State Lawmakers Unveil $11.25 Billion Plan to Expand Affordable Housing

California lawmakers have announced a major proposal to address the state's housing affordability crisis: the Veterans and Affordable Housing Bond Act of 2026. The bond, totaling $11.25 billion, aims to expand homeownership opportunities for veterans and working families, drive down housing costs, and create tens of thousands of affordable homes across the state.

The proposal comes as Californians consistently rank housing affordability as their top concern. Currently, only 17% of California households can afford a median-priced single-family home, and more than half of renters are considered "rent burdened," spending over 30% of their income on housing.

As the largest recurring expense for most residents, housing costs are central to overall affordability.

The bond includes $1.25 billion in self-supporting revenue bonds for the CalVet Home Loan Program, which will help veterans and military families achieve homeownership. These bonds are repaid entirely through mortgage payments, not taxpayer funds.

An additional $10 billion in general obligation bonds, subject to voter approval, will finance the construction, rehabilitation, and preservation of affordable housing for lower-income Californians.

Assembly Speaker Robert Rivas emphasized the urgency, stating, "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."

The bond is expected to help more than 40,000 Californians purchase a home through down payment assistance, affordable mortgage financing, and other support. It will also support the creation or preservation of tens of thousands of affordable homes for lower-income residents, including seniors, farmworkers, veterans, and those experiencing homelessness.

These homes must remain affordable for at least 55 years, ensuring long-term community benefits.

Additionally, the bond will create tens of thousands of high-paying construction jobs. It is designed to maximize taxpayer dollars by leveraging 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 developments.

Assemblymember Buffy Wicks (D-Oakland) stressed the human impact, saying, "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."

Senator Christopher Cabaldon (D-Yolo) added, "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."

The bond will be on the 2026 ballot as Senate Bill 417, requiring voter approval. If passed, it represents a historic investment in California's housing future, targeting the state's most pressing needs with a focus on equity and long-term affordability.