This Initiative is written straightforwardly in common language for better understanding; many sections have some commentary, they will be eventually removed; also, all sections are summarized to promote main points.
At the appropriate time, it will be interpreted into legal language demanded by state laws governing the Initiative Process.
That will take place before submittal to the proper state authority prior to petition and electoral promotion.
The Method is the Message!
FARE HOUSING
Affordable Housing Reform Initiative
Declaration of Intent
Freedom of Shelter in a Free Market is a Foundational Right! This Fare Housing Initiative will provide both home owners and renters with affordable housing and strengthen their economic foundation at a personal level, and stop the staggering statewide scourge of involuntary homelessness; these issues will be addressed in tandem through dignified, effective and efficient economic solutions that will not only pay for themselves, but also all involved parties will prosper and profit in many ways.
Fare Housing Reform Initiative Provisions
Fare Housing shall be administered and enforced by the proper authorities as stated further on in this Initiative. Once enacted, the Reform shall provide anyone with Shelter in a civil and constructive manner at a safe and sanitary level to meet common needs.
Provision A: Collection and Distribution of Fare Housing Funds
Section A.
Sub Section A I.
1. In order to promote affordable, safe and sanitary housing, this Fare Housing reform declares safe and sanitary housing to be a Civil Right; this initiative’s primary purpose is to establish within state constitutional law inexpensive financing for not only a secure “home base”, but to also provide a store of value which can be drawn upon by an individual home owner for essential needs to improve and protect their material lives and sense of wellbeing. Said store of value shall not exceed 30% of a home’s market value at the time such loans may be taken. These borrowed monies shall be added to principal or provable home equity.
Sub Section A II.
1. Fare Housing shall be conducted along these lines: The California Department of Treasury and the California State Franchise Tax Board shall have authority, as ordered by the State Treasurer, who will follow this Fare Housing Initiative, to insure the execution of this Initiative as stated. Commissions shall also have authority, via legislative demand, to insure the same for this Initiative. The granted authority and responsibility shall be clarified and delineated further on in the text of this Initiative.
2. Fare Housing funds shall be derived from financing or refinancing from applicants for the purpose of mortgages only. Applicants qualify within these income levels: up to 3 times the average state annual income; and have a demonstrable history of consistent mortgage or rent payments with adjusted future Fare Housing payments as the primary guiding influence of ability to stay current once mortgaged or refinanced. Financing or refinancing at these specified incomes will be for owner occupied homes only. This shall not impact rent levels or rental properties in any way outside of this Initiative; but, shall effect rental units resulting from funding provided through this Initiative.
Provision B: Financing, funding and refinancing methods.
Sub Section B I.
1. The California State Treasury and the California Franchise Tax Board, under the authority of the State Treasurer, shall accept home loan applications following current financing laws to verify applicants and properties. These agencies may also design applications to simplify this process as long as any redesign promotes the simple efficiency and goals of the Fare Housing Initiative reforms.Funding of these mortgages or refinancing shall be guaranteed, and if necessary, funded by the State of California Treasury and/or financial institutions provided applicants are qualified as stated in Sub Section A ll, 2.
2. These plans shall begin within 90 days of enactment of this initiative. During this same time line, financing funds shall be drawn from the general fund, or an “urgent specific budget” category established within the Initiative to accommodate qualified borrows. These borrowed general fund monies shall be replaced promptly after a mortgage is either sold to institutions, investors or held by the state in a designated special account of State Treasurer’s secure design, from which the monthly payments shall placed in those two funds. The state shall protect guaranteed collection of payments to grantors through enforcement of this initiative for grantee ownership obligations and responsibilities.
3. Fees may be applied to administer and for clerical maintenance. Such fees cannot exceed 1% annually, and if not paid with the monthly installment may be added to the mortgage principal but not effect the predetermined interest rate repayment. Annual interest rate shall be 3% and remain so upon the original mortgage amount including added monies borrowed up to 30% of mortgage value, no other interest shall apply in any other way. Second mortgages shall not be permitted within the scope of this Initiative, agreements between private parties shall be allowed but can only be adjudicated outside the scope this Initiative.
