Senator Cortese presents SB 750 to enhance California housing financing

The California Assembly Housing and Community Development Committee convened on July 2, 2025, to discuss Senate Bill 750, which aims to establish a credit enhancement program to stimulate housing production across the state. This initiative emerges amid a pressing housing crisis, highlighted by the alarming statistic that San Jose reported zero multi-family housing starts last year, despite approving all applications. The bill seeks to address financial barriers that hinder private investment in housing development.

Senator Cortese, the bill's sponsor, emphasized that the genesis of SB 750 stemmed from discussions at the Bay Area Caucus, where members recognized the need to unlock private investment through credit enhancements. The proposed program would function similarly to successful federal initiatives, such as those by the Federal Housing Administration, which have historically utilized credit enhancements to support housing projects. By guaranteeing loans and wrapping bonds, the program aims to make housing a more attractive investment for private financiers, potentially lowering interest rates and increasing the availability of affordable housing.

Supporters of the bill, including representatives from Good River Partners and the California Housing Partnership, underscored the importance of loan guarantees in facilitating housing development, particularly for vulnerable populations like former foster youth. They argued that reducing the financial burden on developers would enable more projects to move forward, ultimately increasing the number of affordable housing units available.

The committee also discussed the necessity of a companion Senate constitutional amendment, which would allow the use of California's credit for housing projects. This amendment is crucial, as the state constitution currently restricts credit enhancements for housing, a limitation not faced by federal programs.

In conclusion, the committee's discussions highlighted the urgent need for innovative financial solutions to California's housing crisis. As the bill progresses, stakeholders are optimistic that SB 750 could pave the way for increased private investment in housing, ultimately benefiting communities across the state. The committee's commitment to refining the bill and addressing regulatory concerns suggests a collaborative approach moving forward, with the potential for significant impacts on California's housing landscape.