California lawmakers set to put $11 billion housing bond on November ballot

Leaders in the State Senate and Assembly, alongside Gov. Gavin Newsom, announced Monday they had reached an agreement to place an $11.25 billion housing bond on the November ballot. 

The Veterans and Affordable Housing Bond Act of 2026 would allow the state to make long-term investments in the state's affordable housing, construction and homeownership programs. The Legislature is expected to pass the Act this week, sending it to Newsom to be signed for it to appear before voters in November.

“For far too long, our state failed to build enough housing to meet the needs of growing families and communities,” Newsom said in a statement. “We’re once again turning the page on decades of inaction and making bold investments needed to tackle one of our state’s greatest challenges.”

The bond, Senate Bill 417, would direct $1.25 billion to the CalVet Home Loan Program to help veterans purchase homes. The rest of the money, $10 billion, would be allocated to financing the “construction, rehabilitation, acquisition and preservation of affordable housing for lower-income Californians,” according to the Legislature.

The Legislature estimates the investments will help more than 40,000 Californians purchase homes through improved down payment assistance, mortgage financing and other support. Tens of thousands of new homes will be built and thousands of construction jobs would be created.

The bond would also specifically invest roughly $5 billion into the state’s Multifamily Housing Program, the leading pathway for affordable housing in California. Projects receiving development funding from the program would be required to reserve at least 10% of its units for low-income households.

“California has been building toward this moment. We’ve cut red tape, fast-tracked construction, protected renters,” said Assembly Speaker Robert Rivas (D-Salinas). “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. This is California delivering.”

Over the last 10 years, the state has averaged fewer than 80,000 thousand new homes a year, according to the state’s Department of Housing and Community Development. This figure is well below the estimated 180,000 new homes needed each year to combat the housing crisis.

Also contributing to the state’s housing challenges is the fact that the majority of Californians who rent pay more than 30% of their income toward rent, making home ownership an even more unattainable dream.

The bond would need at least 50% voter approval to pass in November.