Bold Action Is Needed to Increase the State’s Housing Supply Faster And That Means Getting Private Investors Off the Sidelines

SACRAMENTO – Renters, developers and housing advocates joined State Senator Dave Cortese (D-Silicon Valley) during a zoom news conference today to voice their support for his bill that would change the structure of housing finance in California by using public credit to increase the state’s housing supply faster and decrease the high cost of rentals.  

Senate Bill 750 (The California Finance and Credit Act) is part of a two-bill package that includes a 2026 constitutional amendment, which will apply the “full faith and credit of the State of California” to loans and municipal bonds for multifamily housing construction. SB 750 is now in the Senate Appropriations Committee.

Under the proposed bill, California for the first time could draw in credit strapped investors to potentially unlock hundreds of thousands of shovel-ready homes now stuck in limbo by using the full faith and credit of the state to back the financing for the housing projects.

“The public has made it clear they want bold action to resolve the state’s housing and homeless crisis. The cities cannot solve this crisis alone. So we are going to the voters asking them to change the constitution to empower the state to use its good credit to help solve this problem for the first time in the state’s history,” said Senator Dave Cortese.

At the news conference, Corey Hébert, senior associate at ETHOS Real Estate, a private affordable housing developer, said this bill will get private investors off the sidelines to help increase the housing supply.   

“As a mission-driven affordable housing developer, ETHOS has seen firsthand the challenges of financing new construction—especially Low Income Housing Tax Credits (LIHTC) deals, which often need five or more funding sources and can take up to a decade to complete. In contrast, Ethos preserved over 1,700 at-risk units last year using private capital and agency debt. The California Housing Finance and Credit Act would lower capital costs, reduce financing layers, and de-risk larger projects—unlocking both public and private investment for affordable housing,” said Corey Hébert, senior associate at Ethos Real Estate.

Daniel Heimpel, the managing director of Good Rivers Partners, a firm working to privately finance housing for foster youth and lead sponsor of SB 750, told news conference participants the financing structure will decrease the high rental costs now plaguing California.   

 “At no cost to the state, The California Housing and Credit Act promises to draw billions in private investment in producing the housing California needs," said Daniel Heimpel, managing director of Good River Partners. "By insuring loans and municipal bonds with the full faith and credit of the fourth largest economy in the world, we can unstick shovel ready projects, ramp up multifamily construction and drive down rental costs for Californians." 

Eve Mendez, a single mother going to college who has struggled to find affordable housing said SB 750 will offer more affordable housing options for renters.

"We need more housing, more options, and fewer barriers. A housing voucher is useless if no one will accept it. I submitted over 500 applications, spending money I didn’t have, before a landlord finally said, ‘I’m going to take a chance on you,’” said Even Mendez.

At the news conference, Ali Sapirman, advocacy and policy manager for the Housing Action Coalition said bold solutions are needed.

"It’s clear we are in a housing crisis. We have made great strides in planning for new housing. That work has resulted in more than half a million affordable homes being planned and permitted. They should be ready to go — but, in reality, they’re stuck because they are lacking the financing needed to move forward. We need bold effective solutions to bring homes online, that's why I am in support of SB 750. SB 750 would let the state use its own credit to guarantee financing for multifamily housing. This means builders can access better loan terms, move projects forward faster - and do it without costing taxpayers a cent from the General Fund. We urge the Legislature to pass SB 750 and help make California a place where everyone has a home," said Ali Sapirman, policy manager for the Housing Action Coalition.

Nolan Gray, Senior Legislative & Research Director for California YIMBY, said SB 750 will lower the financial risk for builders.   

"There are many causes of the high cost of housing, but one of the most difficult to solve is on the financial side," said Nolan Gray, Senior Legislative & Research Director for California YIMBY. "SB 750 is an important effort to reduce the financial risk that builders face by using the state's ability to temporarily insure their loans, and thereby lower costs. We applaud Senator Cortese's efforts to make California more affordable for everyone."

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