State Funds for Veterans

In the Military and Veterans Code, Division 4, Chapter 6, Article 3.5, certain funds are made available as state benefits for veterans in California.

Section 988 established in the State Treasury a revolving fund known as the Veterans’ Farm and Home Building Fund of 1943. All moneys deposited in the fund are subject to the provisions of this article. Money may be withdrawn from the fund in accordance with law upon requisition of the department.

Section 988.1 requires the money paid by purchasers to be deposited in the Veterans’ Farm and Home Building Fund of 1943 and be available for the purpose of carrying out the provisions of this article.

Section 988.2 defines the term “purchaser.” Out of any money available in the Veterans’ Farm and Home Building Fund of 1943, the department may advance to any purchaser upon their application, and under the policies as the department may prescribe, sums for the purpose of paying taxes and assessments, or making permanent improvements, including permanent improvements for the purpose of increasing farm productivity, or for keeping in good order or repair, or for painting, redecorating, or remodeling, all buildings, fences, or other permanent improvements on, or the insuring against fire or other hazards, any building, fence, or other permanent improvement, or crops on the property being purchased from the department, or the department may advance to the purchaser moneys actually expended in so doing.

The moneys advanced may be in addition to the maximum purchase price of a farm or home as provided by the Veterans’ Farm and Home Purchase Act of 1974. Any money required by the department to be paid for the purpose of taxes, insurance premiums, and other charges when they become due may be maintained by the department using the escrow accounting method in accordance with lending industry standards and the laws governing escrow accounts of this type.

Section 988.3 authorizes the Department of Finance to make advances of money to the department, needed to meet contingent expenses, of not more than $50,000, as the Department of Finance determines necessary, and may make advances of money to the department, needed to carry out specified duties of not more than $25,000,000.

Section 988.4 defines the term “purchaser.” Out of any money available in the Veterans’ Farm and Home Building Fund of 1943, the department may advance to a purchaser upon their application, and under the policies as the department may prescribe, sums for the purpose of making alterations, repairs, or improvements on or in connection with the principal place of residence of the purchaser. The department may secure that advance by issuing a deed of trust, a promissory note, or other security interest that is subordinate to any existing financing on the principal place of residence of the purchaser.

Section 988.5 requires all loans granted to be funded in accordance with federal laws governing the use of tax-exempt bonds.

Section 988.6 established in the State Treasury a revolving special fund known as the Veterans’ Bonds Payment Fund. All moneys in this fund are used solely to pay debt service, when due on bonds issued pursuant to all veterans’ farm and home purchase bond acts pursuant to this chapter, all moneys in this fund are continuously appropriated for this purpose.

Section 988.7 specifies that all moneys in the California National Guard Members’ Farm and Home Building Fund of 1978 and any other account created in that fund that are not needed to meet revenue bond obligations are to be deposited into the Veterans’ Farm and Home Building Fund of 1943 within 30 days after the effective date of this section.