California
Prop 1Authorizes Bonds for Housing Affordability Programs
Watch the backstory
Read the transcript
In November 2018, voters approved a 4 billion dollar housing bond, including 1 billion for veterans' home loans.
This November, Prop 1 asks to borrow 11.25 billion dollars for housing and veterans' home loans. Why now?
In March 2024, the Legislative Analyst said discretionary state spending on housing and homelessness programs would soon run out, though some of it could be spent over several years.
The state's main affordable housing program has relied on bonds and one-time budget money.
The last state housing bond, in 2024, gave 2 billion dollars for housing for veterans and other people with mental health or substance use challenges who face homelessness.
If Prop 1 fails, the state does not borrow this 11.25 billion dollars.
Housing programs would rely on money already approved and what lawmakers add each year; the LAO says recent amounts were one-time.
We found no published plan of cuts tied to it failing.
In 2024-25, the LAO says, the state took back 641 million dollars in already approved money from several housing programs because of a budget problem.
The LAO says affordable housing builders generally need public money, and that a large state bond would increase money for the Multifamily Housing Program. It also says state law already commits roughly a billion dollars a year to affordable housing.
No official argument against Prop 1 was filed. The Howard Jarvis Taxpayers Association and the San Francisco Green Party recommend No.
Ten billion dollars would go to housing programs, mostly rentals, helping fund up to 40,000 rental units.
The LAO estimates repaying that part would cost 500 to 600 million dollars a year for about 25 years, paid by state taxpayers.
Supporters say Prop 1 raises no taxes. The LAO says the General Fund, which pays for most public services, would repay the 10 billion dollar housing part.
Veterans repay the 1.25 billion dollar home loan part through their loan payments.
The Legislature put it on the ballot by passing Senate Bill 417, and Governor Newsom signed it in June 2026.
A YES vote lets the state borrow 11.25 billion dollars, repaid with interest, for housing and veterans' home loans.
A NO vote means the state would not borrow this money, or pay 500 to 600 million dollars a year to repay its 10 billion dollar housing part.
Sources and the full analysis are at ballotbackstory.org.
Ballot Backstory. Why is this on my ballot?
What your vote does
A YES vote means
The state could borrow $11.25 billion through bonds (repaid with interest): $10 billion for housing programs, mostly rentals, and $1.25 billion for veterans' home loans. 3
A NO vote means
The state could not borrow this $11.25 billion, and would not pay $500 million to $600 million yearly to repay its $10 billion housing part. 3
Both ovals are empty on purpose. The choice is yours.
Authorizes Bonds for Housing Affordability Programs. Legislative Statute. Authorizes $11.25 billion in state general obligation bonds for housing affordability programs, including multifamily rental housing, mortgages for veterans, supportive housing, preservation of existing affordable housing, and downpayment assistance. Fiscal Impact: Increased state cost of $500 million to $600 million annually for about 25 years to repay the housing bond. Supporters: US Vets; CA Federation of Teachers; Self-Help for the Elderly; Habitat for Humanity CA; CA Alliance of Child & Family Services Opponents: None submitted
This is the exact wording from the official voter guide.
If it fails
If Prop 1 fails, the state does not borrow this $11.25 billion. Housing programs would rely on money already approved and on any money lawmakers add in a yearly budget; the LAO says recent amounts were one-time. This guide found no published plan of cuts tied to Prop 1 failing. 32425
- In 2018, voters approved $4 billion and $2 billion in housing bonds. An early-2025 LAO handout says that money has generally been committed to projects; the State Treasurer's 2026 report lists part of the 2018 housing bond as not yet sold. 2527
- The LAO says the 2026-27 state budget gives $200 million one time to the Multifamily Housing Program, the state's main affordable housing program. It also allows $500 million in state housing tax credits, for the eighth year in a row. 24
- In March 2026, the LAO said that all bond money and earlier General Fund money for the state housing department's multifamily rental programs had been awarded, except $120 million in one-time 2025-26 money for the Multifamily Housing Program. In recent years, the department awarded more than $500 million a year. 26
- The LAO says that if a large state bond passed, money for the Multifamily Housing Program would go up. It also says builders of affordable housing generally need public money for projects to work financially. 26
- The LAO says state law commits roughly a billion dollars a year to affordable housing. The current budget package assumes much lower ongoing money for one part of it. The LAO says federal law H.R. 1 could add up to $4 billion a year in "4 percent" housing tax credits. 252826
