, in addition to other provisions as determined by the
city or county, require the lending institutions to use all of the
net proceeds thereof, directly or indirectly, for the making of home
mortgages in an aggregate principal amount equal to the amount of the
net proceeds.
(3) To establish, by rules or regulations, in resolutions relating
to any issuance of bonds, or in any documents relating to the
issuance, standards and requirements applicable to the purchase of
home mortgages or the making of loans to lending institutions as the
city or county deems necessary or desirable to effectuate the
purposes of this part, which may include without limitation any of
the following:
(A) The time within which lending institutions are required to
make commitments and disbursements for home mortgages.
(B) The location and other characteristics of homes to be financed
by home mortgages.
(C) The terms and conditions of home mortgages to be acquired.
(D) The amounts and types of any insurance coverage required on
homes, home mortgages, and bonds.
(E) The representations and warranties of lending institutions
confirming compliance with the standards and requirements.
(F) Restrictions as to interest rate and other terms of home
mortgages or the return realized therefrom by lending institutions.
(G) The type and amount of collateral security to be provided to
assure repayment of any loans from the city or county and to assure
repayment of bonds.
(H) Any other matters related to the purchase of home mortgages or
the making of loans to lending institutions as deemed relevant by
the city or county.
(4) To require from each lending institution from which home
mortgages are purchased or to which loans are made the submission of
evidence satisfactory to the city or county of the ability and
intention of the lending institution to make home mortgages, and the
submission, within the time specified by the city or county for
making disbursements for home mortgages, of evidence satisfactory to
the city or county of the making of home mortgages and of compliance
with any standards and requirements established by it.
(b) Each city or county that finances housing pursuant to this
part shall designate a person or entity to administer the program.
(c) Each city or county that finances housing pursuant to this
part shall adopt regulations establishing criteria for qualification
of persons and families, which may differ among different cities or
counties to reflect varying economic and housing conditions. In
developing these criteria, factors similar to the following shall be
taken into consideration:
(1) The amount of the income of the person or family that is
available for housing needs.
(2) The size of the household.
(3) The costs and condition of available housing.
(4) The eligibility of the persons or families for federal housing
assistance of any type.
(d) (1) Criteria for qualification of persons and families
pursuant to this section shall include a maximum household income,
which maximum shall not exceed the following:
(A) One hundred twenty percent of the median household income for
mortgages made for improving a home, for refinancing a home, or for
homes where the purchaser will be the first occupant. Upon the resale
of a home for which financing was originally provided under this
paragraph, the maximum income of persons and families also shall be
120 percent of the median household income.
(B) One hundred twenty percent of the median household income for
mortgages where the purchaser will not be the first occupant.
However, the city or county shall ensure that no less than 50 percent
of the funds allocated for home mortgages where the purchaser will
not be the first occupant shall be for households whose income does
not exceed 80 percent of that median household income. However, the
legislative body of the city or county may, by resolution, increase
this income limitation to 90 percent of median household income if
the legislative body finds that there are insufficient numbers of
creditworthy persons whose income does not exceed 80 percent of
median household income. The resolution is final and conclusive as to
the findings required by this paragraph.
(C) One hundred fifty percent of the median household income for
mortgages made for improving a home, for refinancing a home, or for
homes where the purchaser will be the first occupant in any city, the
entire area of which, or in any county in which a portion of the
county, is designated by the United States Department of Commerce,
Economic Development Administration as a special impact area within a
Title IV redevelopment area, pursuant to Section 401 of the federal
Public Works and Economic Development Act of 1965, as amended, and
that is eligible for Urban Development Action Grant funds under the
current distress standards established for cities and counties by the
Secretary of the United States Department of Housing and Urban
Development pursuant to Section 119 of the Housing and Community
Development Act of 1974, if the homes purchased, refinanced, or
improved are situated within the boundaries of a special impact area
as defined by the Economic Development Administration, and that
designation is in effect on the date of sale of revenue bonds issued
under this part.
(2) As used in this subdivision, "median household income" means
the highest of (A) statewide median household income, (B) countywide
median household income, or (C) median family income for an area, as
determined by the United States Department of Housing and Urban
Development, with respect to either a standard metropolitan
statistical area or an area outside of a standard metropolitan
statistical area.
(e) (1) Subdivision (d) shall not apply with respect to home
finance programs funded with amounts made available by the issuance
of revenue bonds that, for federal tax law purposes, are bonds
refunding qualified mortgage bonds issued before January 1, 1987, and
that satisfy the requirements of subdivision (a) of Section 1313 of
the federal Tax Reform Act of 1986. With respect to these programs,
the maximum household income for qualification of persons and
families pursuant to this section shall be the following:
(A) One hundred fifty percent of the median household income for
mortgages made for improving a home or for homes where the purchaser
will be the first occupant. Upon the resale of a home for which
financing was originally provided under this paragraph, the maximum
income of persons and families also shall be 150 percent of the
median household income. For purposes of this paragraph, a mortgage
made for improving a home includes a home improvement loan as defined
in Section 143 of Title 26 of the United States Code.
(B) One hundred twenty percent of the median household income
where the purchaser will not be the first occupant. However, the city
or county shall ensure that no less than 20 percent of the funds
allocated for home mortgages where the purchaser will not be the
first occupant shall be for households whose income does not exceed
110 percent of that median household income. However, the legislative
body of the city or county may, by resolution, increase this income
limitation to 120 percent of the median household income if the
legislative body finds that there are insufficient numbers of
creditworthy persons whose income does not exceed 110 percent of the
median household income. The resolution is final and conclusive as to
the findings required by this paragraph. However, the finding shall
not be made by the legislative body before six months from the date
mortgages were first made under the program and only if participating
lenders have entered into an agreement with the city, county, or
city and county that lenders will advertise at least monthly the
availability of funds and will forfeit one-quarter of their
origination fees if they are unable to use 20 percent of the funds to
make mortgages to households whose income does not exceed 110
percent of the median income.
(C) One hundred fifty percent of the median household income for
mortgages made for improving a home or for homes where the purchaser
will be the first occupant in any city, the entire area of which, or
in any county in which a portion of the county, is designated by the
United States Department of Commerce, Economic Development
Administration as a special impact area within a Title IV
redevelopment area, pursuant to Section 401 of the federal Public
Works and Economic Development Act of 1965, as amended, and that is
eligible for Urban Development Action Grant funds under the current
distress standards established for cities and counties by the
Secretary of the United States Department of Housing and Urban
Development pursuant to Section 119 of the Housing and Community
Development Act of 1974, if the homes purchased or improved are
situated within the boundaries of a special impact area as defined by
the Economic Development Administration, and that designation is in
effect on the date of sale of revenue bonds issued under this part.
