Bill
LD 1238
Establish a state-backed Small-Cap Loan Guarantee Program to boost financing for small affordable-housing projects by guaranteeing portions of loans.
LD 1238 – Summary
Overview
- Title: An Act To Establish A Small-Cap Loan Guarantee Program For Affordable Housing Investments
- Purpose (as indicated by the title): To create a state-backed loan guarantee program intended to support small-capital investments in affordable housing.
- Status: DEAD. The bill was placed in Legislative Files pursuant to Joint Rule 310.3 after failing to progress in the session.
Key provisions (as described by the bill’s title; exact statutory text not provided here)
- Establishment of a Small-Cap Loan Guarantee Program: The bill would create a program designed to guarantee a portion of loans used to fund affordable housing investments that involve smaller loan sizes (small-cap loans).
- Target and objectives: The program would aim to facilitate investment in affordable housing by increasing lenders’ willingness to finance smaller projects or smaller loan amounts, thereby expanding access to capital for developers and households.
- Administration and governance: While not specified in the summary, such programs are typically administered by a state housing agency, development authority, or a related government department, with rules for eligibility, underwriting standards, and oversight.
- Financial structure: The bill would likely outline the guarantee terms (e.g., guarantee percentage, caps, coverage of defaults), funding sources, and potential costs to the state (e.g., reserve requirements, risk-sharing mechanisms).
- Accountability and reporting: Programs of this type commonly include reporting requirements to track performance, defaults, and impact on affordable housing production or preservation.
Who would be affected
- Affordable housing developers and sponsors pursuing small-scale projects.
- Lenders and financial institutions considering loans for affordable housing investments.
- Residents and communities benefiting from increased affordable housing supply, assuming projects proceed.
- State government and taxpayers, to the extent of any financial exposure or funding commitments linked to guarantees.
Procedural and timeline notes
- Introduced: March 25, 2025.
- Committee: Referred to the Committee on Housing and Economic Development (March 25, 2025).
- Work session and votes: Work session held April 29, 2025; Voted ONTP (Ought Not To Pass) on the same date.
- Reported out: May 22, 2025 (ONTP).
- Final status: May 27, 2025 – Placed in Legislative Files (DEAD) under Joint Rule 310.3, indicating no further action for the session.
Impact if enacted (hypothetical)
- Potentially expanded access to financing for small affordable housing projects through loan guarantees.
- Increased private capital participation in affordable housing with reduced lender risk.
- Fiscal impact dependent on guarantee terms, reserves, and actual default experience; without a passed measure, no program would be in place.
Compiled from official sources — confirm details with the bill’s official record.
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