2007 California Health and Safety Code Chapter 3. Financial Provisions

CA Codes (hsc:51000-51007)

51000.  The California Housing Finance Fund is hereby created in the
State Treasury.
   Construction loan funds may be transferred to the construction
lender or to the contractor as necessary to meet draws for progress
payments pursuant to rules and regulations of the agency.
   Notwithstanding Section 13340 of the Government Code, all money in
the fund is hereby continuously appropriated to the agency for
carrying out the purposes of this part, and, notwithstanding Chapter
2 (commencing with Section 12850) of Part 2.5 of Division 3 of Title
2 of the Government Code, or the provisions of Sections 11032 and
11033 of the Government Code, and except as provided in this part,
expenditure of the fund shall not be subject to the supervision or
approval of any other officer or division of state government.
However, the agency's budget shall be reviewed as provided in Section
50913.  The agency may pledge any or all of the moneys in the fund
as security for payment of the principal of, and interest on, and
redemption premiums on, bonds issued pursuant to this part, and, for
that purpose or as necessary or convenient to the accomplishment of
any other purpose of the agency, may divide the fund into separate
accounts.  All moneys accruing to the agency pursuant to this part
from whatever source shall be deposited in the fund.



51000.1.  Notwithstanding any other provision of law, except as
provided in Section 51000.3, no officer or division of state
government shall transfer any sums of money from any fund or account
of the agency, except as may be ordered or authorized by either of
the following:
   (a) The executive director of the agency or his or her designee.
   (b) The designated trustee, pursuant to authority contained in
appropriate adopted resolutions pertaining to notes or bonds issued
by the agency.



51000.3.  Section 51000.1 does not supersede any provision of
Article 2 (commencing with Section 11270) of Chapter 3 of Division 3
of Title 2 of the Government Code.



51000.4.  Upon cessation of all agency operations and settlement of
all obligations and debts, all assets of the California Housing
Finance Agency, including those in all accounts and funds of the
agency, whether established by statute or otherwise, shall revert to
the General Fund.



51001.  Pursuant to any agreements with the holders of particular
bonds pledging any particular assets, revenues, or moneys, the agency
may create separate accounts in the fund to manage assets, revenues,
or moneys in the manner set forth in such agreements.



51002.  Subject to any agreements with holders of particular bonds,
revenue derived pursuant to this part from property improvement loans
and mortgage loans shall be deposited in a special account, which
shall be used exclusively for the amortization of debt and the
protection of the underlying security, until current debt service and
reserves are funded.



51003.  The agency shall, from time to time, direct the Treasurer to
invest moneys in the fund which are not required for its current
needs, including proceeds from the sale of any bonds, in any eligible
securities specified in Section 16430 of the Government Code which
the agency shall designate.  The agency may direct the Treasurer to
invest the moneys by entering into repurchase agreements or reverse
repurchase agreements, which, for purposes of this section, shall
mean agreements for the purchase or sale of eligible securities
pursuant to which the seller or buyer agrees to repurchase or sell
back the securities on or before a specified date and for a specified
amount.  The agency may direct the Treasurer to invest the moneys in
investment agreements with corporations, financial institutions, or
national associations within the United States which are rated by a
nationally recognized rating service within the top three ratings of
the service.  For purposes of this section, investment agreements
shall mean any agreement for the investment of moneys in the fund
whether at fixed or variable interest rates, and may include, but not
be limited to, repurchase agreements, notes, uncollateralized time
deposits and certificates of deposit.  The agency may direct the
Treasurer to deposit moneys in interest-bearing accounts in state or
national banks or other financial institutions having principal
offices in this state.
   Subject to any agreement with holders of particular bonds, in
furtherance of the provisions of Section 51373, and to the extent
permitted by law, the agency may also invest moneys of the fund in
obligations or financial institutions as are permitted by board
resolution.  The agency may alternatively require the transfer of
moneys in the fund to the Surplus Money Investment Fund for
investment pursuant to Article 4 (commencing with Section 16470) of
Chapter 3 of Part 2 of Division 4 of Title 2 of the Government Code.

   All interest or other increment resulting from such investment or
deposit shall be deposited in the fund, notwithstanding Section
16305.7 of the Government Code.  Moneys in the fund shall not be
subject to transfer to any other fund pursuant to any provision of
Part 2 (commencing with Section 16300) of Division 4 of Title 2 of
the Government Code, excepting the Surplus Money Investment Fund.



51004.  The agency may utilize moneys which may be appropriated to
the fund from time to time by the Legislature for effectuating its
purposes, including, but not limited to, the establishment of
reserves or contingency funds to be available for payments on the
principal, interest, redemption premium, and sinking funds of any
bonds of the agency and the direct payment of principal, interest,
redemption premium, and sinking funds on the bonds of the agency.



51004.5.  On or before May 1 of each year, commencing in 1980, the
agency shall submit to the Legislature and the Governor, an annual
plan for using its revenue bonding authority for the succeeding
fiscal year consistent with meeting the legislative goals and
requirements for the agency, including requirements relating to units
made available in each of its programs or proposed programs for low
and very low income households, the allocations between elderly and
family households, and requirements relating to units for new
construction and substantial rehabilitation.  The agency shall review
and update each annual plan on a quarterly basis.  The agency's
ability to implement the plan shall be reported in the annual report
required by Section 51005.



