reglab/statecodes huggingface dataset:
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 4 - BOND AND LOAN INSURANCE › CHAPTER 2 - Administration › Section 51623.

51623. (a)  The California Housing Loan Insurance Fund, as provided for pursuant to Section 51653 as it read prior to the effective date of the act that adds this part, is continued in existence, and, pursuant to Section 51603, is referred to as the insurance fund. Notwithstanding Section 13340 of the Government Code, all money in the insurance fund is hereby continuously appropriated to the agency without regard to fiscal year for the purpose of insuring loans and bonds pursuant to this part and for the purpose of defraying administrative expenses incurred by the fund in operating those programs of loan and bond insurance. All insurance premiums shall be deposited in the insurance fund.
(b)  The insurance fund shall be administered by the agency for the purpose of insuring loans and bonds as provided in this part. Any appropriation made therefrom or thereto before the effective date of this section shall continue to be available for the purposes for which it was made.
(Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 4 - BOND AND LOAN INSURANCE › CHAPTER 2 - Administration › Section 51624.

51624. The agency shall prepare a preliminary budget for the agency’s activities under this part on or before December 1 of each year for the ensuing fiscal year, to be reviewed by the Secretary of Business, Consumer Services and Housing, the Director of Finance, and the Joint Legislative Budget Committee.
(Amended by Stats. 2013, Ch. 352, Sec. 382. (AB 1317) Effective September 26, 2013. Operative July 1, 2013, by Sec. 543 of Ch. 352.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 4 - BOND AND LOAN INSURANCE › CHAPTER 2 - Administration › Section 51625.

51625. (a)  The agency shall cause all moneys in the insurance fund which are in excess of current requirements to be invested and reinvested, from time to time, in the same manner as provided for private insurance carriers pursuant to Article 3 (commencing with Section 1170) of Chapter 2 of Part 2 of Division 1 of the Insurance Code.
(b)  All interest or other increment resulting from the investment shall be deposited in the insurance fund, notwithstanding Section 16305.7 of the Government Code. Moneys in the insurance fund shall not be subject to transfer to any other fund pursuant to Part 2 (commencing with Section 16300) of Division 4 of Title 2 of the Government Code, except the Surplus Money Investment Fund.
(Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 4 - BOND AND LOAN INSURANCE › CHAPTER 2 - Administration › Section 51626.

51626. The insurance fund shall be organized as a public enterprise fund.
(Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 4 - BOND AND LOAN INSURANCE › CHAPTER 2 - Administration › Section 51627.

51627. The assets of the insurance fund shall be applicable to the payment of losses sustained on account of insurance and to the payment of the salaries and other expenses charged against it in accordance with this part.
(Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 4 - BOND AND LOAN INSURANCE › CHAPTER 2 - Administration › Section 51628.

51628. The agency shall, after a reasonable time during which it may establish a business, be competitive with other insurers, and it is the intent of the Legislature that the insurance fund shall ultimately become neither more nor less than self-supporting. However, this section shall not be construed to preclude the insurance fund from operating in a manner that will permit the agency to create additional reserves from operations in order that the agency can maximize its insurance capacity.
(Amended by Stats. 2003, Ch. 553, Sec. 5. Effective January 1, 2004.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 4 - BOND AND LOAN INSURANCE › CHAPTER 2 - Administration › Section 51632.

51632. Claims arising out of activities of the agency on behalf of the insurance fund pursuant to this part are exempted from the provisions of Part 3 (commencing with Section 900) of Division 3.6 of Title 1 of the Government Code.
(Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 4 - BOND AND LOAN INSURANCE › CHAPTER 2 - Administration › Section 51636.

51636. Except as provided in this part, the agency, on behalf of the insurance fund pursuant to this part, shall not be subject to the provisions of the Government Code made applicable to state agencies generally or collectively, unless the section specifically names the fund as an agency to which the provision applies.
(Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 4 - BOND AND LOAN INSURANCE › CHAPTER 2 - Administration › Section 51637.

51637. With respect to the administration of the insurance fund, the agency shall be subject to the provisions of Chapter 10.3 (commencing with Section 3512) of Division 4 of Title 1 of, and Division 5 (commencing with Section 18000) of Title 2 of, the Government Code, and any other personnel management provisions in law that are generally applicable to state employees. Notwithstanding subdivision (e) of Section 3513 of the Government Code, up to five positions of the insurance fund of the agency may be designated as managerial under Section 18801.1 of the Government Code. All other position designations in the insurance fund of the agency are subject to Sections 3513 and 18801.1 of the Government Code. In making these designations, consideration shall be given to the agency’s need and continued ability to attract and maintain qualified individuals within the insurance fund.
(Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 4 - BOND AND LOAN INSURANCE › CHAPTER 2 - Administration › Section 51639.

