Legislature Approves $11.25 Billion Affordable Housing Bond

Sacramento, CA – Today, in a significant step to address California’s housing shortage, the State Senate voted to pass SB 417, the Veterans and Affordable Housing Bond Act of 2026. Governor Gavin Newsom is anticipated to sign the measure, which would appear on the November 2026 statewide ballot. 

“The Senate’s passage of the Veterans and Affordable Housing Bond Act of 2026 gives Californians a meaningful opportunity to invest in our future by accelerating the development of tens of thousands of shovel-ready homes across the state,” said State Senator Jesse Arreguín, Chair of the Senate Housing Committee. “From lifting people out of homelessness to expanding pathways to homeownership, this bond makes a significant investment in affordability and stability. I am proud to have advocated for dedicated funding for youth and student housing, ensuring young Californians have the stable housing and resources they need to achieve independence and thrive as adults. This $11.25 billion bond advances proven housing solutions that will make the California Dream more attainable, affordable, and accessible for generations to come.”

The bond would expand funding for a range of housing and community development programs, supporting affordable rental housing, homeownership, and farmworker housing in California. The measure is set to appear on the November 3rd general election ballot. 

In May, the median house sold for $930,000, and in the Bay Area the average home costs close to $1.5 million — which is out of reach for most working families. In order to meet growing demands, the Department of Housing and Community Development estimates that the state must plan for more than 2.5 million new homes by 2031, a scale of construction that cannot be achieved without significant public investment. SB 417 proposes to place this statewide housing bond on the November general election ballot, enabling California to leverage matching federal resources, such as housing tax credits, and maximize state dollars further. These investments will support the creation of tens of thousands of affordable homes and generate thousands of high-paying construction jobs across the state. 

The bond includes the following allocations:

• $5.1 billion for the Multifamily Housing Program
• $1.25 billion for home aid for veterans (via revenue bonds)
• $1.15 billion for the Housing Rehabilitation Loan Fund
• $750 million for the Portfolio Reinvestment Program
• $600 million for the CalHome homeownership program
• $500 million for the Home Purchase Assistance Fund
• $500 million for the Infill Infrastructure Grant Program
• $450 million for the Joe Serna, Jr. Farmworker Housing Grant Fund
• $350 million for new affordable student housing projects at UCs and CSUs
• $200 million for the Tribal Housing Grant Program
• $200 million for the Affordable Housing Innovation Fund
• $200 million for the acquisition and rehabilitation of existing affordable homes

The bond will also expand local infrastructure capacity and innovative local housing

programs to leverage other funding sources. Infill infrastructure grants will be made available to local governments and affordable developers to help pay for infrastructure necessary to make housing feasible. Resources will be provided for local and regional housing trust funds to leverage local, federal, private, and philanthropic dollars for innovative projects responsive to local needs.