SECTIONS 50197.1-50199.2 - California Statutes

HEALTH AND SAFETY CODE

SECTION 50197.1-50199.2

50197.1. An issuer may establish a mortgage credit certificate
program pursuant to this article.

50197.2. (a) An issuer shall notify the committee if the issuer
elects to exchange all or part of the issuer's authority to issue
qualified mortgage bonds for authority to issue mortgage credit
certificates. The notification shall include a statement which does
both of the following:
(1) Specifies the amount of the qualified mortgage bond authority
that the issuer will not be issuing in order to issue mortgage credit
certificates.
(2) Explains how the issuer shall assure that the dollar amount of
mortgage credit certificate authority will not be exceeded.
(b) An issuer may revoke the election if the issuer notifies the
committee that it cannot successfully carry out that exchange.

50197.3. A mortgage credit certificate may be issued under a
mortgage credit certificate program by a local agency pursuant to
this chapter and the federal act, as defined by paragraph (2) of
subdivision (f) of Section 50176.

50197.5. Any local agency may, upon the approval of the California
Debt Limit Allocation Committee pursuant to subdivision (d) of
Section 8869.85 of the Government Code, by written agreement assign
to any other issuer having the authority to issue qualified mortgage
bonds under the laws of this state all or any part of the local
agency's allocation pursuant to Sections 50189, 50190, and 50191 for
the calendar year. Under the assignment, the issuer shall agree to
issue mortgage credit certificates to qualifying homeowners of
property located within the territory of the assigning local agency,
provided however that if, after a reasonable attempt and for reasons
beyond the control of the issuer, the issuer is unable to issue all
of the assigned certificates to homeowners of property located within
the territory of the assigning local agency, any remaining
certificates may be issued to qualifying homeowners of property
located within the county within which the assigning local agency is
located.

50197.7. If an issuer elects to exchange all or part of a
supplementary allocation of qualified mortgage bonds for authority to
issue mortgage credit certificates, the issuance of those mortgage
credit certificates shall be subject to the restriction imposed by
subdivision (b) of Section 50189.

50198. The requirement that public notice be given that mortgage
credit certificates will be issued, prescribed by Section 25(e)(5) of
Title 25 of the United States Code, may be satisfied by the issuer
or its lenders advertising their issuance at least 90 days prior to
the issuance of any mortgage credit certificate. If an issuer is
required to file an application with the committee for a qualified
mortgage bond allocation, it may commence advertising for the
issuance of a mortgage credit certificate on the day it files its
application with the committee.

50198.5. An issuer shall develop and maintain a list of lenders
that have entered into an agreement with the issuer who will make
loans to qualified holders of mortgage credit certificates, as
provided by the federal act, as defined by paragraph (2) of
subdivision (g) of Section 50176.

50199. Notwithstanding any other provision of law, after a list of
lenders has been completed by an issuer, after the qualified mortgage
bond allocation has been approved by the committee, and after the
issuer has made the election to exchange all or part of the issuer's
authority to issue qualified mortgage bonds for authority to issue
mortgage credit certificates, the issuer and its lenders shall have
90 days after the allocation is granted by the committee to
establish, and file with the committee, a mortgage credit certificate
program.

50199.2. Any issuer that establishes a mortgage credit certificate
program may charge a fee which is reasonably sufficient to cover the
costs of administering that program.