California voters to weigh $11.25 billion affordable housing bond

Alan Riquelmy

SACRAMENTO, Calif. (CN) — California voters will decide this November whether to approve an $11.25 billion housing affordability bond, Democratic leaders announced Monday.

Governor Gavin Newsom and top lawmakers in both legislative chambers touted the Veterans and Affordable Housing Bond Act of 2026, which will head to voters after they reached an agreement. They said the measure will help fund construction, keep affordable housing in place and expand people’s chances of owning a home.

“California’s future depends on whether people can afford to put down roots, raise a family, and build a life here,” Newsom said in a statement. “Through this historic bond, we’re giving voters the opportunity to help more Californians achieve homeownership, expand access to affordable housing, and give more families a real shot at the California Dream.”

Lawmakers are expected to pass Senate Bill 417 this week, placing the measure on the ballot. Newsom is expected to sign it.

Of the $11.25 billion package, $10 billion in general obligation bonds would fund the construction, purchase and rehabilitation of affordable housing for lower-income residents. The remaining $1.25 billion in self-supporting revenue bonds would support the CalVet home loan program, helping veterans and military families purchase homes. Those bonds are repaid through mortgage payments rather than taxpayer funds.

Newsom’s office said the measure would help more than 40,000 people buy homes through downpayment assistance and mortgage financing, targeting veterans, first-time buyers and lower- to moderate-income households struggling with upfront costs.

Additionally, the governor’s office said it will help build or preserve tens of thousands of affordable homes for people at risk or experiencing homelessness, as well as seniors, veterans and farmworkers.

The homes must stay affordable for 55 years, which Newsom’s office called a long-term investment that will solidify communities for generations.

The governor also pointed to tens of thousands of high-paying construction jobs the bond measure will support.

“We’ve cut red tape, fast-tracked construction, protected renters,” Assembly Speaker Robert Rivas said in a statement. “And now, we’re going bigger: $11.25 billion for affordable housing to expand homeownership for veterans and working families, drive down costs and prove that the door to opportunity is open to everyone.”

The measure is intended to attract outside investment and expand its reach. According to Newsom’s office, every $1 invested by California would leverage roughly $4 in federal tax credits, local funding, private financing and rental revenue.

Assemblymember Buffy Wicks, an Oakland Democrat, said California cannot afford to wait. She noted that two-thirds of low-income renters are financially burdened, while the state faces a shortage of 1.2 million affordable housing units and more than 170,000 unhoused residents.

Newsom’s office said affordable housing consistently ranks among Californians’ top concerns.

Fewer than 20% of households can afford a median-priced single-family home, according to the governor’s office, and most renters spend more than 30% of their income on housing.

“But what gets lost when we’re counting housing units and debating dollars and cents is that we’re really talking about families who need a roof over their heads,” Wicks said. “Time and time again, we say that housing affordability and homelessness are top priorities, so it’s incumbent on us to put our money where our mouth is and invest in housing programs that have proven their ability to deliver real results.”

State Senator Christopher Cabaldon, a Yolo County Democrat, called it the biggest investment ever made in the CalVet home loan program.

Senate Republicans opposed the measure when it appeared before them earlier this year.

“At a time when California faces a multi-year structural deficit in the tens of billions of dollars, this initiative is the wrong approach because it would increase state debt that must be repaid from the General Fund,” state Senator Tony Strickland, a Huntington Beach Republican, told Courthouse News in a statement. “A better solution is the California Middle-Class Homeownership and Family Home Construction Act of 2026, which would expand housing supply and make homeownership more attainable for middle-income Californians through private revenue bonds. By lowering downpayment requirements and encouraging the construction of new homes for middle-income buyers, this measure offers a fiscally responsible path to helping more families achieve the dream of homeownership.”

That measure, along with several others, are among the propositions voters will decide this November.

A one-time, 5% tax on billionaires is slated for the ballot. A measure requiring voters to show photo ID at the polls is also headed to the general election.