51639. The agency shall establish reserve accounts for unearned premiums, losses, and potential catastrophic losses caused by economic cycles. The agency shall not cause sums to be withdrawn from the loan insurance reserve account in amounts which would reduce the moneys therein to less than the insurance reserve requirement, except as necessary to satisfy liabilities arising under contracts of loan insurance. In the event that the loan insurance reserve account is reduced to less than the insurance reserve requirement, the agency shall cease making commitments for, and contracts of, insurance until the loan insurance reserve account has been restored to satisfy that requirement.
(Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 4 - BOND AND LOAN INSURANCE › CHAPTER 2 - Administration › Section 51640.

51640. There is hereby continued in existence a bond insurance reserve account in the insurance fund to secure commitments under contracts to insure bonds. The agency shall take all reasonable steps to ensure that the bond reserve account is continuously maintained at not less than the bond reserve requirement. The agency shall not cause sums to be withdrawn from the bond insurance reserve account in amounts which would reduce the moneys therein to less than the bond reserve requirement, except as necessary to satisfy liabilities arising under contracts of bond insurance. In the event that the bond insurance reserve account is reduced to less than the bond reserve requirement, the agency shall cease making contracts of bond insurance until the account has been restored to satisfy that requirement.
(Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 4 - BOND AND LOAN INSURANCE › CHAPTER 2 - Administration › Section 51641.

51641. The agency may create other accounts within the insurance fund as it deems are necessary or convenient to carry out the purposes of this part.
(Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 4 - BOND AND LOAN INSURANCE › CHAPTER 2 - Administration › Section 51643.

51643. The agency shall not be required to pay any tax or assessment on any property owned by the fund or upon the income therefrom.
(Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 4 - BOND AND LOAN INSURANCE › CHAPTER 2 - Administration › Section 51643.5.

51643.5. (a)  The agency shall be subject to, and comply with, the same reserve certification requirements as mortgage guaranty insurers who are licensed pursuant to Chapter 2A (commencing with Section 12640.01) of Part 6 of Division 2 of the Insurance Code.
(b)  The agency shall not otherwise be subject to the Insurance Code with respect to the operation of the insurance fund, except as provided in this part.
(Amended by Stats. 2003, Ch. 553, Sec. 7. Effective January 1, 2004.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 4 - BOND AND LOAN INSURANCE › CHAPTER 3 - Program Priorities › Section 51645.

51645. The agency shall establish priorities for the allocation of loan-insurance assistance in accordance with the purposes and general provisions of Chapter 2 (commencing with Section 50950) of Part 3 of this division and Article 6 (commencing with Section 51225) of Chapter 5 of Part 3 of this division, in compliance with the needs identified in the California Statewide Housing Plan, and as provided in this part.
(Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 4 - BOND AND LOAN INSURANCE › CHAPTER 3 - Program Priorities › Section 51647.

51647. The agency shall establish and maintain separate accounts in the insurance fund for a single-family mortgage guaranty insurance program and a multifamily residential mortgage guaranty insurance program. Each program shall be actuarially sound and shall be capitalized through separate insurance funds.
(Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 4 - BOND AND LOAN INSURANCE › CHAPTER 3 - Program Priorities › Section 51648.

51648. While maintaining the actuarial soundness of the fund, the agency shall make efforts to do both of the following:
(a)  Equitably distribute insurance based on a regionalized basis, weighted in accordance with the geographic distribution of the state’s population.
(b)  Focus on housing opportunities that benefit any of the following:
(1)  Households with incomes at or below area median income.
(2)  Households that require mortgages at or above 95 percent of the price of the home.
(3)  Households that are participating in locally administered housing programs.
(Amended by Stats. 2003, Ch. 553, Sec. 9. Effective January 1, 2004.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 4 - BOND AND LOAN INSURANCE › CHAPTER 4 - Loan Insurance › Section 51650.

