2010 California Code
Health and Safety Code
Chapter 6.8. Home Purchase Assistance Program

51341.  The Legislature finds and declares that:
   (a) There is a continuing and urgent need to provide affordable
mortgage financing to meet the increasingly unfulfilled housing needs
of citizens of this state, (b) there is a need to develop financial
mechanisms to make homes affordable to first-time homebuyers, (c) the
high cost of housing impedes the ability of California employers to
compete in the national marketplace for employees, and (d),
therefore, this chapter is enacted to make existing tax-exempt and
taxable bond financing for residential mortgages more affordable to
California's first-time homebuyers.



51342.  This chapter shall be known and may be cited as the
Roberti-Greene Home Purchase Assistance Program.



51344.  There is hereby created in the State Treasury a Home
Purchase Assistance Fund. "Fund," as used in this chapter, means the
Home Purchase Assistance Fund. Notwithstanding the provisions of
Section 13340 of the Government Code, all moneys in the fund are
continuously appropriated to the agency, without regard to fiscal
years, for expenditure pursuant to this chapter and defraying actual
administrative costs of the agency. Notwithstanding the provisions of
Section 16305.7 of the Government Code, any interest earned or other
increment derived from investments made from moneys in the fund
shall be deposited in the fund.


51345.  (a) The agency shall administer a home purchase assistance
program in accordance with this chapter. The purpose of the home
purchase assistance program is to assist first-time homebuyers to
utilize existing mortgage financing available pursuant to this part
or Division 4 (commencing with Section 800) of the Military and
Veterans Code with the additional financial resources made available
pursuant to Part 8 (commencing with Section 53130).
   (b) Home purchase assistance under this chapter shall include, but
not be limited to: (1) an interest rate subsidy to reduce the
interest rate, (2) a deferred-payment, low-interest, second-mortgage
loan to reduce the principal and interest payments, and (3)
downpayment assistance to make financing affordable to first-time
homebuyers.
   (c) In no case shall the interest rate subsidy reduce the
effective interest rate to the borrower below 3 percent per annum,
nor shall the deferred-payment, low-interest, second mortgage loan
exceed 49 percent of the total debt financing necessary to purchase
the home.
   (d) The amount of home purchase assistance shall be a second
mortgage loan secured by a deed of trust of second priority to the
primary financing provided by the agency or the Department of
Veterans Affairs. The term of the home purchase assistance shall not
exceed the term of the primary loan.
   (e) The amount of home purchase assistance shall be due and
payable at the end of the term, upon the sale of the home, or upon
refinancing. The borrower may refinance the mortgages on the home if
the principal of and accrued interest on the second mortgage loan
securing the home purchase assistance are repaid in full. All
repayments shall be deposited in the fund.



51346.  The agency may execute a contract with the Department of
Veterans Affairs to provide home purchase assistance to first-time
veteran homebuyers.


51347.  The agency may provide mortgage insurance for the home
purchase assistance provided pursuant to this chapter and may use not
more than 15 percent of the moneys provided for purposes of this
chapter for mortgage insurance.


51348.  It is the intent of the Legislature that no more than 50
percent of the home purchase assistance provided under this chapter
shall be for the purchase of homes that have not been previously
occupied.


51349.  (a) The agency shall have all the powers conferred upon it
by this part and Part 4 (commencing with Section 51600) in
administering this chapter.
   (b) The authority provided by this section shall be conferred upon
the Department of Veterans Affairs by any contract executed pursuant
to Section 51346, with respect to the assistance being provided
pursuant to the contract.