(2) As used in this subdivision, "median household income" means
the highest of (A) statewide median household income, (B) countywide
median household income, or (C) median family income for an area, as
determined by the United States Department of Housing and Urban
Development, with respect to either a standard metropolitan
statistical area or an area outside of a standard metropolitan
statistical area.
(f) Each city or county that finances housing pursuant to this
part shall require each mortgagor under the program to certify his or
her intention to occupy the home for a minimum of two years after
receiving a home mortgage, with appropriate exceptions in hardship
cases determined by the city or county.
(g) Each city and county may do any and all things necessary to
carry out the purposes and exercise the powers expressly granted by
this part.
(h) This section shall remain in effect only until January 1,
2012, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2012, deletes or extends
that date.
52020. (a) For purposes of a home financing program authorized by
this part, a city or county has the following powers and duties:
(1) To acquire, contract, and enter into advance commitments to
acquire home mortgages made or owned by lending institutions at the
purchase prices and upon the other terms and conditions as shall be
determined by the city or county or other person as it may designate
as its agent, to make and execute contracts with lending institutions
for the origination and servicing of home mortgages, and to pay the
reasonable value of services rendered under those contracts. Prior to
executing any contract with a lending institution, a city or county
shall adopt regulations establishing criteria for qualification of
lending institutions eligible to originate and service home mortgages
under home financing programs authorized by this part and shall,
with respect to each home financing program, permit each qualified
lending institution that transacts business in the city or county the
opportunity to participate in the program on an equitable basis with
other participating lending institutions. Two or more cities in the
same county, a county and one or more cities within the county, or
two or more adjacent counties and any number of cities within those
counties may enter into an agreement to join or cooperate with one
another in the exercise jointly, or otherwise, of any or all of their
powers for the purpose of financing home mortgages pursuant to this
part with respect to property within the boundaries of any one or
more of the entities.
(2) To make loans to lending institutions under terms and
conditions that, in addition to other provisions as determined by the
city or county, require the lending institutions to use all of the
net proceeds thereof, directly or indirectly, for the making of home
mortgages in an aggregate principal amount equal to the amount of the
net proceeds.
(3) To establish, by rules or regulations, in resolutions relating
to any issuance of bonds, or in any documents relating to the
issuance, standards and requirements applicable to the purchase of
home mortgages or the making of loans to lending institutions as the
city or county deems necessary or desirable to effectuate the
purposes of this part, which may include without limitation any of
the following:
(A) The time within which lending institutions are required to
make commitments and disbursements for home mortgages.
(B) The location and other characteristics of homes to be financed
by home mortgages.
(C) The terms and conditions of home mortgages to be acquired.
(D) The amounts and types of any insurance coverage required on
homes, home mortgages, and bonds.
(E) The representations and warranties of lending institutions
confirming compliance with the standards and requirements.
(F) Restrictions as to interest rate and other terms of home
mortgages or the return realized therefrom by lending institutions.
(G) The type and amount of collateral security to be provided to
assure repayment of any loans from the city or county and to assure
repayment of bonds.
(H) Any other matters related to the purchase of home mortgages or
the making of loans to lending institutions as deemed relevant by
the city or county.
(4) To require from each lending institution from which home
mortgages are purchased or to which loans are made the submission of
evidence satisfactory to the city or county of the ability and
intention of the lending institution to make home mortgages, and the
submission, within the time specified by the city or county for
making disbursements for home mortgages, of evidence satisfactory to
the city or county of the making of home mortgages and of compliance
with any standards and requirements established by it.
(b) Each city or county that finances housing pursuant to this
part shall designate a person or entity to administer the program.
(c) Each city or county that finances housing pursuant to this
part shall adopt regulations establishing criteria for qualification
of persons and families, which may differ among different cities or
counties to reflect varying economic and housing conditions. In
developing these criteria, factors similar to the following shall be
taken into consideration:
(1) The amount of the income of the person or family that is
available for housing needs.
(2) The size of the household.
(3) The costs and condition of available housing.
(4) The eligibility of the persons or families for federal housing
assistance of any type.
(d) (1) Criteria for qualification of persons and families
pursuant to this section shall include a maximum household income,
which maximum shall not exceed the following:
(A) One hundred twenty percent of the median household income for
mortgages made for improving a home or for homes where the purchaser
will be the first occupant. Upon the resale of a home for which
financing was originally provided under this paragraph, the maximum
income of persons and families also shall be 120 percent of the
median household income.
(B) One hundred twenty percent of the median household income for
mortgages where the purchaser will not be the first occupant.
However, the city or county shall ensure that no less than 50 percent
of the funds allocated for home mortgages where the purchaser will
not be the first occupant shall be for households whose income does
not exceed 80 percent of that median household income. However, the
legislative body of the city or county may, by resolution, increase
this income limitation to 90 percent of median household income if
the legislative body finds that there are insufficient numbers of
creditworthy persons whose income does not exceed 80 percent of
median household income. The resolution is final and conclusive as to
the findings required by this paragraph.
(C) One hundred fifty percent of the median household income for
mortgages made for improving a home or for homes where the purchaser
will be the first occupant in any city, the entire area of which, or
in any county in which a portion of the county, is designated by the
United States Department of Commerce, Economic Development
Administration as a special impact area within a Title IV
redevelopment area, pursuant to Section 401 of the federal Public
Works and Economic Development Act of 1965, as amended, and that is
eligible for Urban Development Action Grant funds under the current
distress standards established for cities and counties by the
Secretary of the United States Department of Housing and Urban
Development pursuant to Section 119 of the Housing and Community
Development Act of 1974, if the homes purchased or improved are
situated within the boundaries of a special impact area as defined by
the Economic Development Administration, and that designation is in
effect on the date of sale of revenue bonds issued under this part.
(2) As used in this subdivision, "median household income" means
the highest of (A) statewide median household income, (B) countywide
median household income, or (C) median family income for an area, as
determined by the United States Department of Housing and Urban
Development, with respect to either a standard metropolitan
statistical area or an area outside of a standard metropolitan
statistical area.