51650. (a)  (1)  To be qualified for loan insurance, a borrower shall be, or by reason of a loan insured pursuant to this part shall become, the owner of a multifamily rental housing development or a single-family residential structure for which an insured loan is authorized, and shall be able to bear the usual expenses of maintaining the housing development, development, or structure and repay the loan.
(2)  To be qualified for loan insurance on a single-family residential housing unit, the borrower shall also do either of the following:
(A)  Qualify as a person or family of low or moderate income, as that term is defined in Section 51603.
(B)  Until January 1, 2011, otherwise meet the requirements for participation in an affordable housing program or product offered by the Federal National Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Association (Freddie Mac).
(3)  The agency may, by resolution, establish additional requirements that it deems necessary to accomplish the purposes of this part.
(b)  For the purpose of increasing the efficiency and minimizing the cost of the loan insurance program, the agency may insure or issue commitments to insure loans upon the certification of an officer of an approved lending institution that the borrower is qualified for loan insurance according to eligibility requirements specified by the agency.
(c)  No later than January 1, 2009, the agency shall report to the chairs of the housing committees of the Senate and the Assembly on the types of programs that were offered pursuant to subparagraph (B) of paragraph (2) of subdivision (a).
(Amended by Stats. 2003, Ch. 553, Sec. 10. Effective January 1, 2004.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 4 - BOND AND LOAN INSURANCE › CHAPTER 4 - Loan Insurance › Section 51651.

51651. (a)  The agency shall specify the percentage of the outstanding principal indebtedness that may be insured under this part with respect to each category of loan authorized to be insured under this part.
(b)  The agency may insure loans secured by mortgages or deeds of trust of first or second priority.
(Amended by Stats. 2003, Ch. 553, Sec. 11. Effective January 1, 2004.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 4 - BOND AND LOAN INSURANCE › CHAPTER 4 - Loan Insurance › Section 51653.

51653. Notwithstanding any other provision of law, any rental housing development which is financed from mortgages insured pursuant to this part is exempt from both of the following:
(a)  Any local government prohibitions against condominium conversion any time after 10 years from the date a certificate of occupancy is issued. Any condominium conversion shall be made in accordance with the requirements of Article 2.5 (commencing with Section 66452.50) of Chapter 3 of Division 2 of Title 7 of the Government Code.
(b)  Any rent control, except for units made available to lower income households as provided pursuant to subdivision (b) of Section 51226.
(Repealed and added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 4 - BOND AND LOAN INSURANCE › CHAPTER 4 - Loan Insurance › Section 51654.

51654. The agency may provide insurance pursuant to this part for all of the following:
(a)  Loans for residential structures that will be occupied primarily by persons and families of low or moderate income.
(b)  Loans for privately or publicly financed rental housing developments that will benefit lower income households. “Privately financed rental housing development,” as used in this subdivision, includes rental housing developments financed by local public entities, as defined in Section 50079.
(c)  Loans that otherwise meet the requirements for participation in an affordable housing program or product offered by the Federal National Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Association (Freddie Mac).
(Amended by Stats. 2003, Ch. 553, Sec. 13. Effective January 1, 2004.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 4 - BOND AND LOAN INSURANCE › CHAPTER 4 - Loan Insurance › Section 51655.

51655. Subject to this part, the agency may insure or guarantee loans made by qualified mortgage lenders for the purposes described in Section 51320.
(Repealed and added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 4 - BOND AND LOAN INSURANCE › CHAPTER 4 - Loan Insurance › Section 51656.

51656. Notwithstanding any other provision of this part, the agency may establish a program of insuring reverse mortgages as authorized by resolution of the board.
(Repealed and added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 4 - BOND AND LOAN INSURANCE › CHAPTER 4 - Loan Insurance › Section 51657.

51657. (a)  The agency shall establish, and may from time to time revise, after public hearings, a schedule of insurance premium rates. The premiums may vary according to the category of the loan and the degree of risk related to the loan. Premiums shall be calculated in an amount which, when added to the other revenues of the insurance program, will be adequate to defray losses occasioned by defaults and the operating expenses of the program, to repay amounts advanced to the agency for purposes of this part, and gradually to expand the insurance availability of the program. Approved lending institutions shall remit premiums to the fund at intervals specified by the agency.
(b)  The agency may prescribe other charges that it finds necessary, including service charges and appraisal, inspection, and other fees.
(Repealed and added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 4 - BOND AND LOAN INSURANCE › CHAPTER 4 - Loan Insurance › Section 51658.

