(a) For purposes of a home financing program authorized by this part, a city or county has the following powers and duties: (1) To acquire, contract, and enter into advance commitments to acquire home mortgages made or owned by lending institutions at the purchase prices and upon the other terms and conditions as shall be determined by the city or county or other person as it may designate as its agent, to make and execute contracts with lending institutions for the origination and servicing of home mortgages, and to pay the reasonable value of services rendered under those contracts. Prior to executing any contract with a lending institution, a city or county shall adopt regulations establishing criteria for qualification of lending institutions eligible to originate and service home mortgages under home financing programs authorized by this part and shall, with respect to each home financing program, permit each qualified lending institution that transacts business in the city or county the opportunity to participate in the program on an equitable basis with other participating lending institutions. Two or more cities in the same county, a county and one or more cities within the county, or two or more adjacent counties and any number of cities within those counties may enter into an agreement to join or cooperate with one another in the exercise jointly, or otherwise, of any or all of their powers for the purpose of financing home mortgages pursuant to this part with respect to property within the boundaries of any one or more of the entities. (2) To make loans to lending institutions under terms and conditions that, in addition to other provisions as determined by the city or county, require the lending institutions to use all of the net proceeds thereof, directly or indirectly, for the making of home mortgages in an aggregate principal amount equal to the amount of the net proceeds. (3) To establish, by rules or regulations, in resolutions relating to any issuance of bonds, or in any documents relating to the issuance, standards and requirements applicable to the purchase of home mortgages or the making of loans to lending institutions as the city or county deems necessary or desirable to effectuate the purposes of this part, which may include without limitation any of the following: (A) The time within which lending institutions are required to make commitments and disbursements for home mortgages. (B) The location and other characteristics of homes to be financed by home mortgages. (C) The terms and conditions of home mortgages to be acquired. (D) The amounts and types of any insurance coverage required on homes, home mortgages, and bonds. (E) The representations and warranties of lending institutions confirming compliance with the standards and requirements. (F) Restrictions as to interest rate and other terms of home mortgages or the return realized therefrom by lending institutions. (G) The type and amount of collateral security to be provided to assure repayment of any loans from the city or county and to assure repayment of bonds. (H) Any other matters related to the purchase of home mortgages or the making of loans to lending institutions as deemed relevant by the city or county. (4) To require from each lending institution from which home mortgages are purchased or to which loans are made the submission of evidence satisfactory to the city or county of the ability and intention of the lending institution to make home mortgages, and the submission, within the time specified by the city or county for making disbursements for home mortgages, of evidence satisfactory to the city or county of the making of home mortgages and of compliance with any standards and requirements established by it. (b) Each city or county that finances housing pursuant to this part shall designate a person or entity to administer the program. (c) Each city or county that finances housing pursuant to this part shall adopt regulations establi
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