4. Detailed qualifications for this Fare Housing Initiative shall be: Those who are purchasing, own, refinance or rent and who earn the per capita income of $43,000 per person in a household of Fare Pay workers or a verifiable equivalent; dependents shall not be counted whether such individuals earn any kind legal income, disability or welfare-like vital support payments. Only those adults who are on title or rental agreement shall count in the per capita amount, per grantee on title limited to no more than two signors. The per capita equation mortgage payment shall be no more than 30% for those on title. Annual amount divided by 12 shall be the monthly mortgage payment. Length of mortgaged principle pay-off–no more than 50 years–shall determine the length of the mortgage itself.
5. This requirement is mandatory: Buyer must live in mortgaged home, if not, Fare Housing does not apply; outside of Fare Housing, cash or other financing methods shall be used as needed for agreements not covered by this Initiative.
Sub Section B lI.
Also, the following payment plans shall be available to mortgage grantees in repayment to the mortgage grantors:
1. Design of plans is to make ownership, and in it’s absence, even renting more affordable.
2. Without a down payment of 10%, it shall be added to principal and paid in full by the concluded mortgage time frame. And that 10% down payment shall be owed by the grantee(s) regardless of any circumstances concluding or the outcome of the mortgage.
3. Only if agreed upon by participating parties, a 20% share of equity only shall be received by the mortgage grantor, holder or investor upon sale of the property at any point, either to that investor class or their estate. This 20% shall not be added to principle.
4. The per capita amount of $43,000 per grantee is solely a measured starting point of qualifying; five times in total of that amount will be will be the cut off point; 10% of those results shall be the maximum annual payment divided by 12; no lower than 5% shall be permitted; and, will not be determined at all by the number of verifiable dependents within a given household, whether they receive any form of assistance or not, and shall not be linked to the five times per capita upper income limit per signee in any way.
Sub Section B llI.
Factory/Granny Flats: Mass production of manufactured modular units shall be funded in similar ways as purchased single housing, but shall be owned by various financial entities with sufficient resources large enough to engage in such rental properties. These mass produced manufactured units for rental housing placement shall be positioned in areas with sufficient infrastructure and space in place. Such projects shall take place after new or redesigned zoning, project planning with financial backing and approval by appropriate local authorities.
1. Except for out of plain sight private homes with granny flats, single home neighborhoods shall not be altered to lose their previous character for the sake of mortgaged or rental modular unit projects.
2. Areas to be utilized for rental units shall be within industrial areas and/or apartment, hotel and motel complexes as well as commercial retail sites. After conditions are met as stated in “Factory/Granny Flats” above, the areas stated here shall be utilized by any concerned investment parties, whether institutional or private, and shall be allowed to proceed with their projects. Legally appropriate local governance shall of course oversee, but local commissions shall also have the power to investigate, and if necessary use legislative demand, and judicial action, to promote such endeavors to completion as stated within this Initiative.
3. No more than 10% profit after actual and material cost of in place rental units per month shall be allowed; that equation will provide a return on investment annually at a rate of 120%–once the initial investment is paid off, rental units will still remain at that level afterward; unless the investor(s) lower the price by their own volition or an increase allowed by local authorities and local commissions. A maintenance fee of 1% monthly may also be charged at the owner’s discretion. Looked at in an additional way, rental rates shall cover the cost of construction, maintenance and placement, increased or lessened. If costs increase through demand, then supply must be increased; again, at the behest of local authorities and commissions.
4. In consideration of owner occupied mortgaged homes as formulated above, here is an illustrative example: Per $100,000 home mortgage value, with one or two grantees on loan docs and title, shall be: 10% of $43,000 as baseline, would be $4,300 Per $100,000 of mortgage value per year, divided by 12, which equals, rounded up to the nearest 10, $340. So, a mortgage valued at $500,000 would be 5 x $340 which equals $1,700 per month. A standard 30 year mortgage would reach a total of $612,000; this amount does not include grantor investment returns nor the 3% fixed interest rate which will increase a grantor’s return.
Based on other considerations and circumstantial factors, the mortgage payment could be less for that amount or the same for a higher amount.
Sub Section B IV.
For Fare Housing mortgages only, such considerations and circumstantial factors, or a combination, would be:
1. This option concerns interest only payments for limited times. At this first time only, the grantees’ shall solely have this option, and it shall be no more than one year unless grantee and grantor agree to a longer term. Any unpaid principle shall stay in place for the initial mortgage length.