51658. (a)  The agency shall establish procedures to be followed by approved lending institutions in the event of default on a loan insured under this part. The agency may require that, prior to submitting a claim, an approved lending institution shall foreclose or exercise a power of sale and take possession of the property or otherwise acquire title and possession of the property within the time specified by the agency. The agency may, upon submission of the claim, pursue one of the following alternatives:
(1)  Pay the approved lending institution the benefit of the insurance.
(2)  Upon conveyance to the agency of all the right, title, and interest of the approved lending institution in the foreclosed property and the assignment of all claims of the approved lending institution against the defaulting borrower to the agency, pay to the qualified mortgage lender the sum of the unpaid principal balance of the loan, foreclosure costs, accrued interest, and other costs defined by contract.
(3)  Pay a partial claim prior to foreclosure by agreement with the insured.
(b)  In any case in which the agency has insured only a portion of the outstanding principal indebtedness of a loan, it may further provide that not more than an equivalent percentage of the total accrued interest and costs shall be payable by the agency pursuant to this section in the event of a default.
(Repealed and added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 4 - BOND AND LOAN INSURANCE › CHAPTER 4 - Loan Insurance › Section 51659.

51659. In the event of a default on an insured loan not secured by a first mortgage, the agency may, in lieu of proceeding under Section 51658, acquire the insured loan and any security therefor upon payment to the approved lending institution of an amount equal to the unpaid principal balance of the loan, accrued interest, and other costs that the agency finds are fair, reasonable, and authorized.
(Repealed and added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 4 - BOND AND LOAN INSURANCE › CHAPTER 4 - Loan Insurance › Section 51660.

51660. The agency may initiate programs of coinsurance or reinsurance with, and may procure reinsurance from, any state agency, local agency, agency of the United States, or private mortgage insurer in order to accomplish more effectively the purposes of this part. The agency may coinsure or reinsure loans made or originated by approved lending institutions which are otherwise insurable under this part.
(Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 4 - BOND AND LOAN INSURANCE › CHAPTER 4 - Loan Insurance › Section 51661.

51661. The agency may provide for, and require attendance at, homeownership counseling and training courses as a condition to the insurance of loans for the purchase or refinancing of residential structures under this part.
(Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 4 - BOND AND LOAN INSURANCE › CHAPTER 4 - Loan Insurance › Section 51662.

51662. The agency may commence any action to protect or enforce any right conferred upon it by any law, mortgage, contract of insurance, or any other agreement. The agency may bid for and purchase property sold in satisfaction thereof at any foreclosure or other sale or may otherwise acquire and take possession of that property.
(Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 4 - BOND AND LOAN INSURANCE › CHAPTER 5 - Bond Insurance › Section 51670.

51670. (a)  The agency may insure bonds issued by state or local agencies, or other types of issuers approved by the board of directors of the agency, to finance or refinance the construction, rehabilitation, acquisition, or preservation of single-family and multifamily residential housing for persons and families of low and moderate income. The agency may charge and collect insurance premiums for the insurance and fees for services performed in conjunction with the processing and approval of insurance applications as determined by the agency. The agency shall take all reasonable steps to ensure that bonds insured pursuant to this chapter are in a form satisfactory to the agency and contain provisions relating to the underlying security for the bonds as may be required by the agency.
(b)  The agency shall take reasonable steps to ensure that both of the following occur:
(1)  The bonds contain, or are subject to, terms respecting repayment, dates of maturity, and other provisions satisfactory to the agency.
(2)  The bonds contain, or are subject to, provisions that the agency deems necessary with respect to security interests of the agency, including provisions relating to subrogation, liens and releases of liens, payment of taxes, escrow or trusteeship requirements, or other matters.
(Amended by Stats. 2003, Ch. 553, Sec. 14. Effective January 1, 2004.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 4 - BOND AND LOAN INSURANCE › CHAPTER 5 - Bond Insurance › Section 51671.

51671. The agency may insure bonds pursuant to this chapter only if it determines that the proceeds of the bonds will be utilized, to the maximum extent feasible, for one of the following purposes:
(a)  Construction or rehabilitation of multifamily rental housing for persons and families of low or moderate income.
(b)  Construction or rehabilitation of housing that utilizes federal rental or other subsidies.
(c)  Construction or rehabilitation of other dwelling units for persons and families of low or moderate income.
(Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 4 - BOND AND LOAN INSURANCE › CHAPTER 6 - Loan Loss Guarantee Program › Section 51680.

