By Vanguard Staff
SACRAMENTO, CA — A coalition of renters, housing developers, and advocacy groups joined State Senator Dave Cortese (D-Silicon Valley) on Tuesday in support of Senate Bill 750, legislation that would restructure how California finances multifamily housing in an effort to rapidly expand supply and lower rental costs.
SB 750, known as the California Finance and Credit Act, is part of a two-bill package that also includes a proposed 2026 constitutional amendment. If approved by voters, the amendment would allow California to apply its “full faith and credit” to loans and municipal bonds used to build multifamily housing, a move proponents say could dramatically accelerate housing development across the state.
“The public has made it clear they want bold action to resolve the state’s housing and homeless crisis,” said Cortese during a Zoom press conference. “The cities cannot solve this crisis alone. So we are going to the voters asking them to change the constitution to empower the state to use its good credit to help solve this problem for the first time in the state’s history.”
Supporters argue that the bill would unlock hundreds of thousands of shovel-ready homes currently stalled due to financing barriers, especially in an era of high interest rates and limited investor participation. By allowing the state to guarantee financing, the bill is designed to reduce risk, lower capital costs, and attract private investment.
Corey Hébert, a senior associate at ETHOS Real Estate, a private affordable housing developer, said the bill would help move projects that often languish for years waiting on layered, complex funding.
“As a mission-driven affordable housing developer, ETHOS has seen firsthand the challenges of financing new construction—especially Low Income Housing Tax Credits (LIHTC) deals, which often need five or more funding sources and can take up to a decade to complete,” said Hébert. “The California Housing Finance and Credit Act would lower capital costs, reduce financing layers, and de-risk larger projects—unlocking both public and private investment for affordable housing.”
Daniel Heimpel, managing director of Good River Partners and lead sponsor of SB 750, emphasized the bill’s potential to draw significant private financing without direct costs to the state’s General Fund.
“At no cost to the state, the California Housing and Credit Act promises to draw billions in private investment in producing the housing California needs,” said Heimpel. “By insuring loans and municipal bonds with the full faith and credit of the fourth largest economy in the world, we can unstick shovel-ready projects, ramp up multifamily construction and drive down rental costs for Californians.”
Advocates also highlighted the bill’s potential impact on renters struggling to find housing in an increasingly expensive and competitive market. Eve Mendez, a single mother attending college, spoke about her personal experience submitting over 500 rental applications—many rejected because she used a housing voucher.
“We need more housing, more options, and fewer barriers,” said Mendez. “A housing voucher is useless if no one will accept it. I submitted over 500 applications, spending money I didn’t have, before a landlord finally said, ‘I’m going to take a chance on you.’”
Ali Sapirman, advocacy and policy manager for the Housing Action Coalition, said that while the state has made significant progress in planning affordable housing, financing remains the major roadblock.
“It’s clear we are in a housing crisis. We have made great strides in planning for new housing. That work has resulted in more than half a million affordable homes being planned and permitted. They should be ready to go — but, in reality, they’re stuck because they are lacking the financing needed to move forward,” said Sapirman. “SB 750 would let the state use its own credit to guarantee financing for multifamily housing. This means builders can access better loan terms, move projects forward faster—and do it without costing taxpayers a cent from the General Fund.”
Nolan Gray, senior legislative and research director for California YIMBY, echoed that sentiment, emphasizing how SB 750 would ease a major structural barrier in the housing market.
“There are many causes of the high cost of housing, but one of the most difficult to solve is on the financial side,” said Gray. “SB 750 is an important effort to reduce the financial risk that builders face by using the state’s ability to temporarily insure their loans, and thereby lower costs. We applaud Senator Cortese’s efforts to make California more affordable for everyone.”
SB 750 is currently under consideration in the Senate Appropriations Committee. If passed, the companion constitutional amendment would appear before California voters on the 2026 ballot.
Categories:
Breaking News Housing State of California
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Affordable Housing Ali Sapirman California YIMBY Corey Hébert Daniel Heimpel Eve Mendez Housing Action Coalition Housing Crisis Nolan Gray State Senator Dave Cortese Vanguard Staff