2. Extended mortgage length is the initial sole choice of grantee(s) on title. If altered or changed after the initial choice, all parties must agree before any altered change occurs afterward because of involuntary or voluntary circumstances.
3. Equity sharing shall be allowed. Whether an increased or lessened equity share, that share cannot be changed without agreement of all parties involved.
4. Payment based joint ownership with family, friends, investors or live in renters shall also be allowed. Put in place by contractual agreement between all involved parties. All signatories will be legally libel for their share unless bought out by grantee or grantor, also by contractual agreement; other involved parties may buy the others’ share between themselves and in so doing assume responsibility for said debt.
Provision C: Governing Infrastructure and Fraud Penalties
Sub Section CI
Rezoning and zoning.
1. It is mandated within this initiative to rezone or zone areas for the efficient expansion of affordable housing and structure density determined by commissions and local governing bodies with new rezoning laws or existing zoning. It is also mandated that primary focus be placed upon meeting housing needs for local residents and workers as dictated by supply and demand or the lack thereof. In addition, that residents who directly benefit, shall pay rent and costs upon moving in as stated herein. Appropriate county, local and state bodies shall not only get full revenue return on initial investment, or as close as possible, but may also receive rents and costs until such time when private or public investors purchase such project properties and receive the same, even as counties or localities receive associated property tax revenues.
2. Rezoning shall be focused on higher density rental units to be placed in existing apartment complexes, other appropriate areas as well a industrial areas; all areas must have accessible traffic control and flow, sufficient expandable utilities, and construction for modular placement space. Such areas shall be developed as quickly as possible or shall take no longer than 90 days.
3. These finished units may rented to employees or as part of their salary. Depending upon supply, finished units may also be rented to non-employees as well. Whether developed in apartment, hotel/motel or industrial complex areas, all such projects shall be subject to local government control and/or subject to state authority for the sole purpose of meeting demand with supply as stated within this Initiative.
4. Being gainfully employed, or with some other legal income, is sufficient to qualify for rental units and as additionally stated herein is a must. Either by Fare Pay or qualifying income, such persons must be allowed rental housing in accordance with promoted supply and demand or some other type of availability outside of mass modular unit production.
5. In tandem with proper local and state authorities, local Commissions may address related issues and, if necessary, issue legislative demands to resolve any issue not covered herein. Legislative demands must be resolved within 30 to 60 days of issuance at the state level and 30 days at the local level.
Sub Section C2
Penalties for fraud shall follow these additional laws mandated by this Initiative, as well as any current or related laws. Additional Initiative laws are as follows:
1. Any grantee to a Fare Housing mortgage who commits intentional fraud by falsifying information to qualify, whether personally admitted, or as proved in a small claims court; and, as a first resort to resolve the issue, a grantor shall at their discretion impose a fine of no more that 5% of mortgage added to the principle, or cancel the Fare Housing mortgage itself; and if necessary, begin eviction as stated within the Initiative. Grantee shall have right of appeal also through small claims court, or personally appeal to grantor through explanation of circumstances which led to such an action in which the grantor can pardon the grantee at the grantor’s discretion.
2. This Initiative in no way negates or overrules fraud as stated in the California Cannon of Law, or to pursue civil and criminal remedies through higher courts.
3. The meaning here of “first resort” simply indicates a first level action and does not eliminate class action, individual civil action or legal remedies against or between involved parties.
Provision D: Local Commissions.
Sub Section D I
Commissions are major pillars within each of one of the Fare Powers Initiatives to serve the People of California. In its way, Fare Housing is no different. Without this type of Commission, Fare Housing cannot be fully served to its intended purpose of service for the People of The Golden State. Here is how it will be successfully accomplished:
1. Commission meetings shall be open to the local public within that commission’s jurisdiction to provide a forum for public concerns or grievance. A letter to be read or in person speaker card, allowed 5 minutes each, must be given to the body elected Chair. Venues for commission meetings shall be provided through voluntarily donated, available public indoor spaces with capacity large enough to seat commission members and to allow observers and speakers as needed. Said meetings shall be held after business hours with a length of time brought up by the chair and voted on by voice. After serving one month, a meeting chair shall serve at the pleasure of the commission body and determined at that time by anonymous paper slip vote after discussion of reasons why for replacement. If not, chair will continue to serve on a month by month basis.