51680. The agency may administer a loan loss guarantee program in order to induce private lenders to make construction loans for seismic rehabilitation improvements which are designed to increase seismic structural safety in accordance with a plan developed by a civil engineer, structural engineer, or an architect for a property which has been identified by a local jurisdiction as being potentially hazardous, as defined in Chapter 12.2 (commencing with Section 8875) of Division 1 of Title 2 of the Government Code, or as being hazardous in the event of an earthquake, as defined in Article 4 (commencing with Section 19160) of Chapter 2 of Part 3 of Division 13.
(Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993. Conditionally inoperative as provided in Section 51687.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 4 - BOND AND LOAN INSURANCE › CHAPTER 6 - Loan Loss Guarantee Program › Section 51681.

51681. (a)  Except as provided in subdivision (b), the agency shall only issue rehabilitation loan loss guarantees on single-family homes or on buildings with five or more residential units and where any commercial use in those buildings is limited to the basement and ground floors or where the commercial use occupies less than 15 percent of the total square footage of the building.
(b)  For the purpose of using the program enacted by this chapter in conjunction with the multifamily seismic retrofit program authorized by Section 50668.5, the 15-percent limitation on commercial space required by subdivision (a) may be waived in order to facilitate the seismic retrofit of lower income housing.
(Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993. Conditionally inoperative as provided in Section 51687.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 4 - BOND AND LOAN INSURANCE › CHAPTER 6 - Loan Loss Guarantee Program › Section 51683.

51683. The agency may issue a loan loss guarantee in the amount of 25 percent of the actual loss of a loan guaranteed under this section. The fund may not guarantee any loan loss in excess of the amount of permanent loan financing for the property. No guarantee shall be made for a property which does not have a binding, unconditional, permanent financing commitment from a lender acceptable to the agency, nor for a property in which the owner has less than a 20-percent equity interest.
(Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993. Conditionally inoperative as provided in Section 51687.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 4 - BOND AND LOAN INSURANCE › CHAPTER 6 - Loan Loss Guarantee Program › Section 51684.

51684. (a)  The agency shall collect a premium for a loan loss guarantee as provided in Section 51657. All premiums shall be deposited in the Seismic Rehabilitation Loan Loss Guarantee Account within the insurance fund, which is hereby created.
(b)  Premiums shall be calculated in an amount which, when added to the other revenues of the account, will be adequate to, in the following order of priority: pay losses on claims made under loan loss guarantees issued hereunder, pay actual operating costs of the program, and repay moneys transferred to the account pursuant to Section 51685. The agency is authorized to transfer from the account actual operating expenses necessary for its administration of this program. Any excess premiums shall be retained in the account and used to expand the loan loss guarantee program hereunder.
(c)  Moneys in the account shall be segregated from other moneys of the insurance fund and shall not be transferred from the account for any purpose, except as provided in this chapter. Loan loss guarantees issued by the agency for the benefit of either construction lenders or borrowers shall specify that only the moneys in the account are available to pay claims under loan loss guarantees and that the other assets of the insurance fund, the assets of the agency, and the assets of the State of California are not available to pay claims or damages resulting from loan loss guarantees.
(Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993. Conditionally inoperative as provided in Section 51687.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 4 - BOND AND LOAN INSURANCE › CHAPTER 6 - Loan Loss Guarantee Program › Section 51685.

51685. Moneys transferred to the insurance fund under this section may be used to create reserves for loan loss guarantees authorized by this chapter and for the initial administrative expenses of the program which are not offset by premium income.
(Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993. Conditionally inoperative as provided in Section 51687.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 4 - BOND AND LOAN INSURANCE › CHAPTER 6 - Loan Loss Guarantee Program › Section 51685.5.

51685.5. (a)  Notwithstanding any other provision of law, the California Housing Insurance Fund may borrow one million eight hundred thousand dollars ($1,800,000) from the Local Agency Indebtedness Fund, established pursuant to Article 6.5 (commencing with Section 16496) of Chapter 3 of Division 4 of Title 2 of the Government Code, for the purpose of establishing the Seismic Rehabilitation Loan Loss Guarantee Account within the fund as authorized by subdivision (d) of Section 51642.
(b)  Upon request of the agency, the Pooled Money Investment Board shall transfer from the Local Agency Indebtedness Fund amounts authorized hereunder and upon terms and conditions to which the agency and the board shall agree. Moneys borrowed hereunder shall constitute a loan, which shall be repaid with simple interest accrued at the pooled money investment rate exclusively from premium income collected by the agency for seismic rehabilitation loan loss guarantees issued under this chapter. No other moneys of the agency shall be liable for repayment of the loan from the Local Agency Indebtedness Fund. The loan authorized, along with accrued interest, shall be due and payable not later than one year from the date of expiration of the last outstanding loan loss guarantee issued, or not later than January 1, 2010, whichever comes first, or unless the Legislature extends the sunset provision of this program because of the success and continuing need for the program.
(c)  Moneys transferred to the agency under this section may be used to create reserves for loan loss guarantees authorized by this chapter and for the initial administrative expenses of the program which are not offset by premium income.
(Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993. Conditionally inoperative as provided in Section 51687.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 4 - BOND AND LOAN INSURANCE › CHAPTER 6 - Loan Loss Guarantee Program › Section 51686.

