The Question

Should the state authorize $10 billion in bonds to fund affordable housing programs, and $1.25 billion in bonds for home loan assistance for California veterans?

The Situation

California faces a shortage of affordable housing. Home prices and rents are among the highest in the nation. Many households, including families with low incomes, veterans, farmworkers, students, older adults, and people experiencing homelessness, struggle to find housing they can afford.

The state currently funds affordable housing programs that help build and preserve housing, provide homeownership assistance, and support infrastructure related to housing development. California also operates the CalVet Home Loan Program, which has helped veterans purchase homes through state-backed loans for more than 100 years.

Voters previously approved housing bonds in 2018 and 2024. These funds are largely committed, and additional funding is needed because housing costs continue to rise.

The Proposal

The Legislature placed Proposition 1 on the ballot to authorize the state to issue $11.25 billion in general obligation bonds.

The measure would provide:

• $7.2 billion for affordable multifamily housing, including supportive housing
• $1.1 billion for homeownership assistance programs
• $500 million for housing-related infrastructure projects
• $450 million for farmworker housing
• $350 million for student housing at the University of California and California State University systems
• $200 million for tribal housing programs
• $200 million for local housing pilot programs
• $1.25 billion for the CalVet Home Loan Program

Fiscal Effects

According to the Legislative Analyst’s Office, the state would pay about $500 million to $600 million each year for about 25 years to repay the $10 billion housing bond portion of the measure. Repayment would come from the state’s General Fund.

The $1.25 billion veterans home loan portion would be repaid through loan payments made by participating veterans and is not expected to create direct state repayment costs.

Supporters Say

• Prop 1 would help build and preserve affordable housing for veterans, seniors, working families, people with disabilities, and others struggling with housing costs — all without raising taxes.
• The measure would help prevent homelessness and expand opportunities for homeownership.
• Investing now in housing will strengthen communities and support California’s long-term housing needs.

Opponents Say

No argument against Proposition 1 was submitted for the Official Voter Information Guide. Critics of bond measures generally argue that:

• Bonds increase long-term state debt because taxpayers repay both the borrowed amount and interest.
• Money used to repay bond debt may reduce funding available for other state priorities in future years.