2. Robert’s Rules of Order shall be used by all commissions across California; the chair shall remind members of said rules before any business is brought by commission members to be discussed for no more 20 minutes as ruled by the chair. Questions may be asked by/of the Chair, who shall decide after no more that several questions to call for a vote. If determined by a majority of members after a vote, indicated action maybe taken in agreement/disagreement with the Chair.
3. All issues in the context of this Initiative, must be confined to housing concerns or issues. Commissions shall meet no more than once per week and may have an issue question put on the calendar for future consideration. A commission quorum shall be three quarters of 36 and may meet and vote. A selection of new member(s) shall be done if a vacancy occurs. And, new commission members shall be selected after one year if sufficient numbers of volunteers permit; if not, then serving members may be asked to volunteer for another year.
4. Security shall be provided by at least 2 local law enforcement officers–on duty or volunteered. Any member or attendee of a given commission shall conduct themselves in a civil and decent manner that is not disruptive or intrusive; depending on the circumstance, they shall be warned by the Chair, calmed by Security and fellow members, and may be asked to leave, or if necessary, be subject to arrest for disturbing the peace.
5. As in the other two Fare Powers Initiatives, the only legislative authority shall be Legislative Demand–Legislative Demands here are defined as: a Commission designed and voted, clearly stated summary legislatively acted upon amendment to a law–and a given commission shall be able to make said Legislative Demand at the local level and be answered by the local legislative body within 30 calendar days via a floor voice vote; at the state level, it shall only require a simple majority of one commission, among all of the Commissions within California, to compel the state Legislature to answer that demand within 30 to 60 calendar days via a floor voice vote. If governing bodies fail to act within the allotted time frame, and there is no provable reason for failure to act, then a given commission may seek legal assistance for adjudication; the governing body named as defendant shall be responsible for the plaintiff commission’s legal fees; not only initially, but through all levels of appeal until final judgment is reached.
6. For every given area of no more than 10,00 residents there shall be one local Fare Housing Commission, aka, Fare Powers Reform Commissions; for larger areas, there shall be a single commission for every 10,000 residents, for example: in a concentrated, high density population of 1,000,000, there would be 100 commissions. A single commission shall be comprised of no more than 36 members. Thirty four of that membership shall be selected by random drawing from a pool of volunteers who submitted their information as registered voters who speak and understand English–an unbiased method either computerized, digital or by hand shall be designed and implemented by a local city or county clerks office within 30 days after passage of this Initiative. The local government shall appoint the two commission members from planning, pubic works and city attorney’s office, or if their inhouse pool is not large enough, others may be appointed either inside or outside of local administrations. They too will have a commission vote.
7. Issues of consideration shall be structured following these guidelines of discussion, then voting within a commission meeting: Said commissions shall vote anonymously by a blank voting slip, counted by a randomly selected commission member and recounted again by another to verify and yet again if any member questions a count. Simple majority shall rule. All Commissions shall have the right to not only communicate state wide, but shall also have the right to form alliances and coalitions of legislative demands and other unifying information with other commissions to further reinforce this Initiative.
8. Commissions shall have authority through Legislative Demand to enforce the fraud provisions, or variation thereof, within this Initiative–also as in any of the Fare Powers Initiatives–to address issues brought to their attention by public speakers at their meeting(s).
Provision E: Expansion of rental units, also manufactured modular units.
Sub Section E I
1. Manufactured or on site assembled modular units will be placed in industrial areas or existing apartment, hotel or motel complexes with expandable or in-place room for infrastructure and utilities. To paraphrase, sufficient space for living space shelter and parking.
2. Local authority shall determine, with public comment at planning commission and governing council, then resolution voting for the existing or modified structure density considerations as stated shall also be observed. Governing council shall then vote on whether to proceed with project(s). Local governing bodies shall negotiate cost effectiveness on their own, or, accept best price from independent builders, contractors and developers. Local commissions shall also have power to defend or promote the socio/economic civil rights of The People as declared within this Initiative through legislative demands and/or legal actions protecting safe and sanitary housing.
3. After local authority action of adjusted or redesigned zoning, and strongly aligned with local demand, increase of local supply through construction and/or prefab placement shall proceed without undue delay: 30 to 60 days depending upon available material supply and physical conditions, but no more than 90 days delay shall be allowed. Local commissions shall ally and reinforce such actions and promote them to completion and consummation of the tenets of this Initiative.
