SENIOR ASSEMBLY FEDERAL PROPOSAL NO. 9

INTRODUCED BY SENIOR ASSEMBLY MEMBER GIVENS

LEGISLATIVE COUNSEL'S DIGEST

AFP 9: MOBILHOMES: REVERSE MORTGAGES.

UNDER EXISTING LAW, THE UNITED STATES FEDERAL HOUSING ADMINISTRATION ADMINISTERS THE HOME EQUITY CONVERSION MORTGAGE PROGRAM WHICH ALLOWS BORROWERS WHO ARE 62 YEARS OF AGE AND OLDER TO CONVERT THE EQUITY IN THEIR HOMES INTO A MONTHLY STREAM OF INCOME OR LINE OR CREDIT. UNDER EXISTING LAW, MOBILEHOMES BUILT PRIOR TO JUNE 15, 1976, DO NOT QUALIFY FOR REVERSE MORTGAGES AND ARE EXCLUDED FROM THE FEDERAL PROGRAM.

THIS MEASURE WOULD MEMORIALIZE THE CONGRESS AND THE PRESIDENT TO ENACT LEGISLATION THAT WOULD REVISE FEDERAL REGULATIONS REGARDING REVERSE MORTGAGE CONDITIONS TO INCLUDE MOBILEHOMES CONSTRUCTED PRIOR TO JUNE 15, 1976.

VOTE: MAJORITY.

AFP 9: RELATING TO MOBILEHOMES

WHEREAS, THE UNITED STATES FEDERAL HOUSING ADMINISTRATION ADMINISTERS THE HOME EQUITY CONVERSION MORTGAGE PROGRAM WHICH ALLOWS BORROWERS WHO ARE 62 YEARS OF AGE AND OLDER TO CONVERT THE EQUITY IN THEIR HOMES INTO A MONTHLY STREAM OF INCOME OR LINE OF CREDIT; AND

WHEREAS, THE REVERSE MORTGAGES UNDER THE FEDERAL PROGRAM PROVIDE A VALUABLE FINANCING ALTERNATIVE FOR ELDERLY HOMEOWNERS; AND

WHEREAS, UNDER CURRENT FEDERAL REGULATIONS OF THE FEDERAL HOUSING ADMINISTRATION, MOBILEHOMES BUILT PRIOR TO JUNE 15, 1976, CURRENTLY DO NOT QUALIFY FOR REVERSE MORTGAGES; AND

WHEREAS, MANY MOBILEHOMES BUILT PRIOR TO JUNE 15, 1976, THAT ARE LOCATED ON LAND OWNED BY THE HOMEOWNER AND ON A PERMANENT FOUNDATION ARE IN EXCELLENT CONDITION AND OFTEN TIMES ARE STURDIER AND BETTER CONSTRUCTED THAN THOSE BUILT AFTER 1976; AND

WHEREAS, THOUSANDS OF SENIORS ACROSS THE COUNTRY COULD BE USING EQUITY IN THEIR HOMES TO HAVE A BETTER LIFE AND CEASE RELIANCE ON FINANCIAL ASSISTANCE FROM THE STATE, NATION, OR THEIR FAMILIES; AND

WHEREAS, IN ADDITION TO PROVIDING A SOURCE OF INCOME FOR SENIORS, ALLOWING MOBILEHOMES BUILT PRIOR TO JUNE 15, 1976, TO QUALIFY FOR REVERSE MORTGAGES WOULD RESULT IN INCREASED HOME INSPECTIONS AND REPAIRS, THEREBY CREATING ADDITIONAL JOBS; NOW, THEREFORE, BE IT

RESOLVED, BY THE SENIOR ASSEMBLY AND THE SENIOR SENATE, JOINTLY, THAT THE SENIOR LEGISLATURE OF THE STATE OF CALIFORNIA AT ITS 2009 REGULAR SESSION, A MAJORITY OF THE MEMBERS VOTING THEREFOR, HEREBY PROPOSES THAT FEDERAL REGULATIONS REGARDING REVERSE MORTGAGE CONDITIONS BE REVISED TO INCLUDE MOBILEHOMES CONSTRUCTED PRIOR TO JUNE 15, 1976; AND BE IT FURTHER

RESOLVED, THAT THE SENIOR LEGISLATURE OF THE STATE OF CALIFORNIA RESPECTFULLY MEMORIALIZES THE CONGRESS AND THE PRESIDENT TO ENACT APPROPRIATE LEGISLATION THAT WOULD ADDRESS THE CONCERNS SET FORTH IN THIS MEASURE; AND BE IT

FURTHER RESOLVED, THAT A COPY OF THIS MEASURE BE TRANSMITTED TO THE PRESIDENT AND VICE PRESIDENT, THE SPEAKER OF THE HOUSE OF REPRESENTATIVES, THE CHAIRPERSONS OF THE HOUSE AND SENATE COMMITTEES ON AGING, AND TO EACH SENATOR AND REPRESENTATIVE FROM CALIFORNIA IN THE CONGRESS OF THE UNITED STATES.

RN 09 16343

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