51686. In addition to the powers expressly granted by this chapter, the agency shall have all the powers granted under this part in administering this program which are not inconsistent with this chapter.
(Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993. Conditionally inoperative as provided in Section 51687.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 4 - BOND AND LOAN INSURANCE › CHAPTER 6 - Loan Loss Guarantee Program › Section 51687.

51687. This chapter shall be inoperative if moneys are not transferred to the fund pursuant to Section 51685.5 for the purposes defined in Section 51680.
(Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993. Note: Termination clause affects Chapter 6, commencing with Section 51680.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 5 - LOCAL HOUSING FINANCE AGENCIES › CHAPTER 1 - Legislative Findings and Declarations › Section 52000.

52000. The Legislature finds and declares that the subject of housing is of vital importance to the health, safety, and welfare of the residents of this state, for the following reasons:
(a)  Decent housing is an essential motivating force in helping people achieve self-fulfillment in a free and democratic society.
(b)  Unsanitary, unsafe, overcrowded, or congested dwelling accommodations constitute conditions which cause an increase in and spread of, disease and crime.
(c)  A healthy housing market is one in which residents of this state have a choice of housing opportunities and one in which the housing consumer may effectively choose within the free marketplace.
(Added by Stats. 1979, Ch. 1069.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 5 - LOCAL HOUSING FINANCE AGENCIES › CHAPTER 1 - Legislative Findings and Declarations › Section 52001.

52001. The Legislature finds and declares that there exists within the state a serious shortage of decent, safe, and sanitary housing which is affordable to many persons in the state. This shortage is exacerbated during periods of rising interest rates, particularly as high interest rates have the effect of diminishing the number of otherwise creditworthy buyers from qualifying for private sector mortgage capital sources. In order to remedy this adverse effect on potential home buyers on the lower end of the purchasing spectrum, it is necessary to implement a public program to reduce the cost of mortgage financing for single-family purchases for those persons unable to compete for mortgage financing in the conventional mortgage market.
(Added by Stats. 1979, Ch. 1069.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 5 - LOCAL HOUSING FINANCE AGENCIES › CHAPTER 1 - Legislative Findings and Declarations › Section 52002.

52002. The Legislature finds and declares that it is necessary and essential that counties and cities be authorized to directly or indirectly make long-term, low-interest loans to persons not presently eligible for financing through private sector lending institutions to finance construction, rehabilitation, and acquisition of homes in order to encourage investment and upgrade local areas.
(Added by Stats. 1979, Ch. 1069.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 5 - LOCAL HOUSING FINANCE AGENCIES › CHAPTER 1 - Legislative Findings and Declarations › Section 52003.

52003. The Legislature finds and declares that in order to preserve a healthy housing market and avoid a two-tier market where publicly subsidized mortgage capital supplants mortgage capital supplied by private financial institutions, it is necessary for the lending programs of cities and counties to be sufficiently targeted to avoid competition with private sector mortgage lenders, and further that revenue bond financing of mortgage lending by cities and counties be reasonably constrained to avoid disruption of bond markets and the credit standing of the state and its political subdivisions.
(Added by Stats. 1979, Ch. 1069.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 5 - LOCAL HOUSING FINANCE AGENCIES › CHAPTER 1 - Legislative Findings and Declarations › Section 52004.

52004. The Legislature finds and declares that the present shortage of decent, safe, and sanitary housing available to potential purchasers in the lower end of the buying spectrum is particularly inimical to the health of the housing economy and, with few exceptions, beyond the capability of private enterprise acting alone to cure, and a public purpose is served by public-private efforts to reduce cost of financing single-family homes for this class of purchasers.
(Added by Stats. 1979, Ch. 1069.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 5 - LOCAL HOUSING FINANCE AGENCIES › CHAPTER 1 - Legislative Findings and Declarations › Section 52005.