(e) (1) Subdivision (d) shall not apply with respect to home
finance programs funded with amounts made available by the issuance
of revenue bonds that, for federal tax law purposes, are bonds
refunding qualified mortgage bonds issued before January 1, 1987, and
that satisfy the requirements of subdivision (a) of Section 1313 of
the federal Tax Reform Act of 1986. With respect to these programs,
the maximum household income for qualification of persons and
families pursuant to this section shall be the following:
(A) One hundred fifty percent of the median household income for
mortgages made for improving a home or for homes where the purchaser
will be the first occupant. Upon the resale of a home for which
financing was originally provided under this paragraph, the maximum
income of persons and families also shall be 150 percent of the
median household income. For purposes of this paragraph, a mortgage
made for improving a home includes a home improvement loan as defined
in Section 143 of Title 26 of the United States Code.
(B) One hundred twenty percent of the median household income
where the purchaser will not be the first occupant. However, the city
or county shall ensure that no less than 20 percent of the funds
allocated for home mortgages where the purchaser will not be the
first occupant shall be for households whose income does not exceed
110 percent of that median household income. However, the legislative
body of the city or county may, by resolution, increase this income
limitation to 120 percent of the median household income if the
legislative body finds that there are insufficient numbers of
creditworthy persons whose income does not exceed 110 percent of the
median household income. The resolution is final and conclusive as to
the findings required by this paragraph. However, the finding shall
not be made by the legislative body before six months from the date
mortgages were first made under the program and only if participating
lenders have entered into an agreement with the city, county, or
city and county that lenders will advertise at least monthly the
availability of funds and will forfeit one-quarter of their
origination fees if they are unable to use 20 percent of the funds to
make mortgages to households whose income does not exceed 110
percent of the median income.
(C) One hundred fifty percent of the median household income for
mortgages made for improving a home or for homes where the purchaser
will be the first occupant in any city, the entire area of which, or
in any county in which a portion of the county, is designated by the
United States Department of Commerce, Economic Development
Administration as a special impact area within a Title IV
redevelopment area, pursuant to Section 401 of the federal Public
Works and Economic Development Act of 1965, as amended, and that is
eligible for Urban Development Action Grant funds under the current
distress standards established for cities and counties by the
Secretary of the United States Department of Housing and Urban
Development pursuant to Section 119 of the Housing and Community
Development Act of 1974, if the homes purchased or improved are
situated within the boundaries of a special impact area as defined by
the Economic Development Administration, and that designation is in
effect on the date of sale of revenue bonds issued under this part.
(2) As used in this subdivision, "median household income" means
the highest of (A) statewide median household income, (B) countywide
median household income, or (C) median family income for an area, as
determined by the United States Department of Housing and Urban
Development, with respect to either a standard metropolitan
statistical area or an area outside of a standard metropolitan
statistical area.
(f) Each city or county that finances housing pursuant to this
part shall require each mortgagor under the program to certify his or
her intention to occupy the home for a minimum of two years after
receiving a home mortgage, with appropriate exceptions in hardship
cases determined by the city or county.
(g) Each city and county may do any and all things necessary to
carry out the purposes and exercise the powers expressly granted by
this part.
(h) This section shall become operative January 1, 2012.
52020.5. (a) For purposes of a home financing program authorized by
this part, the City of Gardena has the following powers and duties:
(1) To acquire, contract, and enter into advance commitments to
acquire, home mortgages made or owned by lending institutions at the
purchase prices and upon the other terms and conditions as shall be
determined by the City of Gardena or other person as it may designate
as its agent, to make and execute contracts with lending
institutions for the origination and servicing of home mortgages and
to pay the reasonable value of services rendered under those
contracts. Prior to executing any contract with a lending
institution, the City of Gardena shall adopt regulations establishing
criteria for qualification of lending institutions eligible to
originate and service home mortgages under home financing programs
authorized by this part and shall, with respect to each home
financing program, permit each qualified lending institution which
transacts business in the City of Gardena the opportunity to
participate in the program on an equitable basis with other
participating lending institutions.
(2) To make loans to lending institutions under terms and
conditions which, in addition to other provisions as determined by
the City of Gardena, require the lending institutions to use all of
the net proceeds thereof, directly or indirectly, for the making of
home mortgages in an aggregate principal amount equal to the amount
of the net proceeds.
(3) To establish, by rules or regulations, in resolutions relating
to any issuance of bonds or in any documents relating to the
issuance, standards and requirements applicable to the purchase of
home mortgages or the making of loans to lending institutions as the
City of Gardena deems necessary or desirable to effectuate the
purposes of this part, which may include without limitation any of
the following:
(A) The time within which lending institutions are required to
make commitments and disbursements for home mortgages.
(B) The location and other characteristics of homes to be financed
by home mortgages.
(C) The terms and conditions of home mortgages to be acquired.
(D) The amounts and types of any insurance coverage required on
homes, home mortgages and bonds.
(E) The representations and warranties of lending institutions
confirming compliance with the standards and requirements.
(F) Restrictions as to interest rate and other terms of home
mortgages or the return realized therefrom by lending institutions.
(G) The type and amount of collateral security to be provided to
assure repayment of any loans from the City of Gardena and to assure
repayment of bonds.
(H) Any other matters related to the purchase of home mortgages or
the making of loans to lending institutions as deemed relevant by
the City of Gardena.
(4) To require from each lending institution from which home
mortgages are purchased or to which loans are made the submission of
evidence satisfactory to the City of Gardena of the ability and
intention of the lending institution to make home mortgages, and the
submission, within the time specified by the City of Gardena for
making disbursements for home mortgages, of evidence satisfactory to
the City of Gardena of the making of home mortgages and of compliance
with any standards and requirements established by it.
(b) The City of Gardena shall designate a person or entity to
administer the program.
(c) The City of Gardena shall adopt regulations establishing
criteria for qualifications of persons and families. In developing
this criteria, factors similar to the following shall be taken into
consideration:
(1) The amount of the income of the person or family that is
available for housing needs.
(2) The size of the household.
(3) The costs and condition of available housing.
(4) The eligibility of the persons or families for federal housing
assistance of any type.
(5) That first-time homebuyers eligible to be assisted under this
section be California residents whose annual gross income does not
exceed 35 percent of the median area purchase price of a resale house
as determined by the City of Gardena.
(6) The purchase price of homes eligible to be assisted does not
exceed 100 percent of the median area purchase price of resale homes.
(d) Criteria for qualification of persons and families pursuant to
this section shall include a maximum household income, which maximum
shall not exceed the following:
(1) One hundred twenty percent of the median household income for
mortgages made for improving a home or for homes where the purchaser
will be the first occupant. Upon the resale of a home for which
financing was originally provided under this paragraph, the maximum
income of persons and families shall also be 120 percent of the
median household income.
