If you blinked, you may have missed everything that unfolded in Sacramento over the past few weeks. With key budget and policy committee deadlines converging, the Capitol experienced one of its busiest stretches of the year. In just the last 14 days, lawmakers navigated more than 40 committee hearings, late-night floor sessions, weekend negotiations over competing ballot measures, and ultimately finalized and enacted the 2026–27 State Budget.
Among the most significant developments for California’s housing community is the placement of the Veterans and Affordable Housing Bond (Proposition 1) on the November ballot. If approved by voters, the measure would provide critical investments across a broad range of housing programs, including:
$5.1 billion for the Multifamily Housing Program
$1.25 billion in veteran homeownership assistance through revenue bond
$1.15 billion for supportive housing through the Multifamily Housing Program
$750 million for the Portfolio Reinvestment Program
$600 million for CalHome
$500 million for the Home Purchase Assistance Fund
$500 million for the Infill Infrastructure Grant Program
$450 million for the Joe Serna, Jr. Farmworker Housing Grant Fund
$350 million for new affordable student housing projects
$200 million for the Tribal Housing Grant Program
$200 million for the Affordable Housing Innovation Fund
$200 million for the acquisition and rehabilitation of existing affordable housing
Voters will also consider Proposition 37, a separate housing-related bond measure focused on expanding homeownership opportunities. The proposal would establish a $25 billion mortgage assistance program for homebuyers earning less than 200% of their area’s median income. Eligible homebuyers could access fixed-rate mortgage financing of up to 17% of a home’s purchase price for properties valued below $1.5 million, with a minimum 3% down payment required from the purchaser.
The November ballot will also feature several tax-related measures stemming from months of behind-the-scenes negotiations between labor leaders and state officials. Despite significant efforts by Governor Newsom and others, the proposed billionaire tax (Proposition 40) remained on the ballot. In response, two competing measures have qualified that would effectively limit or offset the proposal’s impact. Proposition 41 would impose additional auditing and oversight requirements on new tax revenues while establishing provisions designed to counterbalance the wealth tax. Proposition 42 would prohibit new taxes on personal property, further reducing the potential reach of the billionaire tax initiative.
CCAH is also encouraged to see Proposition 45 on the ballot, a measure aimed at reforming the California Environmental Quality Act (CEQA) review and litigation process. Supporters believe the proposal would help remove local barriers to housing development and accelerate the production of much-needed housing throughout the state.
On June 29, Governor Newsom signed the final budget of his tenure into law. The enacted budget includes several notable victories for housing advocates, including $500 million in enhanced State Low-Income Housing Tax Credits, continuing a funding commitment that advocates have successfully secured year after year. The budget also provides an additional $200 million for the Multifamily Housing Program, further strengthening the state’s affordable housing pipeline. Please follow the link for a full description of each measure going before the voters November 3rd.
Another significant change included in the budget is the restructuring of California’s private activity bond allocation process. Under the new framework, 50% of the state’s bond authority will be administered by the newly established Housing Development and Finance Committee (HDFC), while the remaining allocation will continue under the Treasurer’s Office. HDFC will conduct an annual demand survey to assess anticipated bond needs, with any unused allocations returning to CDLAC for reallocation by March 1 of each year.
As California’s housing finance landscape continues to evolve, stakeholders across the industry will be closely watching the implementation of these changes. While challenges remain, these investments and structural reforms represent meaningful opportunities to expand housing production and affordability throughout the state. We remain cautiously optimistic about the road ahead and look forward to seeing how these changes shape the future of housing development in California.
The legislature begins its Summer Recess the afternoon of Thursday, July 3rd . We look forward to some quiet time in the Capitol as we prepare for a mad dash when they return in August.