SACRAMENTO, CA – In a move to address California’s housing crisis, State Senator Dave Cortese has introduced SB 750, a proposal to unlock affordable housing development by leveraging the state’s credit—not its budget.
SB 750, also known as the California Housing Finance & Credit Act, would establish the California Residential Mortgage Insurance Act (Cal REMIA)—a state-backed credit enhancement program administered by the California Housing Finance Agency (CalHFA). The program would insure construction and permanent loans for multifamily housing developments, allowing private capital to flow more easily into housing projects currently stalled by high interest rates and complex financing structures.
“This is a first-of-its-kind housing finance solution that could fast-track the construction of thousands of affordable homes across our state without burdening taxpayers,” said Senator Cortese. “Just like we’ve backed public hospitals in the past, this bill uses the state’s credit to get housing projects moving.”
SB 750 comes at a critical time, as California faces a shortfall of over 500,000 affordable homes. Many shovel-ready projects are languishing due to rising financing costs and market instability. The proposed program would offer insurance and credit guarantees to reduce risk for lenders and bond issuers, helping developers secure the financing needed to break ground.
Modeled after similar state-backed loan insurance programs in the health care sector, Cal REMIA would provide insurance for loans used to construct multifamily housing projects—those with five or more residential units. It would also offer credit enhancements for municipal bonds issued to fund these developments.
Unlike traditional housing subsidies, Cal REMIA would operate with no cost to the state’s General Fund. Program administration and insurance would be funded by fees and insurance premiums paid by loan recipients, capped at a maximum of 2%. These funds would be deposited into a newly created California Residential Mortgage Insurance Fund, which would be continuously appropriated to CalHFA.
The program would also include annual reporting requirements and independent financial reviews to ensure transparency and accountability.
SB 750’s implementation is contingent on the passage of a related constitutional amendment during the 2025–26 legislative session, which would authorize the use of state credit for this purpose. If approved by voters, the law would go into effect on January 1, 2027.
In committee hearings, supporters of the bill have pointed to the urgent need for creative financing tools to meet the state’s housing production goals. Recent data show that only 20% of needed very low-income units and 30% of low-income units have been permitted, making financing a key obstacle in California’s affordable housing pipeline.
“This is not just another housing bill—it’s a structural reform to how we finance housing,” Cortese said. “SB 750 could be the key to unlocking hundreds of thousands of homes currently stuck in limbo.”
The bill has begun to attract attention from housing advocates, developers, and financial institutions as a potentially transformative approach to building housing at all income levels—from deeply affordable units to workforce housing.
As California lawmakers prepare for a busy legislative session and ongoing budget negotiations, SB 750 could emerge as a centerpiece in the state’s broader effort to tackle the housing affordability crisis through innovation and fiscal responsibility.
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