- Beyond what state law already commits each year, added state housing money is decided in each year's budget. In 2024-25, the LAO says, the state took back $641 million in previously approved money from several affordable housing programs because of a budget problem. 2425
Why it’s on the ballot now
In March 2024, the Legislative Analyst said that discretionary state spending on housing and homelessness programs would soon run out, with limited discretionary spending approved beyond 2023-24. It added that some of that money could be spent over several years. 12
In March 2024, about $130 million in older bond money was left for CalHome, a state homeownership program. The LAO said no more funding was approved beyond that. 12
The state's main affordable housing program has relied on bonds and one-time budget money. The 2025-26 budget gave it $120 million in one-time money. 10
The last statewide affordable housing bond, in 2024, gave $2 billion for housing for veterans and other people with mental health or substance use challenges who are facing homelessness. The last veterans' home loan bond, in 2018, gave $1 billion. 3
How we got here
Earlier housing bonds pass
Voters approved housing bonds in 2002 (Prop 46) and 2006 (Prop 1C). The state's Multifamily Housing Program – Supportive Housing is funded by them. 11
SB 2 adds ongoing housing money
The Legislature passed SB 2, which gives housing programs ongoing revenue in addition to bonds. 12
Voters pass 2018 housing bond
Voters approved Prop 1 (2018), which allowed $4 billion in bonds: $3 billion for state housing programs and $1 billion for veterans' home loans. 87
Voters pass 2024 behavioral health bond
Voters approved Prop 1 (2024), a bond for mental health and drug or alcohol treatment that included $2 billion to turn hotels and other buildings into housing and build new housing. 313
LAO: housing money running out
The Legislative Analyst said discretionary state spending on housing and homelessness would soon run out, though some already approved money could be spent over several years. 12
Homekey+ funding released
In November 2024, the state offered $2.145 billion for permanent supportive housing through Homekey+, a new program funded by Prop 1 (2024) bond money plus some other state homelessness funds. 914
Budget funds main housing program
The 2025-26 state budget gave the Multifamily Housing Program, the flagship affordable housing program of the state housing department (HCD), $120 million in one-time money. 10
SB 417 signed
Governor Newsom signed SB 417, placing the $11.25 billion Veterans and Affordable Housing Bond Act of 2026 on the November 2026 ballot. 6
Prop 1: Authorizes Bonds for Housing Affordability Programs
The money
Of the $10 billion: $7.2 billion for rental housing, $1.1 billion homeownership help, $500 million infrastructure, $450 million farmworker housing, $350 million UC/CSU student housing, $200 million tribal housing and $200 million local pilots. The LAO estimates repaying it costs $500 million to $600 million a year for about 25 years; it would help fund up to 40,000 rental units. 3
- Amount
- $11.25 billion borrowed; $500–600 million a year to repay
- How long
- About 25 years of repayment
- Who pays
- State taxpayers repay the $10 billion housing part from the General Fund, the account that pays for most state services. Veterans who get home loans repay the $1.25 billion part through their loan payments, which the LAO says has always cost the state nothing directly. 3
- Vote needed to pass
- Needs a simple majority (50% + 1) to passSome measures need 55% or two-thirds of votes to pass. This one needs only a simple majority.
The state constitution requires voters to approve most new state bonds. This one takes effect only if voters adopt it at the November 3, 2026, statewide election. 155
Locked-in budget
The state already repays about $80 billion in bonds from its General Fund, about $6 billion a year, or about 3% of its revenue, below the historical average of about 4%. About $40 billion more is approved but not yet sold. Prop 1 would add about $500 million to $600 million a year for about 25 years. 153
Who bears the cost
State taxpayers, through the General Fund (no new tax)
What they already pay
- The LAO says the state is now repaying about $80 billion of bonds from the General Fund, at about $6 billion a year. That is about 3% of the state's yearly General Fund revenue, below the past average of about 4%. 15
- The State Treasurer measures it differently. It estimates General Fund-backed debt payments at 3.83% of General Fund revenue in 2026-27, up from 3.41% in 2025-26. After about $1.68 billion of expected offsets, it puts 2026-27 at 3.09%. 27
- The LAO says voters and the Legislature have already approved about $40 billion more in General Fund bonds that have not yet been sold. 15
If it passes
- Supporters say Prop 1 raises no taxes. The General Fund, which the LAO says pays for most public services, would repay the $10 billion housing part. The LAO estimates $500 million to $600 million a year for about 25 years, about 0.25% of the General Fund budget. 34
