California Housing Finance Agency

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California Housing Finance Agency (CalHFA)
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CalHFA Logo
Agency overview
Formed 1975
Headquarters 1415 L Street, Suite 500, Sacramento, California 95814
Employees 337.8 (budgeted 2010-11)
Annual budget $52.246 million (2010-11)
Agency executives Steven Spears, Executive Director
Margaret Alvarez, Director of Asset Management
Bruce D. Gilbertson, Director of Financing
Thomas C. Hughes, General Counsel
Parent agency California Business, Consumer Services and Housing Agency

The California Housing Finance Agency (CalHFA), established in 1975, is a California state agency within the California Business, Consumer Services and Housing Agency that makes low-rate loans through the sale of taxable and tax exempt bonds.[1][2]


CalHFA was created by the Zenovich–Moscone–Chacon Housing and Home Finance Act of 1975, which also permanently established and reorganized the California Department of Housing and Community Development.[3]

Known until 2002 as CHFA (commonly pronounced "cha-fuh"), CalHFA was rebranded "to keep pace with our expanding audience and the growing needs of the affordable housing marketplace" and "to elevate CalHFA’s profile on all key fronts."[4][5]

Historically, CalHFA has provided housing assistance in three areas: below-market interest rate mortgages and downpayment assistance for first-time homebuyers, most of whom were low- and moderate income families and ethnic minorities not well-served by market rate products, insurance for single-family home purchase mortgages, and loans for the development of multifamily rental housing. These financial products were funded through sale of revenue bonds secured by the mortgage products and the underlying property. The operating costs of the agency are paid by origination and service fees, and the difference between the interest paid on outstanding debt and the interest charged on the loans made. Beginning in 2002, passage of Proposition 46 (2002) provided funding for additional activities through sale of general obligation bonds.[6] This source of funding was extended by passage of Proposition 1C (2006).[7][8]

Effects of Financial crisis of 2007–2010[edit]


As of September 2010, CalHFA offered two first mortgage loans for first-time homebuyers. The Cal30 loan is insured conventionally, while the FHA loan is insured by the Federal Housing Authority. CalHFA also offers down payment assistance loans, the most notable being the California Homebuyer's Downpayment Assistance Program, which contributes up to 3% home's value for closing costs or down payment assistance.

See also[edit]


  1. ^ "About Us". California Housing Finance Agency. Retrieved 17 January 2009. 
  2. ^ Deloitte & Touche LLP (October 28, 2009). "California Housing Finance Agency Audited Financial Statements 2008-09". California Housing Finance Agency. p. 3. Retrieved September 26, 2010. 
  3. ^ California Statutes 1975 1st Ex. Sess. (Vol. 2), Ch. 1, pg. 3855
  4. ^ Parker, Theresa; Wallace, Clark (December 20, 2002). "Affordable Housing is Our Business 2001-2002 Annual Report". California Housing Finance Agency. p. 2. Retrieved September 26, 2010. 
  5. ^ "CHFA gets new look", Real Estate Bulletin (California Department of Real Estate), Winter 2002: 9, retrieved September 26, 2010 
  6. ^ "California Proposition 46 (2002)". February 10, 2010. Retrieved September 26, 2010. 
  7. ^ "California Proposition 1C (2006)". January 21, 2010. Retrieved September 26, 2010. 
  8. ^ "Housing Propositions". CalHFA. Retrieved September 26, 2010. 

External links[edit]