(

a) The Homeownership Assistance Fund is hereby created in the State Treasury and, notwithstanding

Section of the Government Code, is continually appropriated to the department for purposes of this chapter, including

Section 50775.5, and for the purposes of

Section 50745.1. Any moneys received by the department pursuant to this

chapter shall be deposited in such fund. All interest or other increment resulting from investment or deposit of moneys in the fund shall be deposited in the fund, notwithstanding

Section 16305.7 of the Government Code. Moneys in the fund shall not be subject to transfer to any other fund pursuant to any provisions of

Part 2 (commencing with

Section 16300) of Division of Title of the Government Code, excepting the Surplus Money Investment Fund. (

b) Not less than percent of the moneys in the fund shall be used to assist lower income households. Not less than percent of the units assisted shall be in rural areas. (

c) Funds available for the purpose of this

chapter shall be allocated by the department throughout the state in accordance with identified housing needs. (d)

(1) Notwithstanding any other provision of law, commencing on July 1, 1992, the department shall not be required to make loans pursuant to this chapter.

(2) The department may retain within the fund moneys necessary for administration and monitoring of loans made prior to July 1, 1992, to make loans pursuant to loan commitments made prior to July 1, 1992. The department may also retain reserves for curing or averting a default that would jeopardize any security interest of the department.

(3) Notwithstanding any other provision of law, on or after July 1, 1996, the unencumbered fund balance and reserves shall be transferred to the Housing Rehabilitation Loan Fund. Subsequent income and resources shall be deposited to the Housing Rehabilitation Loan Fund.