Why this historic investment is needed now
Californians continue to cite housing affordability as their number 1 priority.
Only
17% of California households can afford to purchase a median-priced
single-family home, while more than half of renters are “rent
burdened,” spending more than 30% of their income on housing. As the
largest recurring expense for most Californians, housing costs play a
central role in overall affordability.
Today’s
proposal follows a series of housing regulatory reforms enacted in
recent years to facilitate housing development — including sweeping CEQA exemptions enacted last year to boost housing production and infrastructure statewide.
The
proposed Veterans and Affordable Housing Bond Act of 2026 would provide
funding for affordable housing and homeownership programs, including
assistance for veterans, middle- and lower-income households,
affordable rental housing, and interim and supportive housing for
people experiencing homelessness. The proposal also includes funding to
support veterans’ homeownership, affordable rental housing,
homeownership assistance, farmworker housing, housing and
infrastructure for tribal communities, student housing, and other state
housing programs.
“California
has been building toward this moment. We’ve cut red tape, fast-tracked
construction, protected renters. 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.” Speaker of the Assembly Robert Rivas
“The
agreement reached today is the reflection of the hard work done in the
Legislature to address and respond to the critical housing needs that
Californians are facing across the state. The Legislature continues to
prioritize access to housing in the Golden State for everyone. Thank
you to leaders in both the Senate and Assembly, as well as Speaker
Rivas and Governor Newsom, for working together to deliver billions of
dollars to support needed housing.” Senate President pro Tempore Monique Limón
What the bond will do
The bond is expected to help more than 40,000 Californians purchase a home by
providing down payment assistance, affordable mortgage financing, and
other homeownership support. These investments will help veterans,
first-time and lower- to moderate-income homebuyers overcome the
upfront costs of purchasing a home and make homeownership more
attainable.
It will also support the creation or preservation of tens of thousands of affordable homes for
lower-income Californians, including seniors, farmworkers, veterans,
and people experiencing or at risk of homelessness. Because these homes
must remain affordable for at least 55 years,
the bond represents a long-term investment that will expand housing
opportunities and strengthen California communities for generations to
come.
The bond will also support tens of thousands of high-paying construction jobs as new housing is built across California.
It is also designed to maximize taxpayer dollars by
leveraging significant outside investment: for every $1 invested by the
state, an estimated $4 in federal tax credits, local funding, private
financing, and resident rents will help finance these developments,
allowing California to build substantially more housing than state
dollars alone could support.
“We
all know the stats in California—two-thirds of lower-income renters are
rent-burdened, 170,000 people are unsheltered, and we are 1.2 million
units short of the affordable housing we need. 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.
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. What we can’t afford is to wait.” Assemblymember Buffy Wicks (D-Oakland)
“With
one vote, California will build tens of thousands of new homes, prevent
existing affordable housing from disappearing, and help Californians
who need a hand to buy a home or partner with organizations like
Habitat for Humanity. The legislation builds rooftops for homeless and
foster youth, students, and farmworkers, and supports our veterans with
the largest-ever investment in the CalVet home loan program.” Senator Christopher Cabaldon (D-Yolo)
About the Veterans and Affordable Housing Bond Act
The Veterans and Affordable Housing Bond Act of 2026 (Senate Bill 417) includes:
- $1.25
billion in self-supporting revenue bonds for the CalVet Home Loan
Program, expected to help veterans and military families achieve
homeownership. These bonds are repaid entirely through mortgage
payments and do not rely on taxpayer funding.
- $10
billion in voter-approved general obligation bonds to finance the
construction, rehabilitation, acquisition and preservation of
affordable housing for lower-income Californians.
- Investments in the Multifamily Housing Program, the state’s flagship affordable housing program.
- Targeted
investments to expand affordable housing and homeownership
opportunities for Californians with the greatest housing needs,
including farmworkers, tribal communities, college students, homeless
and at-risk youth, lower-income households and moderate-income
first-time homebuyers
- Tens of thousands of high-paying construction jobs.
