Shared Appreciation LoansLegislative Findings and Declarations

Section § 1917.110

Explanation

This law highlights the importance of finding new ways to provide affordable housing in California. It notes that because of unpredictable economic changes, like fluctuating interest rates, traditional fixed-rate mortgages aren't always practical. The law suggests creating new types of loans, like shared appreciation loans, could help finance homes and boost job creation in construction.

The Legislature hereby finds and declares that:
(a)CA Civil Law Code § 1917.110(a) It is necessary and essential that the state provide and promote alternative means of supplying affordable housing to the citizens of the state.
(b)CA Civil Law Code § 1917.110(b) Because of current economic conditions, including the unprecedented fluctuation in interest rates, alternative mortgage instruments must be developed to supplement the standard long-term, fixed-rate mortgage.
(c)CA Civil Law Code § 1917.110(c) State facilitation of the shared appreciation loan will serve the need to develop alternative means of financing housing, particularly new homes, and will help to create vitally needed jobs in the construction industry.
affordable housing alternative mortgage instruments interest rate fluctuation ...