Plain English Breakdown
The official text contains conflicting references between 'agency' and 'bank', but context indicates the bill authorizes the California Infrastructure and Economic Development Bank to act.
State Backstop Financing for Offsite Housing Factories
This law creates a program that uses state funds to guarantee loans, helping surety companies provide construction bonds to factories that build apartment buildings off-site.
What This Bill Does
- Creates the Multifamily Backstop Financing Program if the Legislature approves funding.
- Allows the California Infrastructure and Economic Development Bank to offer credit backstops to surety companies.
- Enables these companies to issue payment and performance bonds for qualified offsite housing factories.
- Requires the bank to write rules needed to run this new program.
Who It Names or Affects
- The California Infrastructure and Economic Development Bank
- Surety companies and insurers that issue construction bonds
- Qualified offsite housing factories in the state
Terms To Know
- Credit backstop
- A guarantee from the government to pay if a borrower cannot, which encourages lenders or insurers to take risks.
- Surety company
- An insurance firm that guarantees a contractor will finish a project and pay for materials and labor.
- Offsite housing factory
- A facility where parts of apartment buildings are built in sections before being assembled at the final location.
Limits and Unknowns
- The program only starts if the Legislature sets aside money for it.
- Specific rules about how to pick which factories get help will be written later by the bank.
- Details on prioritizing applications are not included in this bill but may come in future laws.