52051. The provisions of Chapter 16 (commencing with Section 7260)
of Division 7 of Title 1 of the Government Code shall not apply to a
mortgagor of any home acquired by foreclosure, trust deed, sale or
other proceeding resulting from default on a home mortgage made by a
county or city or by a lending institution pursuant to this part.
52052. This part is necessary for the health, welfare and safety of
the state, its counties and cities and its inhabitants. Therefore,
it shall be liberally construed to effect its purposes.
52053. (a) Except as provided in subdivision (b), the powers
conferred by this part are in addition and supplemental to, and the
limitations imposed by this part shall not affect the powers
conferred by, any other law.
(b) The Legislature finds and declares that the market for
municipal home mortgage revenue bonds is limited and that, as a
matter of overriding state policy, issuances of such bonds should be
limited to financing housing for persons whose housing needs are
least satisfied by conventional mortgage financing and other
governmental home ownership assistance programs. This part contains
appropriate limitations with respect to mortgagor income and also
contains provisions which will assist in assuring that no bond
issuance under this part will result in any impairment of the public
credit in this state.
Therefore, this part shall be the exclusive authority for issuance
of revenue bonds by any city, including any charter city, county, or
city and county for the purpose of providing long-term mortgage
financing for the construction or acquisition of housing, excluding
multifamily rental housing and multifamily cooperative housing;
provided, that nothing in this subdivision shall supersede any other
provision of state law authorizing the provision of long-term
mortgage financing by any state agency or local public entity; and
provided further, that nothing in this subdivision shall affect, or
be in any way applicable to, revenue bonds issued (and loans made
with the proceeds thereof) by the Cities of San Bernardino, Burbank,
or Pasadena on or before July 1, 1980, the interest on which would be
excludable from the gross income of the recipients by reason of the
applicable laws of the United States and the regulations promulgated
thereunder in effect at the time such revenue bonds are issued, or by
any other charter city on or before February 1, 1980, the interest
on which would be excludable from the gross income of the recipients
by reason of Section 4(b) of the proposed Mortgage Subsidy Bond Tax
Act of 1979, as reported by the Committee on Ways and Means of the
United States House of Representatives on August 31, 1979.
Furthermore, nothing in this subdivision shall affect the authority
conferred upon a charter city by its charter to issue revenue bonds
to undertake a program of long-term mortgage financing of multifamily
rental housing.
(c) Home mortgages may be acquired, purchased, and financed, and
bonds may be issued under this part for purposes of this part,
notwithstanding that any other law or resolution may provide for the
acquisition, purchase, and financing of like home mortgages, or the
issuance of bonds for like purposes, and without regard to the
requirements, restrictions, limitations, or other provisions
contained in any other law or resolution.
52053.5. Notwithstanding subdivision (b) of Section 52053 or any of
the limitations of this part:
(a) A charter city having seven community development districts
established for purposes of Section 105(a)(8) of Public Law 93-383,
as amended, and which, prior to February 1, 1980, issued revenue
bonds to finance mortgage loans on homes, may issue not more than
thirty-three million dollars ($33,000,000) of additional revenue
bonds pursuant to local ordinance to make or purchase mortgage loans
on homes as defined in Section 52012, subject to the following
conditions:
(1) For mortgage loans on homes located within such a community
development district, the income of a purchaser shall not exceed 150
percent of the median income within the city.
(2) For a home located outside of a community development
district, the income of a purchaser shall not exceed 120 percent of
the city's area median income.
(3) The maximum loan amount for homes undergoing rehabilitation in
connection with financing pursuant to this subdivision shall not
exceed the median purchase price of a home in the city.
(b) A city and county may issue not more than sixty million
dollars ($60,000,000) of revenue bonds pursuant to local ordinance
for the purpose of financing the purchase of residential housing
units under the following conditions:
(1) The proceeds of the bonds will be used in combination with
subsidy moneys made available through grant programs such as the
Urban Development Action Grant, the Community Development Block Grant
or other federal, state, local, or private moneys to finance the
purchase of residential housing under an ownership or financing
arrangement which provides for the sharing of equity appreciation
between one or more occupants of each property and the city and
county (or an entity acting on its behalf).
(2) The revenue bonds and subsidy moneys shall provide for the
following:
(A) At least 50 percent of the participants of the program shall
be lower income households, as defined in Section 50079.5, unless
after the date six months after the date of issuance of the bonds the
city and county makes a written finding that this requirement cannot
be achieved in spite of the diligent efforts of the city and county
and because of the limited availability of subsidy moneys, in which
case at least 25 percent of the participants of the program shall be
lower-income households.
(B) In no case shall participants of the program be persons and
families whose incomes are more than 150 percent of the area medium
income.
