(a) Notwithstanding any other provision of law, the board may establish a program utilizing the retirement fund to assist system members, through financing, to obtain homes throughout the United States.
(b) For the purpose of this section, the term “member” means any person who is receiving, or is entitled to receive, a retirement allowance funded by this system, the Legislators’ Retirement System, the Judges’ Retirement System, or the Judges’ Retirement System II, notwithstanding any vesting requirement and without regard to present eligibility to retire.
(c) The board shall adopt regulations governing the program that shall, among other things, provide:
(1) That home loans be made available to members for the purchase of single-family dwellings, two-family dwellings, three-family dwellings, four-family dwellings, single-family cooperative apartments, and single-family condominiums.
(2) That private lending institutions throughout the United States shall originate and service its home loans pursuant to agreements entered into between those institutions and the board.
(3) That the recipients of the loans occupy the homes as their permanent residences in accord with rules and regulations established by the board.
(4) That its home loans shall be available only for the purchase or refinancing of homes throughout the United States and that under no condition shall a member have more than one outstanding loan.
(5) That the amount and length of the loans shall be pursuant to a schedule periodically established by the board that shall provide a loan-to-value ratio of no greater than the following:
(A) One hundred percent for the first loan for a single-family dwelling, single-family cooperative apartment, or single-family condominium.
(B) Ninety-five percent for the first loan on a two-family dwelling.
(C) Ninety percent for the first loan on a three-family dwelling or four-family dwelling.
The portion of any loan exceeding 80 percent of value shall be insured by an admitted mortgage guaranty insurer conforming to Chapter 2A (commencing with Section 12640.01) of Part 6 of Division 2 of the Insurance Code, in an amount so that the unguaranteed portion of the loan does not exceed 75 percent of the market value of the property together with improvements thereon.
(6) That there may be prepayment penalties assessed on its loans in accordance with rules and regulations established by the board.
(7) That the criteria and terms for its loans shall provide the greatest benefit to members consistent with the financial integrity of the program and the sound investment of the retirement fund.
(8) Any other terms and conditions as the board shall deem appropriate.
(d) This section shall be known as, and may be cited as, the Dave Elder Public Employees’ Retirement System Member Home Loan Program Act.
(Amended by Stats. 2003, Ch. 97, Sec. 1. Effective January 1, 2004.)