Governor Newsom Signs SB 750 to Tackle the Financing Crisis Which Has Stalled the Production of Affordable Housing

SACRAMENTO, CA — California State Senator Dave Cortese has announced that Governor Newsom signed his Senate Bill 750 into law. Otherwise referred to as the California Housing Finance and Credit Act (CAHFCA), SB 750 advances a critical study of whether state credit enhancements can make financing more accessible for the production of affordable housing across the state.  

SB 750 takes a critical look at one of the biggest barriers to building affordable housing in California: access to affordable financing. The legislation directs the California Housing Finance Agency (CalHFA) to study how state credit enhancements could help attract private capital and reduce financing costs for affordable housing production. The State of California currently has an AA credit rating, but it has not been utilized to guarantee low-income housing loans. 

“California cannot build the housing we need if developers cannot secure financing to break ground,” said Senator Cortese. “SB 750 takes a hard look at whether state credit enhancements can help unlock capital, lower financing costs, and get more affordable housing projects moving. We have to be willing to explore every tool available to turn housing that exists on paper into real homes and get working families into the affordable housing they deserve.”

High interest rates, tighter lending conditions, and rising development costs have made it increasingly difficult for affordable housing projects to secure financing. As a result, projects that have already gone through years of planning and approvals can remain stalled, leaving nearly 600,000 low-income and moderate-income homes halted due to the lack of affordable financing. Guarantees of construction loans through state credit tools can move these projects forward. 

SB 750 requires CalHFA to assess potential credit enhancement strategies, including the costs, risks, and benefits of establishing financial tools to be used to enable the program. The assessment will help determine whether such a structure could improve access to private financing and reduce borrowing costs for affordable housing projects.

Senator Dave Cortese represents Senate District 15, which encompasses San José and much of Santa Clara County in the heart of Silicon Valley. Visit Senator Cortese’s website at https://sd15.senate.ca.gov. View all Press Releases at https://sd15.senate.ca.gov/news/press-releases. 

Select the Google Translation Feature on the website for translations in Spanish, Vietnamese, and 12 other languages. Seleccione la función de traducción de Google en el sitio web para obtener traducciones al español, vietnamita y otros 12 idiomas. Hãy chọn tính năng Dịch của Google trên trang web để dịch sang tiếng Tây Ban Nha, tiếng Việt và 12 ngôn ngữ khác.

Contact:

Mario B. Lopez | Communications Director

Office of Senator Dave Cortese | District 15

Phone: 408-545-8205 | Email: mario.lopez@sen.ca.gov 

For Scheduling Interviews

Natasha Waxman, Executive Assistant 

Office of Senator Dave Cortese | District 15

Email: natasha.waxman@sen.ca.gov

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