(2) The median household income where the purchaser will not be
the first occupant. However, the City of Gardena shall ensure that no
less than 50 percent of the funds allocated for home mortgages where
the purchaser will not be the first occupant shall be for households
whose income does not exceed 80 percent of that median household
income. However, the legislative body of the City of Gardena may, by
resolution, increase this income limitation to 90 percent of median
household income if the legislative body finds that there are
insufficient numbers of creditworthy persons whose income does not
exceed 80 percent of median household income. The resolution is final
and conclusive as to the findings required by this paragraph.
(3) One hundred fifty percent of the median household income for
mortgages made for improving a home or for homes where the purchaser
will be the first occupant in the City of Gardena if that city
designated by the United States Department of Commerce, Economic
Development Administration as a special impact area within a Title IV
redevelopment area, pursuant to Section 401 of the federal Public
Works and Economic Development Act of 1965, as amended, and which is
eligible for Urban Development Action Grant funds under the current
distress standards established for cities by the Secretary of the
United States Department of Housing and Urban Development pursuant to
Section 119 of the Housing and Community Development Act of 1974, if
the homes purchased or improved are situated within the boundaries
of a special impact area as defined by the Economic Development
Administration, and that designation is in effect on the date of sale
of revenue bonds issued under this part.
As used in this subdivision, "median household income" means the
highest of (A) statewide median household income, (B) countywide
median household income, or (C) median family income for area as
determined by the United States Department of Housing and Urban
Development, with respect to either a standard metropolitan
statistical area or an area outside of a standard metropolitan
statistical area.
(e) Subdivision (d) shall not apply with respect to home finance
programs funded with amounts made available by the issuance of
revenue bonds that (1) for federal tax law purposes are bonds
refunding qualified mortgage bonds issued before January 1, 1987, and
(2) satisfy the requirements of subdivision (a) of Section 1313 of
the federal Tax Reform Act of 1986. With respect to these programs,
the maximum household income for qualification of persons and
families pursuant to this section shall be the following:
(1) One hundred fifty percent of the median household income for
mortgages made for improving a home or for homes where the purchaser
will be the first occupant. Upon the resale of a home for which
financing was originally provided under this paragraph, the maximum
income of persons and families shall also be 150 percent of the
median household income. For purposes of this paragraph, a mortgage
made for improving a home includes a home improvement loan as defined
in Section 143 of Title 26 of the United States Code.
(2) One hundred twenty percent of the median household income
where the purchaser will not be the first occupant. However, the City
of Gardena shall ensure that no less than 20 percent of the funds
allocated for home mortgages where the purchaser will not be the
first occupant shall be for households whose income does not exceed
110 percent of that median household income. However, the legislative
body of the city or county may, by resolution, increase this income
limitation to 120 percent of the median household income if the
legislative body finds that there are insufficient numbers of
creditworthy persons whose income does not exceed 110 percent of the
median household income. The resolution is final and conclusive as to
the findings required by this paragraph. However, the finding shall
not be made by the legislative body before six months from the date
mortgages were first made under the program and only if participating
lenders have entered into an agreement with the City of Gardena that
lenders will advertise at least monthly the availability of funds
and will forfeit one-quarter of their origination fees if they are
unable to use 20 percent of the funds to make mortgages to households
whose income does not exceed 110 percent of the median income.
(3) One hundred fifty percent of the median household income for
mortgages made for improving a home or for homes where the purchaser
will be the first occupant in the City of Gardena if that city is
designated by the United States Department of Commerce, Economic
Development Administration as a special impact area within a Title IV
redevelopment area, pursuant to Section 401 of the federal Public
Works and Economic Development Act of 1965, as amended, and which is
eligible for Urban Development Action Grant funds under the current
distress standards established for cities by the Secretary of the
United States Department of Housing and Urban Development pursuant to
Section 119 of the Housing and Community Development Act of 1974, if
the homes purchased or improved are situated within the boundaries
of a special impact area as defined by the Economic Development
Administration, and that designation is in effect on the date of sale
of revenue bonds issued under this part.
As used in this subdivision, "median household income" means the
highest of (1) statewide median household income, (2) countywide
median household income, or (3) median family income for the area as
determined by the United States Department of Housing and Urban
Development, with respect to either a standard metropolitan
statistical area or an area outside of a standard metropolitan
statistical area.
(f) (1) Except as otherwise provided in paragraphs (2) and (3),
the City of Gardena shall allocate no less than 60 percent of the
dollar amount of its financing from bond proceeds to fund loans for
the purchase of homes where the purchaser will be the first occupant,
or for substantial rehabilitation. As used in this chapter,
"substantial rehabilitation" means rehabilitation in which the costs
of rehabilitation equal or exceed 20 percent of the value of the
structure after rehabilitation.
(2) Paragraph (1) does not apply to an issue of bonds for which
all of the proceeds of the bond issuance are allocated to fund loans
for home improvement or substantial rehabilitation.
(3) Paragraph (1) shall not apply to that portion of the proceeds
of any bonds issued to finance home mortgages for first-time
homebuyers.
(g) The City of Gardena shall require each mortgagor under the
program to certify his or her intention to occupy the home for a
minimum of two years after receiving a home mortgage, with
appropriate exceptions in hardship cases determined by the City of
Gardena.
(h) The City of Gardena may do any and all things necessary to
carry out the purposes and exercise the powers expressly granted by
this part.
52021. A home financing program authorized by this part shall not
be implemented unless the program complies with the land use element
and the housing element which is required to be included in the
general plan of the city or county by Section 65302 of the Government
Code.
52022. Notwithstanding Section 711 of the Civil Code, any
indebtedness incurred pursuant to a mortgage financed under the terms
of this part shall be subject to acceleration and the balance owing
declared immediately due and payable upon the sale of the home to a
purchaser who does not meet the required qualifications for borrowers
of subdivision (f) of Section 52020 or any more stringent
qualifications as the city or county may require.
52023. In providing financing for home mortgages pursuant to this
part, a lending institution shall incur no liability in any part
based on any policy or procedure which has been adopted by the city
or county unless it is contained in the contract between the lending
institution and the city or county, its officers, agents or trustees.
52020. (a) For purposes of a home financing program authorized by
this part, a city or county has the following powers and duties:
(1) To acquire, contract, and enter into advance commitments to
acquire home mortgages made or owned by lending institutions at the
purchase prices and upon the other terms and conditions as shall be
determined by the city or county or other person as it may designate
as its agent, to make and execute contracts with lending institutions
for the origination and servicing of home mortgages, and to pay the
reasonable value of services rendered under those contracts. Prior to
executing any contract with a lending institution, a city or county
shall adopt regulations establishing criteria for qualification of
lending institutions eligible to originate and service home mortgages
under home financing programs authorized by this part and shall,
with respect to each home financing program, permit each qualified
lending institution that transacts business in the city or county the
opportunity to participate in the program on an equitable basis with
other participating lending institutions. Two or more cities in the
same county, a county and one or more cities within the county, or
two or more adjacent counties and any number of cities within those
counties may enter into an agreement to join or cooperate with one
another in the exercise jointly, or otherwise, of any or all of their
powers for the purpose of financing home mortgages pursuant to this
part with respect to property within the boundaries of any one or
more of the entities.
