The Veterans and Affordable Housing Bond Act of 2026 is a proposed $11.25 billion affordable housing bond measure to help not only people who have served in the military but also other low- and moderate-income households.
Proposition 1 would authorize the issuance and sale of general obligation bonds to fund affordable housing and home ownership programs, speed up housing production and preserve affordable housing.
Specifically, $1.25 billion would go to the CalVet Home Loan Program. These bonds would be repaid through mortgage payments and, therefore, would not cost regular taxpayers money.
Another $10 billion would fund other affordable housing projects, including the construction, rehabilitation, acquisition or preservation of housing units, and provide for affordable rental housing as well as interim and supportive housing for people facing homelessness.
Targeted investments would be made to help Californians with the greatest housing needs, including farmworkers, tribal communities, college students, homeless and at-risk youth, lower-income households and moderate-income first-time homebuyers.
The proposal was hammered out between Gov. Gavin Newsom and Democratic legislative leaders during this year’s budget negotiations.
According to the governor’s office, the bond would provide down payment assistance, affordable mortgage financing and other supports that would enable over 40,000 Californians to become homeowners.
In addition, the measure would result in the creation or preservation of tens of thousands of affordable homes, as well as tens of thousands of high-paying construction jobs, according to Newsom’s office.
According to an analysis of a bill introduced by Senate President Pro Tem Monique Limón, D-Santa Barbara, to place Proposition 1 on the November statewide ballot, the total cost, including principal and interest, to taxpayers for the $10 billion portion of Proposition 1 that would not go toward the CalVet program is estimated to be $17.39 billion.