SECTIONS 52550-52552

52550.  (a) A nonprofit corporation may be formed to carry out thepurposes of this part. The corporation is not a state entity and theofficers and employees of the corporation are not officers oremployees of the state and shall not be subject to state civilservice. (b) Nothing in this chapter shall be construed to preclude anyperson from creating other corporations and organizing otherpartnerships, joint ventures, or associations for the purposes setforth in this part.52551.  (a) (1) The Governor shall appoint, subject to advice andconsent of the Senate, five of the incorporators of the corporationfrom the categories of persons described in paragraphs (1) to (5),inclusive, of subdivision (b). The Senate Rules Committee shallappoint one of the incorporators of the corporation from the categoryof persons described in paragraph (7) of subdivision (b), and theSpeaker of the Assembly shall appoint one of the incorporators of thecorporation from the category of persons described in paragraph (8)of subdivision (b). (2) The incorporators shall serve as the initial board ofdirectors of the corporation. The term of office of three of theincorporators shall be for three years, the term of office of two ofthe initial incorporators shall be for two years, and the term ofoffice of the remaining two initial incorporators shall be for oneyear, as determined by lot. The Governor shall appoint one of theeight incorporators to serve as the chairperson of the board ofdirectors. All subsequent appointments to the board of directors,including the appointment of the chairperson, shall be for three-yearterms and shall be made by the appointing power described in thissubdivision from the categories of persons described in subdivision(b). (b) The board of directors shall consist of eight memberscommitted to working with nonprofit developers to preserve and expandthe state's supply of low-income and very low income housing andexperienced in providing low-income and very low income housingthrough encouraging greater participation by private investors,nonprofit housing corporations, and local and state governments. Theboard of directors shall be appointed as specified in subdivision (a)from each of the following categories: (1) An elected or appointed official of a city or county withexperience in assisting nonprofit housing developers to providehousing for low-income and very low income households. (2) A person from the savings and loan, mortgage banking, orcommercial banking industry. (3) A person knowledgeable about tax, securities, and partnershiplaw as they relate to low-income or very low income housing. (4) A person experienced in developing and implementing plans forthe repair and rehabilitation of existing low-income or very lowincome housing. (5) A housing consultant experienced in developing andimplementing programs utilizing equity capital. (6) The Director of Housing and Community Development. (7) A person experienced in the management of rental orcooperative housing occupied by low-income or very low incomehouseholds. (8) A person from a nonprofit housing corporation experienced inworking with the private sector and public sector to help preserveexisting low-income or very low income housing. (c) The representation of varied interest groups on the board ofdirectors shall be deemed essential to obtain information for thedevelopment of policy and decisions of the board of directors. Itshall not be a conflict of interest for individuals from each of therespective categories designated in subdivision (b) to serve as amember of the board of directors. If any board member has a financialinterest, as described in Section 87103 of the Government Code, theinterest shall be disclosed as a matter of official public record andshall be described with particularity, as determined by the othermembers of the board of directors. No board member shall make,participate in making, or in anyway attempt to use his or herposition to influence, a decision of the board of directors in whichhe or she knows or has reason to know that he or she has a financialinterest. (d) Any violation of this section by a board member shallconstitute grounds for disqualification as a board member.52552.  The initial board of directors shall take whatever actionsare necessary or appropriate to establish the corporation, including,but not limited to, the filing of articles of incorporation.