- Because the state pays interest, the LAO says the total cost would be about 15% more, after inflation, than paying up front. The State Treasurer warns that higher interest rates raise the cost of debt, which can force trade-offs in the budget. 327
- Prop 38, an $8.4 billion research bond, is the other General Fund bond on this ballot. The LAO says it would cost about $500 million to $600 million a year for 20 years. Repaying both would cost about $1 billion a year, about 0.5% of General Fund revenue. 15
Veterans who take state home loans
What they already pay
- Under the state's veterans home loan program, veterans who take part repay the cost of the bonds through their home loan payments. 3
If it passes
- Veterans repay the $1.25 billion veterans part through their home loan payments. The LAO says this loan program has always run at no direct cost to the state. 3
Promised and delivered
CA Prop 1 (2018)
Promised
The LAO estimated the bond would help pay for up to 30,000 apartment and 7,500 farmworker households, help about 15,000 homebuyers with down payments, and give about 3,000 veterans home loans. 7
Delivered
As of June 30, 2024, the state housing department reported $2.34 billion in awards from this bond, covering 22,735 units; units from $178 million in local trust fund awards are not counted. San Francisco got about $197 million for 1,603 units. 11
CA Prop 1 (March 2024)
Promised
The bond gave $2 billion for housing. The state estimated it would build up to 4,350 housing units, with 2,350 set aside for veterans. 13
Who’s behind it
How it got on the ballot: State Legislature
The Legislature put it on the ballot by passing SB 417: 29 to 2 in the Senate and 61 to 7 in the Assembly. Governor Newsom signed it in June 2026. 26
Where the support comes from
Placed by who endorsed it and who funded it, not by our opinion. How we place measures
The California Democratic Party recommends Yes on Prop 1. The Howard Jarvis Taxpayers Association, a taxpayer group, recommends No, and the California Republican Party is neutral. SPUR and the League of Women Voters of California, both good-government groups, support it, while the San Francisco Green Party opposes it. The largest donors to committees supporting Prop 1 include Airbnb, Inc., Building a Better California and the Western States Regional Council of Carpenters Issues Committee, and no committee opposing it has reported contributions. 1820191621172223
Endorsements
| Group | YES | NO | Neutral |
|---|---|---|---|
| Progressive slate | |||
| San Francisco League of Pissed Off Voters | Yes | ||
| Harvey Milk LGBTQ Democratic Club | Yes | ||
| Moderate slate | |||
| GrowSF | Yes | ||
| Political parties | |||
| San Francisco Democratic Party | Yes | ||
| San Francisco Green Party | No | ||
| California Democratic Party | Yes | ||
| California Republican Party | Neutral | ||
| Other groups | |||
| SPUR | Yes | ||
| YIMBY Action | Yes | ||
| San Francisco Women's Political Committee | Yes | ||
| Alice B. Toklas LGBTQ Democratic Club | Yes | ||
| Edwin M. Lee Asian Pacific Democratic Club | Yes | ||
| Howard Jarvis Taxpayers Association | No | ||
| League of Women Voters of California | Yes | ||
Follow the money
YESTop donors
- Airbnb, Inc.$945.3K
Who is this?
Airbnb runs an online marketplace for short-term and long-term stays, experiences and services. It is based in San Francisco. 1
What they’ve said
Airbnb said it is proud to support Prop 1. It said the measure would speed up affordable homes held up only by funding, and help working families and essential workers buy homes. 2
- Building a Better California$944.3K
- Western States Regional Council of Carpenters Issues Committee$944.3K
Who is this?
A committee of the Western States Regional Council of Carpenters. The council's website says it represents members in Southern California and nine other western states. 1
- North Coast States Regional Council of Carpenters Issues PAC$944.3K
Who is this?
A labor news report says the North Coast States Regional Council of Carpenters, headquartered in Oakland, has 57,500 members. Its locals include ones in Northern California, Oregon and Washington. 1
What they’ve said
The union's 2026 California voter guide says to vote Yes on Prop 1, "to Continue Building Affordable Homes for Californians." 2
- NPH Action Fund Political Issues Committee$804.9K
- Mobilizing Economic Transformation Across (Meta) California$568.5K
Who is this?
A TechCrunch report, citing Politico, says Meta planned this committee to support California candidates who favor a light-touch approach to AI rules. Brian Rice, Meta's vice president of public policy, heads it. 1
- Pacific West Communities, Inc.$472.1K
Who is this?
Pacific West Communities is the affordable multi-family arm of TPC. TPC is based in Eagle, Idaho. 1
- Anthropic PBC$472.1K
Who is this?
Anthropic is an AI company based in San Francisco. Its main product is Claude, a family of language models. 1
- OpenAI OpCo, LLC (Adam Thompson)$472.1K
Who is this?
OpenAI is an AI company based in San Francisco. It makes AI models, such as the GPT series of language models. 1
- Housing Trust Silicon Valley$377.7K
Who is this?
