Help Homeowners Add New Housing Program: accessory dwelling unit financing.

Existing law establishes the Capital Access Loan Program to assist qualified small businesses in financing the costs of complying with environmental mandates and the remediation of contamination on their properties, which is administered by the California Pollution Control Financing Authority. Under the program, the authority may enter into contracts with participating financial institutions and is required to establish a loss reserve account with each participating financial institution. Under the program, a participating financial institution that experiences a default on a qualified loan enrolled in the Capital Access Loan Program may obtain reimbursement from the authority by submitting a claim for reimbursement for a specified amount of the loss covered by that loan, subject to certain procedures. Existing law provides for the creation by local ordinance, or by ministerial approval if a local agency has not adopted an ordinance, of accessory dwelling units in areas zoned to allow single-family or multifamily dwelling residential use in accordance with specified standards and conditions. This bill, upon appropriation by the Legislature, would require the office of the Treasurer to establish and administer the Help Homeowners Add New Housing Program for the purpose of protecting participating financial institutions, as defined, from default on loans provided to a qualified homeowner to construct an accessory dwelling unit. The bill would require the office to establish various program requirements, including, among others, a minimum criteria for qualified loans that may be enrolled, a criteria for a financial institution to participate in the program, and the maximum percentage of the actual loss guaranteed under the program. The bill would authorize the office to contract with any financial institution for the purpose of allowing the financial institution to participate in the program, as specified. The bill would require the office to establish a loss reserve account for each participating financial institution that must consist of specified moneys. The bill would authorize a participating financial institution to enroll qualified loans in the program, subject to specified procedures, in order to obtain protection against default through the program. The bill would require the office to establish a procedure for a participating financial institution to submit a claim for reimbursement of losses incurred as a result of a default of an enrolled loan. This bill would establish the Accessory Dwelling Unit Access Fund in the State Treasury for the purpose of funding loss reserve accounts under the program and would make the moneys in the fund available upon appropriation by the Legislature. The bill would require the office to annually prepare a report to the Governor and the Legislature that describes the financial condition and programmatic results of the program, as specified. The bill would authorize the office to adopt necessary rules for carrying out its duties, functions, and powers relating to the program.