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AB-2166 • 2026

Multifamily housing development: offsite housing factories: backstop financing.

Multifamily housing development: offsite housing factories: backstop financing.

Budget Housing
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Carrillo
Last action
2026-04-23
Official status
From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 11. Noes 0.) (April 22).
Effective date
Not listed

Plain English Breakdown

The official source does not provide details about the prioritization criteria, leaving this aspect uncertain.

Multifamily Housing Development: Offsite Housing Factories Financing

The bill establishes a program that provides state-backed financial support for surety companies issuing bonds for multifamily housing projects using offsite housing factories, contingent on legislative funding.

What This Bill Does

  • Establishes the Multifamily Backstop Financing Program upon appropriation by the Legislature.
  • Authorizes the California Housing Finance Agency to provide credit backstops to surety companies and insurers issuing construction bonds for qualified offsite housing factories.
  • Requires the agency to adopt rules and regulations necessary to implement the program.

Who It Names or Affects

  • Multifamily housing developers using offsite housing factories.
  • Surety companies and insurers providing construction bonds.
  • The California Housing Finance Agency.

Terms To Know

Backstop Financing
Financial support provided to ensure that surety companies can issue payment and performance bonds for construction projects.
Surety Companies
Companies that provide financial guarantees, such as payment and performance bonds, for construction projects.

Limits and Unknowns

  • The program will only start if the Legislature provides funding.
  • It is unclear how many multifamily housing developers will benefit from this program.
  • Specific criteria for prioritizing applications are not detailed in the bill.

Bill History

  1. 2026-04-23 California Legislative Information

    From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 11. Noes 0.) (April 22).

  2. 2026-03-23 California Legislative Information

    Re-referred to Com. on H. & C.D.

  3. 2026-03-19 California Legislative Information

    From committee chair, with author's amendments: Amend, and re-refer to Com. on H. & C.D. Read second time and amended.

  4. 2026-03-19 California Legislative Information

    Referred to Com. on H. & C.D.

  5. 2026-02-19 California Legislative Information

    From printer. May be heard in committee March 21.

  6. 2026-02-18 California Legislative Information

    Read first time. To print.

Official Summary Text

AB 2166, as amended, Carrillo.
Department of Housing and Community Development.
Multifamily housing development: offsite housing factories: backstop financing.
Existing law establishes the California Housing Finance Agency (agency) and authorizes the agency to, among other things, make loans to finance affordable housing, including residential structures, housing developments, multifamily rental housing, special needs housing, and other forms of housing, as specified.
This bill would establish, upon appropriation by the Legislature, the Multifamily Backstop Financing Program (program), for purposes of supporting multifamily projects through the provision of state-backed credit backstops that would enable surety companies to issue payment and performance bonds to qualified offsite housing factories in the state.
The bill would authorize the agency to provide credit backstops to surety companies and surety insurers that issue construction bonds according to specified parameters. The bill would require the agency to adopt rules and regulations necessary to implement the program. The bill would state that it is the Legislature’s intent to include provisions relating to the prioritization and review of applications received pursuant to this chapter.
Existing law provides that the Department of Housing and Community Development is administered by an executive officer, known as the Director of Housing and Community Development. Under existing law, the director is appointed by the Governor, subject to confirmation by the Senate, and holds office at the pleasure of the Governor.
This bill would make a nonsubstantive change to these provisions.

Current Bill Text

Read the full stored bill text 
Download Bill PDF