52005. The Legislature finds and declares that the revenue bonds provided for in this part are to be used to complement and not compete with home loans made from private sector sources, so as to substantially lower the cost of single-family home financing and meet a demand for housing financing which cannot otherwise be met.
(Added by Stats. 1979, Ch. 1069.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 5 - LOCAL HOUSING FINANCE AGENCIES › CHAPTER 1 - Legislative Findings and Declarations › Section 52006.

52006. The Legislature finds and declares that the authority to issue revenue bonds to aid in the financing of home purchase is needed in the cities and the counties of the state and that it is in the public interest and serves a public purpose by providing financing for decent, safe, and sanitary housing that people in the lower end of the purchasing spectrum can afford and is a function pertaining to the government and affairs of the cities and the counties of the state.
(Added by Stats. 1979, Ch. 1069.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 5 - LOCAL HOUSING FINANCE AGENCIES › CHAPTER 1 - Legislative Findings and Declarations › Section 52007.

52007. The Legislature finds and declares that the establishment of basic procedures for the issuance of revenue bonds to finance the purchase of residential housing and the costs of home ownership is necessary and desirable to provide clarity in law and direction for subsequent actions.
(Added by Stats. 1979, Ch. 1069.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 5 - LOCAL HOUSING FINANCE AGENCIES › CHAPTER 1 - Legislative Findings and Declarations › Section 52008.

52008. The Legislature finds and declares that the construction of federally assisted housing for persons and families of low or moderate income is not a primary purpose of this part. However, nothing in this part shall be deemed to prohibit financing of federally assisted housing for persons and families of low or moderate income.
(Added by Stats. 1979, Ch. 1069.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 5 - LOCAL HOUSING FINANCE AGENCIES › CHAPTER 1 - Legislative Findings and Declarations › Section 52009.

52009. The Legislature finds and declares all of the following:
(a)  The ownership and occupancy of a home is a fundamental element in the fabric of the American way of life.
(b)  The rapid appreciation in the value of homes in California which has occurred and is accelerating in recent years has made it impossible for many young persons and families who have never owned their own home to obtain the necessary financing to purchase their own home.
(c)  Rising costs and resulting inability of first-time homebuyers to purchase their first home is inimical to the welfare of a substantial segment of the population and, with few exceptions, beyond the capability of private enterprise acting alone to cure, and a public purpose is served by facilitating the entry into the housing market of first-time homebuyers who would be unable to finance the purchase of their first home without the kind of financial assistance provided by this part.
(d)  Authorization for the making of home mortgages to first-time homebuyers by cities and counties under this part will enable many persons and families who are otherwise unable to do so to take out a loan for the purpose of becoming a homeowner for the first time.
(Added by Stats. 1990, Ch. 1297, Sec. 1.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 5 - LOCAL HOUSING FINANCE AGENCIES › CHAPTER 2 - Definitions › Section 52010.

52010. Unless otherwise indicated by the context, the definitions contained in this chapter shall govern the construction of this part. The definitions contained in Chapter 2 (commencing with Section 50050) of Part 1 of this division shall not be applicable to this part, except as expressly and otherwise provided.
(Added by Stats. 1979, Ch. 1069.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 5 - LOCAL HOUSING FINANCE AGENCIES › CHAPTER 2 - Definitions › Section 52011.

52011. “Bonds” means the revenue bonds authorized under this part and includes notes and any and all other limited obligations or evidences of indebtedness payable as provided in this part.
(Added by Stats. 1979, Ch. 1069.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 5 - LOCAL HOUSING FINANCE AGENCIES › CHAPTER 2 - Definitions › Section 52011.5.

52011.5. “City” or “county” includes a city and county and also includes any agency created by a joint powers agreement under Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code entered into by cities or counties, or both, for the express purpose of the joint exercise of their powers under this part.
(Amended by Stats. 1981, Ch. 1097.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 5 - LOCAL HOUSING FINANCE AGENCIES › CHAPTER 2 - Definitions › Section 52012.

52012. “Home” means real property and improvements thereon consisting of a single dwelling unit and which is owned by a mortgagor who occupies or intends to occupy the unit. “Home” includes an owner-occupied condominium unit, a unit in a stock cooperative where the occupant is a shareholder, and any dwelling structure consisting of two-, three-, or four-family dwelling units, one unit of which is occupied by the owner of the units, and, which units were first occupied as homes at least five years before the mortgage with respect to the owner-occupied unit is executed.
(Amended by Stats. 1987, Ch. 497, Sec. 1.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 5 - LOCAL HOUSING FINANCE AGENCIES › CHAPTER 2 - Definitions › Section 52012.5.