(2) To make loans to lending institutions under terms and
conditions that, in addition to other provisions as determined by the
city or county, require the lending institutions to use all of the
net proceeds thereof, directly or indirectly, for the making of home
mortgages in an aggregate principal amount equal to the amount of the
net proceeds.
(3) To establish, by rules or regulations, in resolutions relating
to any issuance of bonds, or in any documents relating to the
issuance, standards and requirements applicable to the purchase of
home mortgages or the making of loans to lending institutions as the
city or county deems necessary or desirable to effectuate the
purposes of this part, which may include without limitation any of
the following:
(A) The time within which lending institutions are required to
make commitments and disbursements for home mortgages.
(B) The location and other characteristics of homes to be financed
by home mortgages.
(C) The terms and conditions of home mortgages to be acquired.
(D) The amounts and types of any insurance coverage required on
homes, home mortgages, and bonds.
(E) The representations and warranties of lending institutions
confirming compliance with the standards and requirements.
(F) Restrictions as to interest rate and other terms of home
mortgages or the return realized therefrom by lending institutions.
(G) The type and amount of collateral security to be provided to
assure repayment of any loans from the city or county and to assure
repayment of bonds.
(H) Any other matters related to the purchase of home mortgages or
the making of loans to lending institutions as deemed relevant by
the city or county.
(4) To require from each lending institution from which home
mortgages are purchased or to which loans are made the submission of
evidence satisfactory to the city or county of the ability and
intention of the lending institution to make home mortgages, and the
submission, within the time specified by the city or county for
making disbursements for home mortgages, of evidence satisfactory to
the city or county of the making of home mortgages and of compliance
with any standards and requirements established by it.
(b) Each city or county that finances housing pursuant to this
part shall designate a person or entity to administer the program.
(c) Each city or county that finances housing pursuant to this
part shall adopt regulations establishing criteria for qualification
of persons and families, which may differ among different cities or
counties to reflect varying economic and housing conditions. In
developing these criteria, factors similar to the following shall be
taken into consideration:
(1) The amount of the income of the person or family that is
available for housing needs.
(2) The size of the household.
(3) The costs and condition of available housing.
(4) The eligibility of the persons or families for federal housing
assistance of any type.
(d) (1) Criteria for qualification of persons and families
pursuant to this section shall include a maximum household income,
which maximum shall not exceed the following:
(A) One hundred twenty percent of the median household income for
mortgages made for improving a home, for refinancing a home, or for
homes where the purchaser will be the first occupant. Upon the resale
of a home for which financing was originally provided under this
paragraph, the maximum income of persons and families also shall be
120 percent of the median household income.
(B) One hundred twenty percent of the median household income for
mortgages where the purchaser will not be the first occupant.
However, the city or county shall ensure that no less than 50 percent
of the funds allocated for home mortgages where the purchaser will
not be the first occupant shall be for households whose income does
not exceed 80 percent of that median household income. However, the
legislative body of the city or county may, by resolution, increase
this income limitation to 90 percent of median household income if
the legislative body finds that there are insufficient numbers of
creditworthy persons whose income does not exceed 80 percent of
median household income. The resolution is final and conclusive as to
the findings required by this paragraph.
(C) One hundred fifty percent of the median household income for
mortgages made for improving a home, for refinancing a home, or for
homes where the purchaser will be the first occupant in any city, the
entire area of which, or in any county in which a portion of the
county, is designated by the United States Department of Commerce,
Economic Development Administration as a special impact area within a
Title IV redevelopment area, pursuant to Section 401 of the federal
Public Works and Economic Development Act of 1965, as amended, and
that is eligible for Urban Development Action Grant funds under the
current distress standards established for cities and counties by the
Secretary of the United States Department of Housing and Urban
Development pursuant to Section 119 of the Housing and Community
Development Act of 1974, if the homes purchased, refinanced, or
improved are situated within the boundaries of a special impact area
as defined by the Economic Development Administration, and that
designation is in effect on the date of sale of revenue bonds issued
under this part.
(2) As used in this subdivision, "median household income" means
the highest of (A) statewide median household income, (B) countywide
median household income, or (C) median family income for an area, as
determined by the United States Department of Housing and Urban
Development, with respect to either a standard metropolitan
statistical area or an area outside of a standard metropolitan
statistical area.
(e) (1) Subdivision (d) shall not apply with respect to home
finance programs funded with amounts made available by the issuance
of revenue bonds that, for federal tax law purposes, are bonds
refunding qualified mortgage bonds issued before January 1, 1987, and
that satisfy the requirements of subdivision (a) of Section 1313 of
the federal Tax Reform Act of 1986. With respect to these programs,
the maximum household income for qualification of persons and
families pursuant to this section shall be the following:
(A) One hundred fifty percent of the median household income for
mortgages made for improving a home or for homes where the purchaser
will be the first occupant. Upon the resale of a home for which
financing was originally provided under this paragraph, the maximum
income of persons and families also shall be 150 percent of the
median household income. For purposes of this paragraph, a mortgage
made for improving a home includes a home improvement loan as defined
in Section 143 of Title 26 of the United States Code.
(B) One hundred twenty percent of the median household income
where the purchaser will not be the first occupant. However, the city
or county shall ensure that no less than 20 percent of the funds
allocated for home mortgages where the purchaser will not be the
first occupant shall be for households whose income does not exceed
110 percent of that median household income. However, the legislative
body of the city or county may, by resolution, increase this income
limitation to 120 percent of the median household income if the
legislative body finds that there are insufficient numbers of
creditworthy persons whose income does not exceed 110 percent of the
median household income. The resolution is final and conclusive as to
the findings required by this paragraph. However, the finding shall
not be made by the legislative body before six months from the date
mortgages were first made under the program and only if participating
lenders have entered into an agreement with the city, county, or
city and county that lenders will advertise at least monthly the
availability of funds and will forfeit one-quarter of their
origination fees if they are unable to use 20 percent of the funds to
make mortgages to households whose income does not exceed 110
percent of the median income.
