November bond measure could provide billions in funding for affordable housing and veterans housing

Cities can show their support by adopting Cal Cities’ sample city resolution

By Kristine Guerrero, senior director of public affairs

This November, California voters will have 14 statewide ballot measures to consider, including Proposition 1 — which would allow the state to sell $11.25 billion in general obligation bonds for the development, preservation, and rehabilitation of affordable housing and veterans housing. Cities can voice their support for the measure, also known as the Veterans and Affordable Housing Bond Act of 2026, by using Cal Cities’ sample city resolution.

"Prop 1 is a once-in-a-generation opportunity to tackle California's housing crisis," said Ray Pearl, executive director of the California Housing Consortium, a Navy veteran, and Westlake Village City council member. "I know this crisis from both sides. Veterans who've earned a place to call home, seniors on fixed incomes, teachers and firefighters who can't afford to live in the communities they serve — they're all counting on us.”

Cal Cities has long supported investments that increase the supply of affordable housing. If approved by the voters, Prop. 1 would replenish funding for several successful state programs. The state would repay the bond — the largest such bond since 2018 — through its General Fund and a tax-exempt, self-supporting veterans bond.

The types of affordable housing programs Prop. 1 would fund include:

• Multifamily housing. Prop. 1 provides $7.2 billion to acquire, build, or renovate rental housing, such as apartment buildings. These programs generally provide local governments and private developers with low-interest loans to help fund part of the project cost. Some of this funding would be used for supportive housing, which provides on-site services (such as mental health and substance use counseling) to certain residents.
• Homeownership. Prop. 1 provides $1.1 billion to support homeownership among low- and moderate-income households. Some of the funds would be used to provide first-time homebuyer loans that generally do not have to be paid back until the home is sold or paid off. Some funding would help nonprofits and other organizations acquire land to build homes and repair existing homes for eligible low-income households.
• Infrastructure. Prop. 1 provides $500 million for a variety of infrastructure projects that support affordable housing developments, such as water, sewage, parks, and transportation improvements.
• Farmworker housing. Prop. 1 provides $450 million in loans and grants to build or renovate housing for farmworkers.
• Higher education student housing. Prop. 1 provides $350 million, split evenly between the University of California and California State University, for affordable student housing.
• Tribal housing. Prop. 1 provides $200 million in grants to tribes that could be used for various housing-related purposes, including construction and repair.
• Local pilot programs. Prop. 1 provides $200 million that would be available to cities, counties, and other entities for pilot projects that develop housing at reduced costs.

Prop. 1 also provides $1.25 billion for home loan assistance to veterans. Veterans participating in the program would make monthly payments to the state, allowing the state to repay the bonds.

For cities, Prop. 1 could provide an infusion of support for the state’s long-running housing affordability challenge. It could also fund innovative local programs like regional housing trusts and help cities meet their Regional Housing Need Assessment goals for current and future cycles. 

“Prop. 1 gives cities the tools to build the homes California needs, and that's why so many local governments, business groups, and senior and veterans groups across the state are united behind it," Pearl said.

According to the nonpartisan Legislative Analyst’s Office, Prop. 1 would provide subsidies for as many as 40,000 multifamily rental units and about 1,200 beds for university students. The funds could also help up to 40,000 households, including about 2,100 veterans, with homeownership.

Cities can support Prop. 1 by adopting Cal Cities’ sample resolution. For more information about how to get involved, contact your regional public affairs manager or email ballotmeasures@calcities.org.