By Vanguard Staff
SACRAMENTO, Calif. — The California Legislature has approved an $11.25 billion affordable housing bond that, if signed by Gov. Gavin Newsom as expected, will appear before voters on the Nov. 3 statewide general election ballot as the Veterans and Affordable Housing Bond Act of 2026.
The legislation, SB 417, passed the State Senate this week and represents one of the state’s largest proposed investments in affordable housing, homeownership and housing infrastructure in recent years. The measure is designed to expand funding for affordable rental housing, housing for veterans, farmworker housing, student housing and infrastructure needed to support new residential development across California.
Supporters argue the bond is necessary to address California’s ongoing housing shortage, rising home prices and growing affordability crisis while leveraging additional federal housing resources.
“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 Sen. 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,” Arreguín added.
He also highlighted provisions directed toward younger Californians.
“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,” Arreguín said.
“This $11.25 billion bond advances proven housing solutions that will make the California Dream more attainable, affordable, and accessible for generations to come.”
According to supporters of the legislation, California continues to face one of the nation’s most severe housing affordability challenges.
The legislation cites housing market data showing the median California home sold for approximately $930,000 in May. In the Bay Area, average home prices are approaching $1.5 million, placing homeownership beyond the reach of many working families.
State housing officials estimate California must plan for more than 2.5 million additional homes by 2031 to meet projected demand. Supporters contend achieving that level of production will require substantial public investment alongside private development.
If approved by voters, the bond would allow California to leverage additional federal housing funding, including federal housing tax credits, with the goal of stretching state dollars further while supporting the construction of tens of thousands of affordable homes statewide.
Supporters also say the investments would generate thousands of construction jobs while expanding affordable housing opportunities throughout California.
The largest single allocation in the proposal is $5.1 billion for the state’s Multifamily Housing Program, which finances affordable rental housing developments.
The bond would also provide $1.25 billion in homeownership assistance for veterans through revenue bonds and $1.15 billion for the Housing Rehabilitation Loan Fund.
Additional funding includes $750 million for the Portfolio Reinvestment Program, $600 million for the CalHome homeownership program and $500 million for the Home Purchase Assistance Fund.
Another $500 million would be dedicated to the Infill Infrastructure Grant Program to help finance infrastructure needed to support housing construction.
Farmworker housing would receive $450 million through the Joe Serna Jr. Farmworker Housing Grant Fund.
The proposal also includes $350 million for new affordable student housing projects at University of California and California State University campuses.
Tribal housing initiatives would receive $200 million through the Tribal Housing Grant Program, while another $200 million would be allocated to the Affordable Housing Innovation Fund.
An additional $200 million would be dedicated to acquiring and rehabilitating existing affordable housing.
Beyond direct housing construction, the legislation includes funding intended to expand local infrastructure capacity and strengthen innovative local housing programs.
Under the proposal, infill infrastructure grants would be available to local governments and affordable housing developers to help finance roads, utilities and other infrastructure necessary to make residential projects feasible.
The legislation also would provide resources for local and regional housing trust funds intended to leverage local, federal, private and philanthropic funding for housing projects tailored to community needs.
The measure now awaits Gov. Gavin Newsom’s signature. If signed, California voters will decide the fate of the $11.25 billion bond during the Nov. 3 general election.
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Too bad that 16 acres for Affordable housing got voted down just in time so that Davis won’t be in line for any of those billions.
Time will tell whether the voters of California will approve another increase to their taxes in this November election. Both the principal and the interest of the bond have to be paid off with tax dollars. There isn’t a free lunch.
I personally will be voting for it, but many Californians who already feel overburdened by high taxes will not be.
Usually these bonds are re-payed by those living in the housing and will end up being revenue neutral to the State. But I’m willing to see the exact language.
Ron, how are people who can’t afford a market rate home (and have low enough income to qualify for the below market subsidies) going to afford to pay off the bond principal and interest?
Do you read your own words before you post them?
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.
Now apologize for you rudeness Matt.
Ron, now you are gaslighting and moving the goalposts. Not a single person from No on V said anything about any unworthiness of the 39,880 shovel-ready affordable homes in those 461 developments ready to begin construction but stalled due to a lack of funding.
In fact, if you had bothered to read the SmartCitiesDive article that was linked at least a half dozen times, you would have known that those 39,880 units of housing ”would benefit an estimated 432,050 low-income households over the next half century.”
If you had bothered to read what we provided you wouldn’t have erroneously felt insulted by figment of your imagination rudeness.
Reading is fundamental Ron.
No Matt you all said that the Affordable housing at VF would never be built. You were right but only because V failed. Sadly you can’t even admit that the coming surge of money for Affordable housing made your pronouncements obsolete as I pointed out at the time.
You and your Nimby compatriots now own the lack of Affordable housing. What are you going to do about it? So far it looks like you will do what you have consistently done for years, nothing.
Any Affordable housing funds that aren’t used at a site like Village Farms are then available for other sites across the state.
But hopefully, voters will reject the proposed tax increase in the first place.
And in Davis, you’ve already seen how even the spectre of funding is used to justify market-rate sprawl.
Folks, you’re supporting sprawl and YIMBYs every time you support Affordable housing funds, by increasing taxes on yourselves.
Honestly, it seems like those who vote for bond measures think that “someone else” is going to pay for them.
Now you know why there’s been a big fake housing shortage campaign, with few even questioning how the numbers were derived.
As far as the federal housing bill is concerned (the one which might fail in the first place), it apparently does not contain any direct, new funding for Affordable housing.
Hey, maybe they could use that $11.25 billion (if it’s approved) to fund Affordable housing on farmland that’s ALREADY ALLOWED under Measure J – without even a vote.
What could go wrong?
Well, any time you pump money into a market, the prices rise.
So as usual, those paying taxes will fund this via more taxes to pay this off, while prices will rise for non-subsidized units.
This will make most people pay for, the working poor, as usually, getting the screw.