(C) One hundred fifty percent of the median household income for
mortgages made for improving a home or for homes where the purchaser
will be the first occupant in any city, the entire area of which, or
in any county in which a portion of the county, is designated by the
United States Department of Commerce, Economic Development
Administration as a special impact area within a Title IV
redevelopment area, pursuant to Section 401 of the federal Public
Works and Economic Development Act of 1965, as amended, and that is
eligible for Urban Development Action Grant funds under the current
distress standards established for cities and counties by the
Secretary of the United States Department of Housing and Urban
Development pursuant to Section 119 of the Housing and Community
Development Act of 1974, if the homes purchased or improved are
situated within the boundaries of a special impact area as defined by
the Economic Development Administration, and that designation is in
effect on the date of sale of revenue bonds issued under this part.
(2) As used in this subdivision, "median household income" means
the highest of (A) statewide median household income, (B) countywide
median household income, or (C) median family income for an area, as
determined by the United States Department of Housing and Urban
Development, with respect to either a standard metropolitan
statistical area or an area outside of a standard metropolitan
statistical area.
(f) Each city or county that finances housing pursuant to this
part shall require each mortgagor under the program to certify his or
her intention to occupy the home for a minimum of two years after
receiving a home mortgage, with appropriate exceptions in hardship
cases determined by the city or county.
(g) Each city and county may do any and all things necessary to
carry out the purposes and exercise the powers expressly granted by
this part.
(h) This section shall remain in effect only until January 1,
2012, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2012, deletes or extends
that date.
52020. (a) For purposes of a home financing program authorized by
this part, a city or county has the following powers and duties:
(1) To acquire, contract, and enter into advance commitments to
acquire home mortgages made or owned by lending institutions at the
purchase prices and upon the other terms and conditions as shall be
determined by the city or county or other person as it may designate
as its agent, to make and execute contracts with lending institutions
for the origination and servicing of home mortgages, and to pay the
reasonable value of services rendered under those contracts. Prior to
executing any contract with a lending institution, a city or county
shall adopt regulations establishing criteria for qualification of
lending institutions eligible to originate and service home mortgages
under home financing programs authorized by this part and shall,
with respect to each home financing program, permit each qualified
lending institution that transacts business in the city or county the
opportunity to participate in the program on an equitable basis with
other participating lending institutions. Two or more cities in the
same county, a county and one or more cities within the county, or
two or more adjacent counties and any number of cities within those
counties may enter into an agreement to join or cooperate with one
another in the exercise jointly, or otherwise, of any or all of their
powers for the purpose of financing home mortgages pursuant to this
part with respect to property within the boundaries of any one or
more of the entities.
(2) To make loans to lending institutions under terms and
conditions that, in addition to other provisions as determined by the
city or county, require the lending institutions to use all of the
net proceeds thereof, directly or indirectly, for the making of home
mortgages in an aggregate principal amount equal to the amount of the
net proceeds.
(3) To establish, by rules or regulations, in resolutions relating
to any issuance of bonds, or in any documents relating to the
issuance, standards and requirements applicable to the purchase of
home mortgages or the making of loans to lending institutions as the
city or county deems necessary or desirable to effectuate the
purposes of this part, which may include without limitation any of
the following:
(A) The time within which lending institutions are required to
make commitments and disbursements for home mortgages.
(B) The location and other characteristics of homes to be financed
by home mortgages.
(C) The terms and conditions of home mortgages to be acquired.
(D) The amounts and types of any insurance coverage required on
homes, home mortgages, and bonds.
(E) The representations and warranties of lending institutions
confirming compliance with the standards and requirements.
(F) Restrictions as to interest rate and other terms of home
mortgages or the return realized therefrom by lending institutions.
(G) The type and amount of collateral security to be provided to
assure repayment of any loans from the city or county and to assure
repayment of bonds.
(H) Any other matters related to the purchase of home mortgages or
the making of loans to lending institutions as deemed relevant by
the city or county.
(4) To require from each lending institution from which home
mortgages are purchased or to which loans are made the submission of
evidence satisfactory to the city or county of the ability and
intention of the lending institution to make home mortgages, and the
submission, within the time specified by the city or county for
making disbursements for home mortgages, of evidence satisfactory to
the city or county of the making of home mortgages and of compliance
with any standards and requirements established by it.
(b) Each city or county that finances housing pursuant to this
part shall designate a person or entity to administer the program.
(c) Each city or county that finances housing pursuant to this
part shall adopt regulations establishing criteria for qualification
of persons and families, which may differ among different cities or
counties to reflect varying economic and housing conditions. In
developing these criteria, factors similar to the following shall be
taken into consideration:
(1) The amount of the income of the person or family that is
available for housing needs.
(2) The size of the household.
(3) The costs and condition of available housing.
(4) The eligibility of the persons or families for federal housing
assistance of any type.
(d) (1) Criteria for qualification of persons and families
pursuant to this section shall include a maximum household income,
which maximum shall not exceed the following:
(A) One hundred twenty percent of the median household income for
mortgages made for improving a home or for homes where the purchaser
will be the first occupant. Upon the resale of a home for which
financing was originally provided under this paragraph, the maximum
income of persons and families also shall be 120 percent of the
median household income.
(B) One hundred twenty percent of the median household income for
mortgages where the purchaser will not be the first occupant.
However, the city or county shall ensure that no less than 50 percent
of the funds allocated for home mortgages where the purchaser will
not be the first occupant shall be for households whose income does
not exceed 80 percent of that median household income. However, the
legislative body of the city or county may, by resolution, increase
this income limitation to 90 percent of median household income if
the legislative body finds that there are insufficient numbers of
creditworthy persons whose income does not exceed 80 percent of
median household income. The resolution is final and conclusive as to
the findings required by this paragraph.
(C) One hundred fifty percent of the median household income for
mortgages made for improving a home or for homes where the purchaser
will be the first occupant in any city, the entire area of which, or
in any county in which a portion of the county, is designated by the
United States Department of Commerce, Economic Development
Administration as a special impact area within a Title IV
redevelopment area, pursuant to Section 401 of the federal Public
Works and Economic Development Act of 1965, as amended, and that is
eligible for Urban Development Action Grant funds under the current
distress standards established for cities and counties by the
Secretary of the United States Department of Housing and Urban
Development pursuant to Section 119 of the Housing and Community
Development Act of 1974, if the homes purchased or improved are
situated within the boundaries of a special impact area as defined by
the Economic Development Administration, and that designation is in
effect on the date of sale of revenue bonds issued under this part.
