SB 750: California Housing Finance Agency: credit enhancement mechanisms study.

The proposed legislation establishes a credit enhancement program for affordable housing construction loans and permanent loans. The program aims to stimulate the flow of private capital into affordable housing construction and development, thereby meeting the need for new and expanded affordable housing. The program would be administered by the California Housing Finance Agency, which would establish and implement the program, insure and offer credit enhancements, and prepare an annual report. The agency would also establish a premium charge for the insurance of loans under the program, which would be deposited into a dedicated fund. The premium rate would vary, but not exceed 2%. The governor would be required to include a limit on the authorization for the agency to insure housing construction and expansion loans in the budget. The program would not be subject to the state general ob…