Bill Text: CA AB630 | 2009-2010 | Regular Session | Amended
Bill Title: California Homebuyer's Downpayment Assistance Program:
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-02-02 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB630 Detail]
Download: California-2009-AB630-Amended.html
BILL NUMBER: AB 630 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 7, 2009
INTRODUCED BY Assembly Member Salas
FEBRUARY 25, 2009
An act to add Section 1714.23 to the Civil Code, relating
to liability. An act to amend Section 51504 of the
Health and Safety Code, relating to housing.
LEGISLATIVE COUNSEL'S DIGEST
AB 630, as amended, Salas. Immunity: dentistry
volunteers. California Homebuyer's Downpayment
Assistance Program: downpayment assistance: subordination.
Existing law requires the California Housing Finance Agency to
administer the California Homebuyer's Downpayment Assistance Program
for the purpose of assisting first-time low- and moderate-income home
buyers utilizing existing mortgage financing. Under the program, the
amount of the downpayment assistance is due and payable at the end
of the term or upon sale of or refinancing of the home.
This bill would authorize the agency, in its discretion, to permit
the downpayment assistance loan to be subordinated to refinancing if
it determines that certain criteria have been met. The bill would
authorize the agency to permit subordination on such terms and
conditions as it determines are reasonable.
Existing law affords immunity to a health care provider from
liability for professional negligence or malpractice for an
occurrence or result solely on the basis that the occurrence or
result was caused by the natural course of a disease or condition or
was the natural or expected result of reasonable treatment rendered
for the disease or condition.
This bill would extend similar immunity to retired dental
professionals who in good faith provide dental care on a volunteer
basis to persons who are members of dentally underserved populations,
as defined, or who live in dentally underserved areas, as defined.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 51504 of the Health
and Safety Code is amended to read:
51504. (a) The agency shall administer a downpayment assistance
program that includes, but is not limited to, all of the following:
(1) Downpayment assistance shall include, but not be limited to, a
deferred-payment, low-interest, junior mortgage loan to reduce the
principal and interest payments and make financing affordable to
first-time low- and moderate-income home buyers.
(2) (A) Except as provided in subparagraph (B) or (C), the amount
of downpayment assistance shall not exceed 3 percent of the home sale
price.
(B) The amount of downpayment assistance for a new home within an
infill opportunity zone, as defined in Section 65088.1 of the
Government Code, a transit village development district, as defined
in Section 65460.4 of the Government Code, or a transit-oriented
development specific plan area, as defined in paragraph (6), shall
not exceed 5 percent of the purchase price or the appraised value,
whichever amount is less, of the new home. The borrower of the
downpayment assistance shall provide the lender originating the loan
with a certification from the local government agency administering
the infill opportunity zone, the transit village development
district, or the transit-oriented development specific plan area that
states that the property involved in the loan transaction is within
the boundaries of either the infill opportunity zone, the transit
village development district, or the transit-oriented development
specific plan area.
(C) Notwithstanding paragraph (1), the agency may, but is not
required to, provide downpayment assistance that does not exceed 6
percent of the home sale price to first-time low-income home buyers
who, as documented to the agency by a nonprofit organization that is
certified and funded to provide home ownership counseling by a
federally funded national nonprofit corporation, are purchasing a
residence in a community revitalization area targeted by the
nonprofit organization as a neighborhood in need of economic
stimulation, renovation, and rehabilitation through efforts that
include increased home ownership opportunities for low-income
families. The agency shall not use more than six million dollars
($6,000,000) in funds made available pursuant to Section 53533 for
the purposes of this paragraph.
(3) The amount of the downpayment assistance shall be secured by a
deed of trust in a junior position to the primary financing
provided. The term of the loan for the downpayment assistance shall
not exceed the term of the primary loan.
(4) The (A) Except
as provided in subparagraph (B), the amount of the downpayment
assistance shall be due and payable at the end of the term or upon
sale of or refinancing of the home. The borrower may refinance the
mortgages on the home provided that the principal and accrued
interest on the junior mortgage loan securing the downpayment
assistance are repaid in full. All repayments shall be made to the
agency to be reallocated for the purposes of this chapter.
(B) 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
such terms and conditions as it determines are reasonable.
(5) The agency may use up to 5 percent of the funds appropriated
by the Legislature for purposes of this chapter to administer this
program.
(6) For the purposes of this section, "transit-oriented
development specific plan area" means a specific plan that meets the
criteria set forth in Section 65451 of the Government Code, is
centered around a rail or light-rail station, ferry terminal, bus
hub, or bus transfer station, and is intended to achieve a higher
density use of land that facilitates use of the transit station.
(b) In addition to the downpayment assistance program authorized
by subdivision (a), the agency may, at its discretion, use not more
than seventy-five million dollars ($75,000,000) of the funds
available pursuant to this chapter to finance the acquisition of land
and the construction and development of for-sale residential
structures, through short-term loans pursuant to its authority
pursuant to Section 51100. However, the agency shall make downpayment
assistance provided pursuant to paragraph (1), subparagraphs (A) and
(B) of paragraph (2), and paragraphs (3) to (5), inclusive, of
subdivision (a) the priority use for these funds. A loan made
pursuant to this section is not subject to Article 4 (commencing with
Section 51175) of Chapter 5.
SECTION 1. Section 1714.23 is added to the
Civil Code, to read:
1714.23. (a) No person licensed pursuant to Chapter 4 (commencing
with Section 1600) of Division 2 of the Business and Professions
Code, who is retired from the active practice of dentistry other than
as described in this section retired, who in good faith provides
dental care on a volunteer basis to persons who are members of a
dentally underserved population or in a dentally underserved area,
shall be liable for professional negligence or malpractice for any
occurrence or result solely on the basis that the occurrence or
result was caused by the natural course of a dental disease or
condition, or was the natural or expected result of reasonable
treatment rendered for a dental disease or condition. This section
shall not be construed so as to limit liability for the failure to
inform of the risks of treatment or failure to accept treatment, or
for negligent diagnosis or treatment or the negligent failure to
diagnose or treat a dental disease or condition.
(b) As used in this section:
(1) "Dentally underserved area" means a geographic area eligible
to be designated as having a shortage of dental professionals
pursuant to Part I of Appendix B to Part 5 of Title 42 of the Code of
Federal Regulations or an area of the state where unmet priority
needs for dentists exist as determined by the California Healthcare
Workforce Policy Commission pursuant to Section 128224 of the Health
and Safety Code.
(2) "Dentally underserved population" means persons without dental
insurance and persons eligible for the Denti-Cal and Healthy
Families Programs who are members of population groups described as
having a shortage of dental care professionals in Part II of Appendix
B to Part 5 of Title 42 of the Code of Federal Regulations.
