Senator Cortese’s SB 750 Clears Assembly Appropriations, Bringing Innovative Housing Finance Solution One Step Closer

SACRAMENTO, CA — California State Senator Dave Cortese’s Senate Bill 750, the California Housing Finance and Credit Act (CAHFCA), has cleared the Assembly Appropriations Committee suspense file, advancing a new approach to unlock private capital and move hundreds of thousands of stalled housing units toward construction.

California is facing a severe housing shortage, yet nearly 600,000 low-income and moderate-income homes remain stalled in the construction pipeline awaiting financing. Rising interest rates and limited access to private capital have made it increasingly difficult to move approved projects into construction.

SB 750 would establish a credit enhancement pilot program at the California Housing Finance Agency (CalHFA) and require a comprehensive assessment of how credit enhancements can reduce borrowing costs and unlock additional investment in housing.

“In California, we have approved housing projects that are ready to go, but they are sitting on the sidelines because the financing simply is not there,” said Senator Dave Cortese (D-San Jose). “We cannot permit our way out of a financing crisis. SB 750 puts California’s financial strength to work to attract private capital, lower borrowing costs, and get housing projects out of the pipeline and into the ground.”

Credit enhancements are a proven tool used by both the private and public sectors to reduce risk and encourage investment in projects that provide a public benefit. SB 750 would build on California’s history of using state-backed credit mechanisms while creating a fiscally responsible pathway to unlock favorable financing for housing development.

“California has the projects. We have the workers. We have an overwhelming need for housing,” Cortese added. “What we need is the financing to bring those pieces together. SB 750 is about unlocking that capital and finally moving approved housing from paper to production.”

The Assembly Appropriations Committee’s action moves SB 750 to the Assembly Floor for consideration.

Senator Dave Cortese represents Senate District 15, which encompasses San Jose and much of Santa Clara County in the heart of Silicon Valley. Visit Senator Cortese’s website: https://sd15.senate.ca.gov

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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