California Housing Finance Agency

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California Housing Finance Agency
California Housing Finance Agency logo.png
CalHFA logo
Agency overview
Formed 1975 (1975)
Jurisdiction California
Headquarters 500 Capitol Mall, Suite 1400 Sacramento, California 95814
Agency executives
  • Janet Falk, Chairperson
  • Tia Boatman Patterson, Executive Director
Parent department Department of Housing and Community Development
Key document
  • Zenovich–Moscone–Chacon Housing and Home Finance Act of 1975[1]

The California Housing Finance Agency (CalHFA), established in 1975, is an independent California state agency within the California Department of Housing and Community Development that makes low-rate housing loans through the sale of taxable and tax exempt bonds.[2][3]


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.[1]

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]

In 2014, the CalHFA board voted to expand first mortgage eligibility to non-first-time homebuyers.[citation needed]


The Single Family Division provides low interest rate home financing to low to moderate income homebuyers in California, as well as down payment and closing cost assistance.[9]

The Multifamily Programs division provides permanent financing for the acquisition, rehabilitation, and preservation or new construction of rental housing that includes affordable rents for low and moderate income families and individuals.[10]

The Asset Management Division is responsible for the management of agency-financed multifamily rental developments, where each project is monitored regarding its financial, physical and occupancy compliance with various regulations in California.[11]


The CalPLUS loan programs feature a CalHFA fixed interest rate first mortgage, insured either through FHA or on the conventional market. This loan is fully amortized for a 30-year term and is combined with the CalHFA Zero Interest Program (ZIP) for down payment assistance.

The Cal EEM + Grant combines an FHA Energy Efficient Mortgage with an additional 4% grant to help homebuyers improve their home with energy-efficient upgrades.

The California Homebuyer’s Downpayment Assistance Program (CHDAP) offers a deferred-payment subordinate loan amount of (3%) of the purchase price of appraised value, whichever is less, to be used for down payment and/or closing costs.

The Extra Credit Teacher Home Purchase Program (ECTP) is intended for eligible teachers, administrators, classified employees and staff members working in high priority schools in California. Offers a deferred-payment junior loan of an amount not to exceed the greater of $7,500 or 3% of the sales price or in CalHFA-defined high cost areas an amount not to exceed the greater of $15,000 or 3% of the sales price. Assistance can be used for down payment.

The Mortgage Credit Certificate Tax Credit Program (MCC) is a federal credit which can reduce potential federal income tax liability, creating additional net spendable income which borrowers may use toward their monthly mortgage payment. This MCC Tax Credit program may enable first-time homebuyers to convert a portion of their annual mortgage interest into a direct dollar for dollar tax credit on their U.S. individual income tax returns.


CalHFA is authorized to administer the activities of the California Housing Finance Fund, the California Housing Loan Insurance Fund, and two state general obligation bond funds.[12] CalHFA has $6.8 billion in assets that are mainly loan receivables and investments related to bond proceeds.[13]

CalHFA is a statutorily independent agency and component unit of state government, and is not subject to Budget Act appropriation.[13] Budget information for CalHFA is displayed within that of the Department of Housing and Community Development.[13]

See also[edit]


  1. ^ a b California Statutes 1975 1st Ex. Sess. (Vol. 2), Ch. 1, pg. 3855
  2. ^ "About Us". California Housing Finance Agency. Retrieved 17 January 2009. 
  3. ^ Deloitte & Touche LLP (October 28, 2009). "California Housing Finance Agency Audited Financial Statements 2008-09" (PDF). California Housing Finance Agency. p. 3. Retrieved September 26, 2010. 
  4. ^ Parker, Theresa; Wallace, Clark (December 20, 2002). "Affordable Housing is Our Business 2001-2002 Annual Report" (PDF). California Housing Finance Agency. p. 2. Retrieved September 26, 2010. 
  5. ^ "CHFA gets new look" (PDF), Real Estate Bulletin, California Department of Real Estate, p. 9, Winter 2002, 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. 
  9. ^ "Lenders/Realtors/Nonprofits". California Housing Finance Agency. Retrieved November 28, 2014. 
  10. ^ "Multifamily Programs". California Housing Finance Agency. 
  11. ^ "Asset Management (Property Agent/Owners)". California Housing Finance Agency. 
  12. ^ CliftonLarsonAllen LLP (October 13, 2014). "California Housing Finance Fund: Audited Financial Statements for the Years Ended June 30, 2014 and 2013" (PDF). California Housing Finance Agency. p. 4. Retrieved November 28, 2014. 
  13. ^ a b c "California Governor's Budget 2014-15: Enacted Budget Detail: 2260 California Housing Finance Agency: Mission Statement". California Department of Finance. Retrieved November 28, 2014. 

External links[edit]