(C) Not less than 30 percent of the residential housing units
financed pursuant to this subdivision shall be units where the
participant in the program is the first occupant or units which are
being substantially rehabilitated. As used in this subparagraph,
"substantial rehabilitation" means rehabilitation in which the costs
of rehabilitation equal or exceed 20 percent of the value of the
structure after rehabilitation.
However, the requirements of this paragraph may be modified by the
city and county, as necessary to meet the conditions of approval of
the United States Department of Housing and Urban Development.
(c) Notwithstanding any other provision of law, bonds issued
pursuant to this section shall be legal investments for all trust
funds, insurance companies, savings and loan associations, investment
companies and banks, both savings and commercial, and shall be legal
investments for executors, administrators, trustees and all other
fiduciaries. Such bonds shall be legal investments for state school
funds and for any funds which may be invested in county, municipal,
or school district bonds, and such bonds shall be deemed to be
securities which may properly and legally be deposited with, and
received by, any state or municipal officer or by any agency or
political subdivision of the state for any purpose for which the
deposit of bonds or obligations of the state is now, or may hereafter
be authorized by law, including deposits to secure public funds.
(d) It is not the intent of the Legislature in enacting this
section to change the provisions of this part, but only to continue
programs relating to the goals of this part and to prevent loss of
commitments for Urban Development Action Grants.
52054. If any provision of this part or the application thereof to
any person or circumstances is held invalid, such invalidity shall
not affect other provisions or applications of the part which can be
given effect without the invalid provision or application, and to
this end the provisions of this part are severable.
52051. The provisions of Chapter 16 (commencing with Section 7260)
of Division 7 of Title 1 of the Government Code shall not apply to a
mortgagor of any home acquired by foreclosure, trust deed, sale or
other proceeding resulting from default on a home mortgage made by a
county or city or by a lending institution pursuant to this part.
52052. This part is necessary for the health, welfare and safety of
the state, its counties and cities and its inhabitants. Therefore,
it shall be liberally construed to effect its purposes.
52053. (a) Except as provided in subdivision (b), the powers
conferred by this part are in addition and supplemental to, and the
limitations imposed by this part shall not affect the powers
conferred by, any other law.
(b) The Legislature finds and declares that the market for
municipal home mortgage revenue bonds is limited and that, as a
matter of overriding state policy, issuances of such bonds should be
limited to financing housing for persons whose housing needs are
least satisfied by conventional mortgage financing and other
governmental home ownership assistance programs. This part contains
appropriate limitations with respect to mortgagor income and also
contains provisions which will assist in assuring that no bond
issuance under this part will result in any impairment of the public
credit in this state.
Therefore, this part shall be the exclusive authority for issuance
of revenue bonds by any city, including any charter city, county, or
city and county for the purpose of providing long-term mortgage
financing for the construction or acquisition of housing, excluding
multifamily rental housing and multifamily cooperative housing;
provided, that nothing in this subdivision shall supersede any other
provision of state law authorizing the provision of long-term
mortgage financing by any state agency or local public entity; and
provided further, that nothing in this subdivision shall affect, or
be in any way applicable to, revenue bonds issued (and loans made
with the proceeds thereof) by the Cities of San Bernardino, Burbank,
or Pasadena on or before July 1, 1980, the interest on which would be
excludable from the gross income of the recipients by reason of the
applicable laws of the United States and the regulations promulgated
thereunder in effect at the time such revenue bonds are issued, or by
any other charter city on or before February 1, 1980, the interest
on which would be excludable from the gross income of the recipients
by reason of Section 4(b) of the proposed Mortgage Subsidy Bond Tax
Act of 1979, as reported by the Committee on Ways and Means of the
United States House of Representatives on August 31, 1979.
Furthermore, nothing in this subdivision shall affect the authority
conferred upon a charter city by its charter to issue revenue bonds
to undertake a program of long-term mortgage financing of multifamily
rental housing.
(c) Home mortgages may be acquired, purchased, and financed, and
bonds may be issued under this part for purposes of this part,
notwithstanding that any other law or resolution may provide for the
acquisition, purchase, and financing of like home mortgages, or the
issuance of bonds for like purposes, and without regard to the
requirements, restrictions, limitations, or other provisions
contained in any other law or resolution.
52053.5. Notwithstanding subdivision (b) of Section 52053 or any of
the limitations of this part:
(a) A charter city having seven community development districts
established for purposes of Section 105(a)(8) of Public Law 93-383,
as amended, and which, prior to February 1, 1980, issued revenue
bonds to finance mortgage loans on homes, may issue not more than
thirty-three million dollars ($33,000,000) of additional revenue
bonds pursuant to local ordinance to make or purchase mortgage loans
on homes as defined in Section 52012, subject to the following
conditions:
(1) For mortgage loans on homes located within such a community
development district, the income of a purchaser shall not exceed 150
percent of the median income within the city.
