Chapter 6. California Housing Finance Agency Assistance In Issuing City And County Revenue Bonds For Home Mortgages of California Health And Safety Code >> Division 31. >> Part 5. >> Chapter 6.

This chapter constitutes an alternative method for cities and counties to issue revenue bonds for providing home mortgages pursuant to the provisions of Chapters 1 (commencing with Section 52000) to 5 (commencing with Section 52051), inclusive.

The agency, and any city or county, or a city and a county, may enter into an agreement which provides that the agency sell bonds on behalf of any such city or county, or for such city and such county, for the purpose of providing funds for home mortgages.

Any agreement made pursuant to Section 52061 shall contain provisions doing all of the following:
  (a) Limiting the maximum amount of bonds to be issued by a city or county.
  (b) Requiring that the city, or county, or each city and county that is a party to the agreement, not issue additional bonds for home mortgage loans within a period of three years from the date of the bonds issued pursuant to the agreement, or until all of the proceeds of those bonds have been used to make home mortgage loans, without the express written consent of the agency.
  (c) Requiring that all bonds and any prospectus in connection with those bonds contain a legend condition to the following effect: "Neither the faith and credit of the State of California or the agency nor the taxing power of the state is pledged to the payment of principal or interest on this bond."
  (d) Requiring agency approval of the bond counsel of the city or county, or the bond counsel of each city and county that is a party to the agreement.
  (e) Designating, consistent with the agency's program for financing residential structures of four units or less authorized by Article 2 (commencing with Section 51125) of Chapter 5 of Part 3 and the regulations adopted pursuant thereto, maximum sales prices of homes, maximum loan amounts for home mortgages involving rehabilitation and refinancing, borrower eligibility criteria, geographic areas where loans can be made, insurance requirements, the minimum percentage of bond proceeds to be utilized for home mortgages involving new construction and rehabilitation and the amount to be allocated to a bond reserve fund.

Any agreement pursuant to Section 52061 may provide any or all of the following:
  (a) That the agency will provide, either directly or through agency approved lending institutions, for the origination and servicing of home mortgage loans.
  (b) For the payment of fees and expenses in connection with the issuing of bonds.
  (c) For any matter described in Section 51355 relating to agency bonds.

Subject only to the other provisions of this chapter and to any agreement between the agency and city or county, the provisions of Chapter 4 (commencing with Section 52030) shall be applicable to any issuer and to any bonds issued pursuant to the authority of this chapter.

Bonds issued pursuant to this chapter shall not be deemed issues of the agency for any purpose, including being counted within any calculation of the agency's bonding authority limitations now or hereafter established by law.

Bonds of more than one city or county may be pooled for purposes of issuance and bond proceeds, reserved or other security for the bonds, including, but not limited to, loan or loan participation, made or derived from bond proceeds, may likewise be pooled to secure the issuance of any such bonds.