(2) As used in this subdivision, "median household income" means
the highest of (A) statewide median household income, (B) countywide
median household income, or (C) median family income for an area, as
determined by the United States Department of Housing and Urban
Development, with respect to either a standard metropolitan
statistical area or an area outside of a standard metropolitan
statistical area.
(e) (1) Subdivision (d) shall not apply with respect to home
finance programs funded with amounts made available by the issuance
of revenue bonds that, for federal tax law purposes, are bonds
refunding qualified mortgage bonds issued before January 1, 1987, and
that satisfy the requirements of subdivision (a) of Section 1313 of
the federal Tax Reform Act of 1986. With respect to these programs,
the maximum household income for qualification of persons and
families pursuant to this section shall be the following:
(A) One hundred fifty percent of the median household income for
mortgages made for improving a home or for homes where the purchaser
will be the first occupant. Upon the resale of a home for which
financing was originally provided under this paragraph, the maximum
income of persons and families also shall be 150 percent of the
median household income. For purposes of this paragraph, a mortgage
made for improving a home includes a home improvement loan as defined
in Section 143 of Title 26 of the United States Code.
(B) One hundred twenty percent of the median household income
where the purchaser will not be the first occupant. However, the city
or county shall ensure that no less than 20 percent of the funds
allocated for home mortgages where the purchaser will not be the
first occupant shall be for households whose income does not exceed
110 percent of that median household income. However, the legislative
body of the city or county may, by resolution, increase this income
limitation to 120 percent of the median household income if the
legislative body finds that there are insufficient numbers of
creditworthy persons whose income does not exceed 110 percent of the
median household income. The resolution is final and conclusive as to
the findings required by this paragraph. However, the finding shall
not be made by the legislative body before six months from the date
mortgages were first made under the program and only if participating
lenders have entered into an agreement with the city, county, or
city and county that lenders will advertise at least monthly the
availability of funds and will forfeit one-quarter of their
origination fees if they are unable to use 20 percent of the funds to
make mortgages to households whose income does not exceed 110
percent of the median income.
(C) One hundred fifty percent of the median household income for
mortgages made for improving a home or for homes where the purchaser
will be the first occupant in any city, the entire area of which, or
in any county in which a portion of the county, is designated by the
United States Department of Commerce, Economic Development
Administration as a special impact area within a Title IV
redevelopment area, pursuant to Section 401 of the federal Public
Works and Economic Development Act of 1965, as amended, and that is
eligible for Urban Development Action Grant funds under the current
distress standards established for cities and counties by the
Secretary of the United States Department of Housing and Urban
Development pursuant to Section 119 of the Housing and Community
Development Act of 1974, if the homes purchased or improved are
situated within the boundaries of a special impact area as defined by
the Economic Development Administration, and that designation is in
effect on the date of sale of revenue bonds issued under this part.
(2) As used in this subdivision, "median household income" means
the highest of (A) statewide median household income, (B) countywide
median household income, or (C) median family income for an area, as
determined by the United States Department of Housing and Urban
Development, with respect to either a standard metropolitan
statistical area or an area outside of a standard metropolitan
statistical area.
(f) Each city or county that finances housing pursuant to this
part shall require each mortgagor under the program to certify his or
her intention to occupy the home for a minimum of two years after
receiving a home mortgage, with appropriate exceptions in hardship
cases determined by the city or county.
(g) Each city and county may do any and all things necessary to
carry out the purposes and exercise the powers expressly granted by
this part.
(h) This section shall become operative January 1, 2012.
52020.5. (a) For purposes of a home financing program authorized by
this part, the City of Gardena has the following powers and duties:
(1) To acquire, contract, and enter into advance commitments to
acquire, home mortgages made or owned by lending institutions at the
purchase prices and upon the other terms and conditions as shall be
determined by the City of Gardena or other person as it may designate
as its agent, to make and execute contracts with lending
institutions for the origination and servicing of home mortgages and
to pay the reasonable value of services rendered under those
contracts. Prior to executing any contract with a lending
institution, the City of Gardena shall adopt regulations establishing
criteria for qualification of lending institutions eligible to
originate and service home mortgages under home financing programs
authorized by this part and shall, with respect to each home
financing program, permit each qualified lending institution which
transacts business in the City of Gardena the opportunity to
participate in the program on an equitable basis with other
participating lending institutions.
(2) To make loans to lending institutions under terms and
conditions which, in addition to other provisions as determined by
the City of Gardena, require the lending institutions to use all of
the net proceeds thereof, directly or indirectly, for the making of
home mortgages in an aggregate principal amount equal to the amount
of the net proceeds.
(3) To establish, by rules or regulations, in resolutions relating
to any issuance of bonds or in any documents relating to the
issuance, standards and requirements applicable to the purchase of
home mortgages or the making of loans to lending institutions as the
City of Gardena deems necessary or desirable to effectuate the
purposes of this part, which may include without limitation any of
the following:
(A) The time within which lending institutions are required to
make commitments and disbursements for home mortgages.
(B) The location and other characteristics of homes to be financed
by home mortgages.
(C) The terms and conditions of home mortgages to be acquired.
(D) The amounts and types of any insurance coverage required on
homes, home mortgages and bonds.
(E) The representations and warranties of lending institutions
confirming compliance with the standards and requirements.
(F) Restrictions as to interest rate and other terms of home
mortgages or the return realized therefrom by lending institutions.
(G) The type and amount of collateral security to be provided to
assure repayment of any loans from the City of Gardena and to assure
repayment of bonds.
(H) Any other matters related to the purchase of home mortgages or
the making of loans to lending institutions as deemed relevant by
the City of Gardena.
(4) To require from each lending institution from which home
mortgages are purchased or to which loans are made the submission of
evidence satisfactory to the City of Gardena of the ability and
intention of the lending institution to make home mortgages, and the
submission, within the time specified by the City of Gardena for
making disbursements for home mortgages, of evidence satisfactory to
the City of Gardena of the making of home mortgages and of compliance
with any standards and requirements established by it.
(b) The City of Gardena shall designate a person or entity to
administer the program.
(c) The City of Gardena shall adopt regulations establishing
criteria for qualifications of persons and families. In developing
this criteria, factors similar to the following shall be taken into
consideration:
(1) The amount of the income of the person or family that is
available for housing needs.
(2) The size of the household.
(3) The costs and condition of available housing.
(4) The eligibility of the persons or families for federal housing
assistance of any type.
(5) That first-time homebuyers eligible to be assisted under this
section be California residents whose annual gross income does not
exceed 35 percent of the median area purchase price of a resale house
as determined by the City of Gardena.
(6) The purchase price of homes eligible to be assisted does not
exceed 100 percent of the median area purchase price of resale homes.
