CA AB2674

Establishes the California Affordable and Foster Youth Housing Finance Innovation Program to issue credit instruments (loan guarantees, secured loans, and lines of credit) to qualified housing sponsors for construction, acquisition, and renovation of housing projects.

Requires a minimum of 25 percent of dwelling units in qualified projects to be reserved for current or former foster youth (priority given to ages 18-25) and a minimum of 25 percent for low-income households.

Mandates qualified housing sponsors verify tenant eligibility upon agency request and prohibits charging rents exceeding fair market rent established by the U.S. Department of Housing and Urban Development.

Specifies secured loans cannot exceed 20 percent of eligible project costs with interest rates matching U.S. Treasury securities of similar maturity; lines of credit cannot exceed 33 percent of project costs with interest rates matching 30-year Treasury securities.

Requires credit instruments to be funded exclusively from the California Housing Finance Fund (not the General Fund) and mandates the agency submit reports to the Legislature by December 31, 2028, and every three years thereafter on program operations, financial performance, and accomplishments.