Section 51505 Of Chapter 11. California Homebuyer’s Downpayment Assistance Program From California Health And Safety Code >> Division 31. >> Part 3. >> Chapter 11.
51505
. (a) In addition to the downpayment assistance program
authorized by Section 51504, and notwithstanding any provision of
Section 51504 to the contrary, the agency shall provide downpayment
assistance from the funds set aside pursuant to subparagraph (D) of
paragraph (7) of subdivision (a) of Section 53533 for the purposes of
the portion of the Extra Credit Teacher Home Purchase Program
provided for in subdivision (g) of Section 8869.84 of the Government
Code and any other school personnel home ownership assistance
programs as set forth by the California Debt Limit Allocation
Committee, as operated by the agency. Notwithstanding the foregoing,
the agency may, but is not required to, provide downpayment
assistance pursuant to this section to any local issuer participating
in the Extra Credit Teacher Home Purchase Program and any other
school personnel home ownership assistance programs as set forth by
the California Debt Limit Allocation Committee.
(b) (1) Downpayment assistance for purposes of this section shall
be subject to, and shall meet the requirements of, the Extra Credit
Teacher Home Purchase Program and any other school personnel home
ownership programs as set forth by the California Debt Limit
Allocation Committee, and shall include, but not be limited to,
deferred payment, low interest rate loans.
(2) Except as provided in paragraphs (3) and (5), payment of
principal and interest is deferred until the time that the home is
sold or refinanced.
(3) The agency may, in its discretion, permit the downpayment
assistance loan to be subordinated to refinancing if it determines
that the borrower has demonstrated hardship, subordination is
required to avoid foreclosure, and the new loan meets the agency's
underwriting requirements. The agency may permit subordination on
those terms and conditions as it determines are reasonable, but
subordination is not permitted if the borrower has sufficient equity
to repay the loan.
(4) This downpayment assistance shall meet the requirements of
paragraph (3) of, and subparagraph (A) of paragraph (4) of,
subdivision (a) of Section 51504.
(5) The amount of the downpayment assistance shall not be due and
payable upon sale of the home if the first mortgage loan is insured
by the Federal Housing Administration (FHA) or if the first mortgage
loan is, or has been, transferred to the FHA, or if the requirement
is otherwise contrary to regulations of the United States Department
of Housing and Urban Development governing FHA insured first mortgage
loans.
(c) Loans made pursuant to this section may include a provision
whereby interest, principal, or both, of the loan is forgiven upon
conditions to be established by the agency, or any other provision
designed to carry out the purposes of the Extra Credit Teacher Home
Purchase Program and any other school personnel home ownership
programs as set forth by the California Debt Limit Allocation
Committee.
(d) Downpayment assistance pursuant to this section shall not
exceed the greater of seven thousand five hundred dollars ($7,500) or
3 percent of the home sales price. However, the agency may, with the
concurrence of the California Debt Limit Allocation Committee,
establish higher assistance limits as necessary to ensure sufficient
assistance to allow program participation in high cost areas.