(d) Criteria for qualification of persons and families pursuant to
this section shall include a maximum household income, which maximum
shall not exceed the following:
(1) One hundred twenty percent of the median household income for
mortgages made for improving a home or for homes where the purchaser
will be the first occupant. Upon the resale of a home for which
financing was originally provided under this paragraph, the maximum
income of persons and families shall also be 120 percent of the
median household income.
(2) The median household income where the purchaser will not be
the first occupant. However, the City of Gardena shall ensure that no
less than 50 percent of the funds allocated for home mortgages where
the purchaser will not be the first occupant shall be for households
whose income does not exceed 80 percent of that median household
income. However, the legislative body of the City of Gardena may, by
resolution, increase this income limitation to 90 percent of median
household income if the legislative body finds that there are
insufficient numbers of creditworthy persons whose income does not
exceed 80 percent of median household income. The resolution is final
and conclusive as to the findings required by this paragraph.
(3) One hundred fifty percent of the median household income for
mortgages made for improving a home or for homes where the purchaser
will be the first occupant in the City of Gardena if that city
designated by the United States Department of Commerce, Economic
Development Administration as a special impact area within a Title IV
redevelopment area, pursuant to Section 401 of the federal Public
Works and Economic Development Act of 1965, as amended, and which is
eligible for Urban Development Action Grant funds under the current
distress standards established for cities by the Secretary of the
United States Department of Housing and Urban Development pursuant to
Section 119 of the Housing and Community Development Act of 1974, if
the homes purchased or improved are situated within the boundaries
of a special impact area as defined by the Economic Development
Administration, and that designation is in effect on the date of sale
of revenue bonds issued under this part.
As used in this subdivision, "median household income" means the
highest of (A) statewide median household income, (B) countywide
median household income, or (C) median family income for area as
determined by the United States Department of Housing and Urban
Development, with respect to either a standard metropolitan
statistical area or an area outside of a standard metropolitan
statistical area.
(e) Subdivision (d) shall not apply with respect to home finance
programs funded with amounts made available by the issuance of
revenue bonds that (1) for federal tax law purposes are bonds
refunding qualified mortgage bonds issued before January 1, 1987, and
(2) satisfy the requirements of subdivision (a) of Section 1313 of
the federal Tax Reform Act of 1986. With respect to these programs,
the maximum household income for qualification of persons and
families pursuant to this section shall be the following:
(1) One hundred fifty percent of the median household income for
mortgages made for improving a home or for homes where the purchaser
will be the first occupant. Upon the resale of a home for which
financing was originally provided under this paragraph, the maximum
income of persons and families shall also be 150 percent of the
median household income. For purposes of this paragraph, a mortgage
made for improving a home includes a home improvement loan as defined
in Section 143 of Title 26 of the United States Code.
(2) One hundred twenty percent of the median household income
where the purchaser will not be the first occupant. However, the City
of Gardena shall ensure that no less than 20 percent of the funds
allocated for home mortgages where the purchaser will not be the
first occupant shall be for households whose income does not exceed
110 percent of that median household income. However, the legislative
body of the city or county may, by resolution, increase this income
limitation to 120 percent of the median household income if the
legislative body finds that there are insufficient numbers of
creditworthy persons whose income does not exceed 110 percent of the
median household income. The resolution is final and conclusive as to
the findings required by this paragraph. However, the finding shall
not be made by the legislative body before six months from the date
mortgages were first made under the program and only if participating
lenders have entered into an agreement with the City of Gardena that
lenders will advertise at least monthly the availability of funds
and will forfeit one-quarter of their origination fees if they are
unable to use 20 percent of the funds to make mortgages to households
whose income does not exceed 110 percent of the median income.
(3) One hundred fifty percent of the median household income for
mortgages made for improving a home or for homes where the purchaser
will be the first occupant in the City of Gardena if that city is
designated by the United States Department of Commerce, Economic
Development Administration as a special impact area within a Title IV
redevelopment area, pursuant to Section 401 of the federal Public
Works and Economic Development Act of 1965, as amended, and which is
eligible for Urban Development Action Grant funds under the current
distress standards established for cities by the Secretary of the
United States Department of Housing and Urban Development pursuant to
Section 119 of the Housing and Community Development Act of 1974, if
the homes purchased or improved are situated within the boundaries
of a special impact area as defined by the Economic Development
Administration, and that designation is in effect on the date of sale
of revenue bonds issued under this part.
As used in this subdivision, "median household income" means the
highest of (1) statewide median household income, (2) countywide
median household income, or (3) median family income for the area as
determined by the United States Department of Housing and Urban
Development, with respect to either a standard metropolitan
statistical area or an area outside of a standard metropolitan
statistical area.
(f) (1) Except as otherwise provided in paragraphs (2) and (3),
the City of Gardena shall allocate no less than 60 percent of the
dollar amount of its financing from bond proceeds to fund loans for
the purchase of homes where the purchaser will be the first occupant,
or for substantial rehabilitation. As used in this chapter,
"substantial rehabilitation" means rehabilitation in which the costs
of rehabilitation equal or exceed 20 percent of the value of the
structure after rehabilitation.
(2) Paragraph (1) does not apply to an issue of bonds for which
all of the proceeds of the bond issuance are allocated to fund loans
for home improvement or substantial rehabilitation.
(3) Paragraph (1) shall not apply to that portion of the proceeds
of any bonds issued to finance home mortgages for first-time
homebuyers.
(g) The City of Gardena shall require each mortgagor under the
program to certify his or her intention to occupy the home for a
minimum of two years after receiving a home mortgage, with
appropriate exceptions in hardship cases determined by the City of
Gardena.
(h) The City of Gardena may do any and all things necessary to
carry out the purposes and exercise the powers expressly granted by
this part.
52021. A home financing program authorized by this part shall not
be implemented unless the program complies with the land use element
and the housing element which is required to be included in the
general plan of the city or county by Section 65302 of the Government
Code.
52022. Notwithstanding Section 711 of the Civil Code, any
indebtedness incurred pursuant to a mortgage financed under the terms
of this part shall be subject to acceleration and the balance owing
declared immediately due and payable upon the sale of the home to a
purchaser who does not meet the required qualifications for borrowers
of subdivision (f) of Section 52020 or any more stringent
qualifications as the city or county may require.
52023. In providing financing for home mortgages pursuant to this
part, a lending institution shall incur no liability in any part
based on any policy or procedure which has been adopted by the city
or county unless it is contained in the contract between the lending
institution and the city or county, its officers, agents or trustees.