(2) For a home located outside of a community development
district, the income of a purchaser shall not exceed 120 percent of
the city's area median income.
(3) The maximum loan amount for homes undergoing rehabilitation in
connection with financing pursuant to this subdivision shall not
exceed the median purchase price of a home in the city.
(b) A city and county may issue not more than sixty million
dollars ($60,000,000) of revenue bonds pursuant to local ordinance
for the purpose of financing the purchase of residential housing
units under the following conditions:
(1) The proceeds of the bonds will be used in combination with
subsidy moneys made available through grant programs such as the
Urban Development Action Grant, the Community Development Block Grant
or other federal, state, local, or private moneys to finance the
purchase of residential housing under an ownership or financing
arrangement which provides for the sharing of equity appreciation
between one or more occupants of each property and the city and
county (or an entity acting on its behalf).
(2) The revenue bonds and subsidy moneys shall provide for the
following:
(A) At least 50 percent of the participants of the program shall
be lower income households, as defined in Section 50079.5, unless
after the date six months after the date of issuance of the bonds the
city and county makes a written finding that this requirement cannot
be achieved in spite of the diligent efforts of the city and county
and because of the limited availability of subsidy moneys, in which
case at least 25 percent of the participants of the program shall be
lower-income households.
(B) In no case shall participants of the program be persons and
families whose incomes are more than 150 percent of the area medium
income.
(C) Not less than 30 percent of the residential housing units
financed pursuant to this subdivision shall be units where the
participant in the program is the first occupant or units which are
being substantially rehabilitated. As used in this subparagraph,
"substantial rehabilitation" means rehabilitation in which the costs
of rehabilitation equal or exceed 20 percent of the value of the
structure after rehabilitation.
However, the requirements of this paragraph may be modified by the
city and county, as necessary to meet the conditions of approval of
the United States Department of Housing and Urban Development.
(c) Notwithstanding any other provision of law, bonds issued
pursuant to this section shall be legal investments for all trust
funds, insurance companies, savings and loan associations, investment
companies and banks, both savings and commercial, and shall be legal
investments for executors, administrators, trustees and all other
fiduciaries. Such bonds shall be legal investments for state school
funds and for any funds which may be invested in county, municipal,
or school district bonds, and such bonds shall be deemed to be
securities which may properly and legally be deposited with, and
received by, any state or municipal officer or by any agency or
political subdivision of the state for any purpose for which the
deposit of bonds or obligations of the state is now, or may hereafter
be authorized by law, including deposits to secure public funds.
(d) It is not the intent of the Legislature in enacting this
section to change the provisions of this part, but only to continue
programs relating to the goals of this part and to prevent loss of
commitments for Urban Development Action Grants.
52054. If any provision of this part or the application thereof to
any person or circumstances is held invalid, such invalidity shall
not affect other provisions or applications of the part which can be
given effect without the invalid provision or application, and to
this end the provisions of this part are severable.
52051. The provisions of Chapter 16 (commencing with Section 7260)
of Division 7 of Title 1 of the Government Code shall not apply to a
mortgagor of any home acquired by foreclosure, trust deed, sale or
other proceeding resulting from default on a home mortgage made by a
county or city or by a lending institution pursuant to this part.
52052. This part is necessary for the health, welfare and safety of
the state, its counties and cities and its inhabitants. Therefore,
it shall be liberally construed to effect its purposes.
52053. (a) Except as provided in subdivision (b), the powers
conferred by this part are in addition and supplemental to, and the
limitations imposed by this part shall not affect the powers
conferred by, any other law.
(b) The Legislature finds and declares that the market for
municipal home mortgage revenue bonds is limited and that, as a
matter of overriding state policy, issuances of such bonds should be
limited to financing housing for persons whose housing needs are
least satisfied by conventional mortgage financing and other
governmental home ownership assistance programs. This part contains
appropriate limitations with respect to mortgagor income and also
contains provisions which will assist in assuring that no bond
issuance under this part will result in any impairment of the public
credit in this state.
