Bill > SB750

This bill establishes the California Housing Finance and Credit Act (CAHFCA), a program designed to address California's affordable housing crisis by creating a credit enhancement mechanism for multifamily housing construction and permanent loans. The bill highlights California's significant shortfall in housing unit production, noting that only 20% of very low-income housing units and 30% of low-income housing units were permitted in the fifth housing element cycle. The program will be administered by the California Housing Finance Agency and will provide credit enhancements to stimulate private capital investment in affordable housing development, without direct cost to the state. Key provisions include establishing a California Housing Finance and Credit Fund, creating a premium charge for loan insurance (not exceeding 2%), requiring annual reporting on program effectiveness, and allowing the agency to insure and offer credit enhancements for construction and permanent loans. The bill requires the Governor to set an annual limit on loan insurance authorization and includes safeguards to prevent excessive financial risk. Notably, the program will only become operative on January 1, 2027, contingent upon voter approval of a related Senate Constitutional Amendment. The legislation aims to liberally interpret and implement its provisions to increase affordable housing production across different income levels in California.

Budget and Finance, Housing and Urban Affairs, Justice

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB750