Existing law establishes the California Housing Finance Agency (agency) and authorizes the agency to, among other things, make loans to finance affordable housing, including residential structures, housing developments, multifamily rental housing, special needs housing, and other forms of housing, as specified.

This bill would establish, upon appropriation by the Legislature, the Multifamily Backstop Financing Program (program), for purposes of supporting multifamily projects through the provision of state-backed credit backstops that would enable surety companies to issue payment and performance bonds to qualified offsite housing factories in the state. The bill would authorize the agency to provide credit backstops to surety companies and surety insurers that issue construction bonds according to specified parameters. The bill would require the agency to adopt rules and regulations necessary to implement the program. The bill would state that it is the Legislature’s intent to include provisions relating to the prioritization and review of applications received pursuant to this chapter.