Establishes a program to provide state-backed credit backstops for multifamily housing projects in California.

The bill establishes the Multifamily Backstop Financing Program to support multifamily housing projects in California. It aims to stabilize and scale the offsite construction industry by providing state-backed credit backstops. These backstops enable surety companies to issue payment and performance bonds to offsite housing factories, reducing the risk of factory failure and supporting the housing shortage. The program covers 90 percent of the bond value and is intended to address tail risk, ensuring that factories can secure necessary bonds and projects can proceed.

Establishes a program to provide state-backed credit backstops for multifamily housing projects in California.

The bill establishes the Multifamily Backstop Financing Program to support multifamily housing projects in California. It aims to stabilize and scale the offsite construction industry by providing state-backed credit backstops. These backstops enable surety companies to issue payment and performance bonds to offsite housing factories, reducing the risk of factory failure and supporting the housing shortage. The program covers 90 percent of the bond value and is intended to address tail risk, ensuring that factories can secure necessary bonds and projects can proceed.