Bill > SB750

This bill establishes the California Housing Finance and Credit Act (CAHFCA), a credit enhancement program designed to stimulate affordable housing construction by providing insurance and financial support for housing development loans. The program will be administered by the California Housing Finance Agency and will become operational on January 1, 2027, contingent on voter approval of a related constitutional amendment. The bill addresses California's significant affordable housing shortage, noting that only 20% of very low-income housing units and 30% of low-income housing units required were permitted in the fifth housing element cycle. The program will create a California Housing Finance and Credit Fund in the State Treasury, which will be continuously appropriated to provide credit enhancements for construction and permanent loans for affordable housing developments. The agency can insure loans, offer credit enhancements, and charge premiums up to 2% to help manage financial risks. The bill requires annual reporting by the agency and biannual effectiveness reports by the Legislative Analyst's Office. The program is modeled in part after the New York City Residential Mortgage Insurance Corporation, which has had minimal insurance claims over its 49-year history. Key provisions include establishing minimum qualifications for housing developments, setting loan insurance requirements, and creating processes for managing loan defaults, with the ultimate goal of increasing affordable housing production across California.

Budget and Finance, Housing and Urban Affairs, Justice

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