Provision F: Home sale, eviction or foreclosure and rental eviction
Sub Section F I
1. After a mortgage is in place, the grantee may sell the property at their discretion. Said sale is subject to these terms: After close, the grantee may sell at any time. Any amount above grantor’s payoff is grantee/seller’s profit or buyer’s debt if agreed. Byer or seller has 3 days to back out. Escrow is 30 days. Seller vacates within 2 weeks after close. All other matters outside of Fare Housing is handled by seller or buyer.
2. Eviction of grantee(s) by a grantor shall be subject only to conditions stated within this Initiative for Fare Housing mortgages only and shall not apply to any other agreements or other mortgage types. Such outside issues shall be handled via a court of law, or be subject to current law.
3. Fare Housing foreclosure shall obviously take place before eviction, and is at the grantor’s discretion no sooner than 2 fully missed payments of either a payment arrangement or full payment agreed upon by both parties in the terms of a Fare Housing Mortgage contract.
4. In regard to this Fare Housing Initiative, any eviction, foreclosure and/or any payment arrangement or lack thereof shall only apply to Fare Housing style mortgages. Outside of this Initiative, other mortgage types shall be subject to in place laws.
5. Grantee will be libel for charges added to mortgage for home improvements or other additions and will be subject to garnishment for those amounts alone until they are paid in full or at the grantor’s discretion to forgive or write off such debt.
6. Foreclose shall not take place if arrangements are made as in “circumstantial factors” above.
7. If not, then foreclosure shall proceed to eviction in this time frame: It is incumbent upon the grantee to contact grantor after one payment is missed to begin arrangements for resolution. Grantee shall lose this protection if said action is not taken by grantee.
8. Grantee shall lose power to negotiate except at grantor’s discretion after a 3rd payment is missed and must follow eviction rules as stated within this initiative.
9. While a Fare Housing mortgaged home is vacant for any reason, unauthorized persons, aka “squatters”, must vacate the home and take none of its property as ordered by a duly swore law enforcement officer(s) immediately. Law enforcement shall have the discretion to immediately arrest or order immediate exit from the property in question. Even though a variation of fraud and if arrested, the minimum charge shall be trespassing and any other charges which are in force outside of this Fare Housing Initiative.
Please note: The following applies only to rental units which come into place as a result of this Initiative and are financed through the terms of this Initiative. Rental agreements made prior to enactment shall remain in force, and will be subject to existing rental laws. Unless refinanced through the terms of this Initiative, previous rental law terms shall apply unless changed through the legislative means laid out in this Initiative or some future changes brought into law.
10. A renter may self evict without additional penalty if rent cannot be made provided the landlord is notified on for before the due date. The renter shall have that following month to vacate. They shall forfeit any deposit made unless otherwise agreed between the parties. If last months rent is paid, then they shall receive their deposit. Renter is libel for damage to their unit if caused by them and be paid out of pocket or by renter’s insurance. If damages are not paid, then a given landlord may seek a garnishment order from a small claims court which shall be mandatory unless overturned by a higher court.
11. A renter shall be immediately evicted if two months consecutive rent is not paid. They shall be libel for that unpaid rent as a penalty through garnishment of either Fare Pay wages or from a private employer also a ordered by a small claims court’s mandatory order, again unless overturned by a higher court.
12. In the event of hardship, a landlord may reduce rental amounts for a definite period of time to be repaid in installments after a certain date or be forgiven, but it shall be at the landlord’s discretion. Any of these rental payment case examples will probably not be a major concern because of the Fare Pay Initiative.
Closing Comment
The direct language used here is to summarize the Primary intent and power of this Fare Housing Initiative–more important, make it into the Force of Law within The Golden State. It will support the legitimate rights of self-interest for The People who pay their way, and is the major pillar within the Fare Powers Reform for base line Economic Freedom–without which, this major right, aka, the enforcement of Protecting and Serving all people within California will not be met! All Fare Powers Initiatives will meet and resolve any related concerns, stated or unstated here, and of course, through additional follow up actions by appropriate Commissions, local and state authorities. The Electoral Conscience shall be the final arbiter!