Ask the Governor to Sign AB 1423 to Reduce the Cost of Affordable Housing Development 

Play your part in California’s Roadmap Home 2030! Policymakers and housing providers have been looking for ways to reduce the cost of developing affordable homes in order to stretch scarce resources further. One of the few costs the state can affect directly is the cost of borrowing funds from private banks. Sponsored by the California Housing Partnership, AB 1423 (Daly) will significantly lower the cost of developing new affordable homes by allowing the use of lower-cost state funds during the construction period. The Governor must act on this bill by October 10th. You can help reduce the cost of development by sending the attached sample letter to ASAP.

AB 1423 aligns with policy solution E.4 of California’s @RoadmapHome2030.


Currently, the California Department of Housing and Community Development (HCD) only provides funds after construction is complete to pay off construction loans from private banks, which require payment of market-rate interest on a monthly basis. These private loans are much larger than they would otherwise be if HCD funds were made available during the construction period. The additional interest on a large construction loan can add hundreds of thousands of dollars – roughly 5% of the HCD loan amount – to the cost of each affordable rental housing development.  

AB 1423 significantly reduces construction period interest expenses by directing HCD to fund loans during the construction period, in partnership with the private banks who will continue to monitor construction progress and disburse funding.

By reducing these development costs, AB 1423 will stretch precious state resources to create more affordable homes for California’s low-income families without jeopardizing the high quality of their construction. Please help make AB 1423 a reality by requesting the Governor's signature today.
For questions or more information, please contact Director of Advocacy, Mark Stivers, at

Mark Stivers
Director of Legislative and Regulatory Advocacy
About the California Housing Partnership
The California Housing Partnership creates and preserves affordable and sustainable homes for Californians with low incomes by providing expert financial and policy solutions to nonprofit and public partners. Since 1988, the Partnership's on-the-ground technical assistance, applied research, and legislative leadership has leveraged $25 billion in private and public financing to preserve and create more than 75,000 affordable homes. |

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