Multifamily housing development: offsite housing factories: backstop financing.
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Majority
Fiscal committee
No
Appropriation
No
Current location
Passed
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill creates a state-backed financing program, called the Multifamily Backstop Financing Program, to support the growth of offsite housing factories in California. The program will provide credit backstops to surety companies, allowing them to issue bonds for construction projects undertaken by these factories. This aims to overcome a barrier to the widespread adoption of offsite construction – the reluctance of sureties to provide bonds due to the relative newness of these factories – ultimately helping to reduce housing costs and address California’s housing shortage.
Key provisions
- Establishes the Multifamily Backstop Financing Program.
- Provides credit backstops to surety companies to issue bonds for offsite housing factories.
- Requires the California Housing Finance Agency to administer the program.
- Defines key terms such as ‘Qualified Applicant,’ ‘Qualified Factory,’ and ‘Qualified Multifamily Project.’
- Specifies that credit backstops will cover a percentage of the bond value (at the discretion of the agency) and will not replace standard surety underwriting.
- Includes provisions for prioritizing and reviewing applications for the program.
- Creates definitions for the program and related terms.
- Requires the agency to adopt rules and regulations to implement the program.
Who is affected
- Offsite housing factories
- Surety companies and insurers
- Developers of multifamily housing projects
Bill text
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Sponsors
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5 on record
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