52012.5. For purposes of this chapter, “first-time homebuyer” means a person who is a purchaser of an owner-occupied housing unit and who neither has, nor has had, a present ownership in a principal residence at any time during the three-year period prior to the date on which the mortgage governed by this chapter is executed.
Criteria established pursuant to subdivision (c) of Section 52020.5 shall include criteria for qualification of first-time homebuyers which need not include the criteria required for qualification of other mortgagors as set forth in subdivision (d) of Section 52020.5.
(Added by Stats. 1990, Ch. 1297, Sec. 2.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 5 - LOCAL HOUSING FINANCE AGENCIES › CHAPTER 2 - Definitions › Section 52013.

52013. (a) “Home mortgage” or “mortgage” means an interest-bearing loan made as provided in this part to a mortgagor, whether originated in the manner provided in subdivision (a) or (b) of Section 52020 that is evidenced by a promissory note and secured by a mortgage, deed of trust, or other security instrument on a home, and that may but is not required to be additionally secured by insurance on the payment of the note for the purpose of purchasing, constructing, or improving a home that meets either of the following criteria:
(1) Is newly constructed or is being rehabilitated and that, in either case, is located within an area or neighborhood in which the city or county is conducting a housing rehabilitation or code enforcement program, a neighborhood preservation area or concentrated rehabilitation area designated pursuant to this division, an area for which federal funds are being made available, or a residential rehabilitation area as defined in Section 37912. However, a loan may be made for the purchase of a newly constructed home anywhere within the city or county if the purchase is in connection with a program adopted by ordinance of the city or county the purpose of which is to increase the housing supply.
(2) Is a home upon which no rehabilitation is being undertaken in connection with any financing pursuant to this part, where the purchaser will not be the first occupant, and that is located within the city or county making or purchasing the home mortgage.
(b) A “home mortgage” or “mortgage” shall not include a loan to a mortgagor for the purpose of refinancing an existing obligation of the mortgagor, unless substantial rehabilitation is to be undertaken in connection with the loan.
(c) This section shall become operative January 1, 2012.
(Amended (as added by Stats. 2008, Ch. 283, Sec. 2) by Stats. 2009, Ch. 140, Sec. 117. (AB 1164) Effective January 1, 2010. Section operative January 1, 2012, by its own provisions.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 5 - LOCAL HOUSING FINANCE AGENCIES › CHAPTER 2 - Definitions › Section 52014.

52014. “Lending institution” means any bank, trust company, savings bank, national banking association, savings and loan association, building and loan association, mortgage banker, or other financial institution or governmental agency which customarily provides service or otherwise aids in the financing of home mortgages, or any holding company for any of the foregoing.
(Added by Stats. 1979, Ch. 1069.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 5 - LOCAL HOUSING FINANCE AGENCIES › CHAPTER 2 - Definitions › Section 52015.

52015. “Mortgagor” means a person or persons who have received a home mortgage on a home and who are deemed by a city or county conducting a program under this part to be a person or family of low or moderate income and unable to pay the amounts at which unassisted private enterprise is providing suitable, decent, safe, and sanitary housing.
(Added by Stats. 1979, Ch. 1069.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 5 - LOCAL HOUSING FINANCE AGENCIES › CHAPTER 2 - Definitions › Section 52015.5.

52015.5. “Mortgagor” means a person or persons who have received a home mortgage on a home and who are deemed by the City of Gardena under this part to be either a person or family of low or moderate income or a first-time homebuyer, who is unable to pay the amounts at which unassisted private enterprise is providing suitable, decent, safe, and sanitary housing.
(Added by Stats. 1990, Ch. 1297, Sec. 4.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 5 - LOCAL HOUSING FINANCE AGENCIES › CHAPTER 2 - Definitions › Section 52016.

52016. “Person” means any individual, partnership, copartnership, firm, company, corporation, limited liability company, lending institution, association, joint stock company, trust, estate, political subdivision, state agency or any other legal entity, or its legal representatives, agents or assigns.
(Amended by Stats. 1994, Ch. 1010, Sec. 171. Effective January 1, 1995.)
2023 California Code › Health and Safety Code - HSC › DIVISION 31 - HOUSING AND HOME FINANCE › PART 5 - LOCAL HOUSING FINANCE AGENCIES › CHAPTER 3 - Home Financing › Section 52021.

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.
(Added by Stats. 1979, Ch. 1069.)