51005.  (a) The agency shall, by November 1 of each year, submit an
annual report of its activities under this division for the preceding
year to the Governor, the Secretary of the Business and
Transportation Agency, the Director of Housing and Community
Development, the Treasurer, the Joint Legislative Budget Committee,
the Legislative Analyst, and the Legislature.  The report shall set
forth a complete operating and financial statement of the agency
during the concluded fiscal year.  The report shall specify the
number of units assisted, the distribution of units among the
metropolitan, nonmetropolitan, and rural areas of the state, and
shall contain a summary of statistical data relative to the incomes
of households occupying assisted units, the monthly rentals charged
to occupants of rental housing developments, and the sales prices of
residential structures purchased during the previous fiscal year by
persons or families of low or moderate income.  The report shall also
include a statement of accomplishment during the previous year with
respect to the agency's progress, priorities, and affirmative action
efforts.  The agency shall specifically include in its report on
affirmative action goals, statistical data on the numbers and
percentages of minority sponsors, developers, contractors,
subcontractors, suppliers, architects, engineers, attorneys, mortgage
bankers or other lenders, insurance agents, and managing agents.
   (b) The report shall also include specific information evaluating
the extent to which the programs administered by the agency have
attained the statutory objectives of the agency, including, but not
limited to, (1) the primary purpose of the agency in meeting the
housing needs of persons and families of low or moderate income
pursuant to Section 50950, (2) the occupancy requirements for very
low income households established pursuant to Sections 50951 and
51226, (3) the elderly and orthopedic disability occupancy
requirements established pursuant to Section 51230, (4) the use of
surplus moneys pursuant to Section 51007, (5) the metropolitan,
nonmetropolitan, and rural goals established pursuant to subdivision
(h) of Section 50952, (6) the California Statewide Housing Plan, as
required by Section 50154, (7) the statistical and other information
developed and maintained pursuant to Section 51610, (8) the number of
manufactured housing units assisted by the agency, (9) information
with respect to the proceeds derived from the issuance of bonds or
securities and any interest or other increment derived from the
investment of bonds or securities, and the uses for which those
proceeds or increments are being made as provided for in Section
51365, including the amount by which each fund balance exceeds
indenture requirements, (10) any recommendations described in
subdivision (d), (11) any recommendations described in Section 51227,
(12) the revenue bonding authority plan adopted pursuant to Section
51004.5, (13) the statistical and other information required to be
provided pursuant to Section 50156, (14) an analysis of the agency's
compliance with the targeting requirements of subsection (d) of
Section 142 of the Internal Revenue Code of 1986 (26 U.S.C. Sec. 142)
with respect to any issue of bonds subject to those requirements
under Section 103 of the Internal Revenue Code of 1986 (26 U.S.C.
Sec. 103), including the numbers of rental units subject to this
reporting requirement by categories based on the number of bedrooms
per unit, and (15) the statistical and other information relating to
congregate housing for the elderly pursuant to Section 51218.
   The agency may, at its option, include the information required by
this section in a single document or may separately report the
statistical portion of the information in a supplement appended to
its annual report.  This statistical supplement shall be distributed
with copies of the agency's annual report, but need not be provided
to bond rating agencies, underwriters, investors, developers, or
financial institutions.
   (c) The agency shall cause an audit of its books and accounts with
respect to its activities under this division to be made at least
once during each fiscal year by an independent certified public
accountant and the agency shall be subject to audit by the Department
of Finance not more often than once each fiscal year.
   (d) The agency shall assess any obstacles or problems that it has
encountered in meeting its mandate to serve nonmetropolitan and rural
metropolitan areas, and recommend legislative and administrative
solutions to overcome these obstacles or problems.  The agency shall
separately assess its progress in meeting the rehabilitation needs of
rural areas and the new construction needs of rural areas, and
separately assess its progress as to single and multifamily units.
The agency shall include in its report a quantification and
evaluation of its progress in meeting the housing needs of
communities of various sizes in rural areas.
   (e) By December 1 of each fiscal year, the agency shall ascertain
that not less than 25 percent of the total units financed by mortgage
loans during the preceding 12 months pursuant to this part were made
available to very low income households.  If the agency finds that
these very low income occupancy goals have not been met, the agency
shall immediately notify the Governor, the Speaker of the Assembly,
and the Senate Committee on Rules, and shall recommend legislation or
other action as may be required to make (1) at least 25 percent of
the units so available, and (2) at least 25 percent of the units
thereafter financed so available.  In housing developments for which
the agency provides a construction loan but not a mortgage loan, the
agency shall report annually on the percentage of units projected to
be made available for occupancy and actually occupied by lower income
households.



51006.  The executive director of the agency shall immediately
certify in writing to the Joint Legislative Audit Committee, the
Joint Legislative Budget Committee, the Speaker of the Assembly, the
Senate Rules Committee, and the Governor, if the agency is notified
by the trustee in writing that moneys of the agency will not be
sufficient to meet principal payments, sinking fund payments, and
interest payments on bonds authorized under this part and to restore
and maintain necessary bond reserve funds.  However, certification
pursuant to this section need not be made unless this insufficiency
will result in an event of default under the respective bond
resolution authorizing the bonds.



51007.  Subject to any ageements with holders of particular bonds,
all moneys available for carrying out the purposes of this part and
declared by the agency to be surplus moneys which are not required to
service or retire bonds issued on behalf of the agency, pay
administrative expenses of the agency, accumulate necessary operating
or loss reserves, or repay loans to the agency from the General Fund
shall be used by the agency, with respect to existing housing
developments, to provide special interest reduction programs,
financial assistance for housing developments or subsidies for
occupants or owners thereof, or counseling programs, as authorized by
this division.