As part of final budget negotiations, Legislative leadership and Governor Newsom agreed to the specifics of an $11.25 billion housing bond and an additional $1.7 billion for housing and homelessness. Voters will determine the housing bond’s fate in November’s general election, where it will appear as one of 14 ballot measures.
The agreement to pass SB 417 (Limón), the Veterans and Affordable Housing Bond Act of 2026, marked a critical component of state budget negotiations that put housing and homelessness resources as a priority. The final breakdown represents a wide swath of preexisting programs that would be replenished with passage, as well as a few investments that are new. These include the purchasing of affordability within existing market rate housing, resources to the UC and CSU systems for affordable student housing, and investments to California Tribal communities.
| Veterans and Affordable Housing Bond Act of 2026 | |
| Multifamily Housing Program (MHP) | $5.1 B |
| Permanent Supportive Housing | $1.15 B ($150 M to address youth housing) |
| Portfolio Reinvestment Program (PRP) | $750 M |
| Purchasing of affordability covenants in existing housing | $200 M |
| CalHome | $600 M |
| Homeownership Assistance through CalHFA | $500 M |
| Joe Serna Farmworker Housing | $450 M |
| Tribal Housing Grant Program | $200 M |
| Infill Infrastructure Grant Program (IIG) | $500 M |
| Affordable Student Housing split evenly to UC and CSU | $350 M |
| Local Housing Trust Funds | $200 M |
| Veterans Homeownership | $1.25 B |
| Total | $11.25 B |
Funds to programs for new construction of affordable rental housing are expected to be administered through the newly created Housing Development Finance Committee (HDFC), likely beginning in 2027.
The agreement to place the Veterans and Affordable Housing bond on the ballot marks the culmination of a nearly two-year effort but is not the only good news for housing and homelessness resources.
The final budget includes an additional $1.7 billion for housing and homelessness, including:
- $900 million for the Homeless Housing, Assistance and Prevention (HHAP) program
- $500 million in enhanced state Low Income Housing Tax Credits
- $200 million for the Multifamily Housing Program
- $100 million in a new Disaster Rebuilding Fund to expand availability and affordability of construction loans for homeowners rebuilding after a disaster.
These outcomes mark a significant improvement from Governor Newsom’s proposed January budget, which proposed no new resources for housing and homelessness, reflecting the continued focus on housing and affordability by California policymakers.
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