Therefore, this part shall be the exclusive authority for issuance
of revenue bonds by any city, including any charter city, county, or
city and county for the purpose of providing long-term mortgage
financing for the construction or acquisition of housing, excluding
multifamily rental housing and multifamily cooperative housing;
provided, that nothing in this subdivision shall supersede any other
provision of state law authorizing the provision of long-term
mortgage financing by any state agency or local public entity; and
provided further, that nothing in this subdivision shall affect, or
be in any way applicable to, revenue bonds issued (and loans made
with the proceeds thereof) by the Cities of San Bernardino, Burbank,
or Pasadena on or before July 1, 1980, the interest on which would be
excludable from the gross income of the recipients by reason of the
applicable laws of the United States and the regulations promulgated
thereunder in effect at the time such revenue bonds are issued, or by
any other charter city on or before February 1, 1980, the interest
on which would be excludable from the gross income of the recipients
by reason of Section 4(b) of the proposed Mortgage Subsidy Bond Tax
Act of 1979, as reported by the Committee on Ways and Means of the
United States House of Representatives on August 31, 1979.
Furthermore, nothing in this subdivision shall affect the authority
conferred upon a charter city by its charter to issue revenue bonds
to undertake a program of long-term mortgage financing of multifamily
rental housing.
(c) Home mortgages may be acquired, purchased, and financed, and
bonds may be issued under this part for purposes of this part,
notwithstanding that any other law or resolution may provide for the
acquisition, purchase, and financing of like home mortgages, or the
issuance of bonds for like purposes, and without regard to the
requirements, restrictions, limitations, or other provisions
contained in any other law or resolution.
52053.5. Notwithstanding subdivision (b) of Section 52053 or any of
the limitations of this part:
(a) A charter city having seven community development districts
established for purposes of Section 105(a)(8) of Public Law 93-383,
as amended, and which, prior to February 1, 1980, issued revenue
bonds to finance mortgage loans on homes, may issue not more than
thirty-three million dollars ($33,000,000) of additional revenue
bonds pursuant to local ordinance to make or purchase mortgage loans
on homes as defined in Section 52012, subject to the following
conditions:
(1) For mortgage loans on homes located within such a community
development district, the income of a purchaser shall not exceed 150
percent of the median income within the city.
(2) For a home located outside of a community development
district, the income of a purchaser shall not exceed 120 percent of
the city's area median income.
(3) The maximum loan amount for homes undergoing rehabilitation in
connection with financing pursuant to this subdivision shall not
exceed the median purchase price of a home in the city.
(b) A city and county may issue not more than sixty million
dollars ($60,000,000) of revenue bonds pursuant to local ordinance
for the purpose of financing the purchase of residential housing
units under the following conditions:
(1) The proceeds of the bonds will be used in combination with
subsidy moneys made available through grant programs such as the
Urban Development Action Grant, the Community Development Block Grant
or other federal, state, local, or private moneys to finance the
purchase of residential housing under an ownership or financing
arrangement which provides for the sharing of equity appreciation
between one or more occupants of each property and the city and
county (or an entity acting on its behalf).
(2) The revenue bonds and subsidy moneys shall provide for the
following:
(A) At least 50 percent of the participants of the program shall
be lower income households, as defined in Section 50079.5, unless
after the date six months after the date of issuance of the bonds the
city and county makes a written finding that this requirement cannot
be achieved in spite of the diligent efforts of the city and county
and because of the limited availability of subsidy moneys, in which
case at least 25 percent of the participants of the program shall be
lower-income households.
(B) In no case shall participants of the program be persons and
families whose incomes are more than 150 percent of the area medium
income.
(C) Not less than 30 percent of the residential housing units
financed pursuant to this subdivision shall be units where the
participant in the program is the first occupant or units which are
being substantially rehabilitated. As used in this subparagraph,
"substantial rehabilitation" means rehabilitation in which the costs
of rehabilitation equal or exceed 20 percent of the value of the
structure after rehabilitation.
However, the requirements of this paragraph may be modified by the
city and county, as necessary to meet the conditions of approval of
the United States Department of Housing and Urban Development.
(c) Notwithstanding any other provision of law, bonds issued
pursuant to this section shall be legal investments for all trust
funds, insurance companies, savings and loan associations, investment
companies and banks, both savings and commercial, and shall be legal
investments for executors, administrators, trustees and all other
fiduciaries. Such bonds shall be legal investments for state school
funds and for any funds which may be invested in county, municipal,
or school district bonds, and such bonds shall be deemed to be
securities which may properly and legally be deposited with, and
received by, any state or municipal officer or by any agency or
political subdivision of the state for any purpose for which the
deposit of bonds or obligations of the state is now, or may hereafter
be authorized by law, including deposits to secure public funds.
(d) It is not the intent of the Legislature in enacting this
section to change the provisions of this part, but only to continue
programs relating to the goals of this part and to prevent loss of
commitments for Urban Development Action Grants.
52054. If any provision of this part or the application thereof to
any person or circumstances is held invalid, such invalidity shall
not affect other provisions or applications of the part which can be
given effect without the invalid provision or application, and to
this end the provisions of this part are severable.
