Gov. Gavin Newsom is hoping to end his term by providing California residents another opportunity to purchase homes, as he proposed an $11 billion housing affordability bond aimed at boosting residential construction and homeownership rates.
The governor’s office announced on June 22 that Newsom, the state Senate, and the Assembly have reached a deal to place the Veterans and Affordable Housing Bond Act of 2026 on the ballot in November.
Described by Newsom’s camp as “historic,” the proposed ballot measure includes $10 billion in voter-approved general obligation bonds to pay for the construction, rehabilitation, acquisition, and preservation of affordable housing for lower-income Californians, including down payment assistance and low-interest mortgage financing.
These bonds would be repaid through state tax revenues over the next 35 years—a fact that raised concern among some Republican legislators.
Assemblymember Buffy Wicks, a Democrat from Oakland, Calif., said passing the measure will help get 40,000 already approved and shovel-ready housing units.
“And when we talk about 40,000 units, we also have to remember that there are 40,000 families who need a stable roof over their head,” added Wicks.
The second component of the act includes $1.25 billion in self-supporting revenue bonds for the CalVet Home Loan Program, helping veterans and military families purchase homes.
Unlike the $10 billion in general obligation bonds, the revenue bonds are fully repaid through veteran mortgage payments and do not rely on taxpayer funding.
The act is designed to invest in multifamily housing programs and support low-income families, seniors, farmworkers, and college students in finding housing in one of the nation’s least affordable states. Just 17 percent of households can afford to purchase a median-priced single-family home, and more than half of renters are classified as cost-burdened in the Golden State.
“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,” said Wicks, citing California’s 1.2 million affordable housing unit shortage and the 170,000 people currently living on the streets. “What we can’t afford is to wait.”
The Senate, at the same time, passed a bipartisan housing bill on June 22, aiming to reduce federal regulations and expand local control, one of the most sweeping efforts in recent decades to increase supply and bring down prices.
The bill “acknowledges that the federal government has a role to play in lowering housing prices,” Massachusetts Sen. Elizabeth Warren told The Associated Press. “For the first time, private equity will be blocked from buying up single-family homes and trying to turn housing into one more Wall Street investment.”
