Senator Dave Cortese’s Housing Finance Solution Bill Passes the Senate Judiciary Committee And Heads To Senate Appropriations

SACRAMENTO - On a unanimous, bipartisan vote, the state Senate Judiciary Committee  passed Senator Dave Cortese’s  Senate Bill 750 that will structurally reform how California finances housing, potentially unlocking hundreds of thousands of shovel-ready homes now stuck in limbo.

SB 750 now advances to Senate Appropriations having passed both the Senate Housing and Judiciary Committees.

“This bill is a first-of-its kind housing finance solution that could fast track the construction of thousands of affordable homes needed throughout California without burdening taxpayers. With federal cuts to U.S. Department of Housing and Urban Development (HUD) and various housing programs, now more than ever, the state needs to use every tool it has to produce housing,” said Senator Dave Cortese (D-Silicon Valley). 

The bill is called the California Housing Finance & Credit Act. It establishes a state-backed credit enhancement program administered by the California Housing Finance Agency. The goal of the program is to keep housing projects moving forward instead of being bogged down for years with high interest rates.

The program would offer insurance and credit guarantees to reduce the risk for lenders and bond issuers, helping developers get the financing needed to begin construction.

SB 750 would require the California Housing Finance Agency (CalHFA) to administer the California Housing Finance and Credit Act (CAHFCA). This program would use California’s credit to guarantee financing for multifamily housing production.

SB 750 is contingent on a constitutional amendment passing the Legislature and receiving voter approval.

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