Nonprofit housing lender for the greater Bay Area. 1
What they’ve said
A news report says Housing Trust said Prop 1 would help working families, with thousands of affordable homes ready to build. Its chief financial officer, Julie Mahowald, said, "They're ready to put shovels in the ground, but we need this money." 2
- The top 5 donors gave 31% of this side’s money.
- 4% came from outside California.
- Independent spending (not controlled by the campaign): $293.2K
Committees: Californians for Affordable Homes, Yes on Proposition 1, Sponsored by NPH Action Fund; Yes on Prop 1 Californians for Homes, Jobs and Affordability 2026, Sponsored by Affordable Housing Organizations; Yes on Prop 1, California Homeless and Housing Coalition Action Fund
- Yes on Prop 1 Californians for Homes, Jobs and Affordability 2026, Sponsored by Affordable Housing Organizations (FPPC 1485601) supports or opposes several measures; the Secretary of State attributes $13,873,674 of its $14,692,320 to this one. Donor amounts here are scaled by that same share (94%).
- Yes on Prop 1 Californians for Homes, Jobs and Affordability 2026, Sponsored by Affordable Housing Organizations: added $62,430 of 24-hour late contributions dated after the Secretary of State's 2026-10-22 cutoff.
- YES side: $724,517 given by one committee on this side to another was counted once.
- YES side independent expenditures (Form 496) of $293,172, mostly by: Committee to Save Our Neighborhoods, Sponsored by Alliance of Californians for Community Empowerment Action $96,500; Monique Limon Ballot Measure Committee to Advance California $93,128; Faith Votes, Sponsored by PICO California Action Fund $39,721. Separate from total_raised.
- No opposing committee has reported any contributions as of the refresh date.
- Committee totals are the Secretary of State's per-measure 'Total Reported Contributions' through 2026-10-22 (secretary of state page), plus later 24-hour reports from the Cal-Access bulk export built 2026-10-28. Donors, geography and independent expenditures come from the itemized Cal-Access filings. Contributions to committees that back several measures are credited pro rata to the share the Secretary of State assigns to this measure.
- Source cutoff: the Cal-Access export used was built 2026-10-27 (UTC) and the Secretary of State's per-measure totals run through 2026-10-22. as_of is the latest filing from this measure's own committees, which can be earlier.
- Money given to a committee by another committee is shown as that committee, not the money's original source (e.g. a union's issues PAC, not its members). Donor type is inferred from the name; check the filing for sponsors.
Sources: CA Secretary of State: Proposition 1 contribution totals · Cal-Access raw campaign finance data export · FPPC Top 10 Contributors, November 2026 General Election
Related and competing measures
The strongest case for and against
Each side’s best argument, written as its supporters would make it. Neither is our view.
Strongest case for
Supporters, including US Vets, the California Federation of Teachers and Self-Help for the Elderly, say a housing shortage is driving the nation's worst housing affordability crisis. They say more than half of renters spend over 30% of their income on rent, and only 22% of households can afford a median-priced home. Yet only 1% of the state budget goes to housing, they say. They argue Prop 1 would speed up building tens of thousands of affordable homes, help teachers, nurses and firefighters live where they work, and keep vulnerable people housed. They add that it sets aside $1.25 billion for veterans, raises no taxes, and requires public reporting. 4
Strongest case against
No official argument against Prop 1 was submitted. The Howard Jarvis Taxpayers Association and the San Francisco Green Party recommend No. The LAO lists these costs and related debt figures. Repaying the housing part would cost the state $500 million to $600 million a year for about 25 years. Because of interest, the total cost, after adjusting for inflation, is about 15% more than paying cash. Agencies would also have higher costs to run the programs, paid partly from bond funds. The state already repays about $80 billion in bonds, about $6 billion a year, and about $40 billion more is approved but not yet sold. If Prop 38 also passes, the two new bonds would cost about $1 billion a year in total. 43152017
Sources
Every fact on this page links to one of these sources.
- Ballot label: title (table of contents) and summary (Quick Reference Guide), Proposition 1 (en edition), CA Official Voter Information Guide, Nov 3, 2026, p. 3, 5
- Proposition 1: Official Title and Summary (prepared by the Attorney General), CA Official Voter Information Guide, Nov 3, 2026, p. 1
- Proposition 1: Analysis by the Legislative Analyst, CA Official Voter Information Guide, Nov 3, 2026, p. 1-4
- Proposition 1: Arguments and rebuttals, CA Official Voter Information Guide, Nov 3, 2026, p. 5-6
- Proposition 1: Text of Proposed Law, CA Official Voter Information Guide, Nov 3, 2026, p. 1-6
- Governor Newsom signs historic housing bond set for voters on the November ballot
- LAO: Proposition 1 (November 2018) Veterans and Affordable Housing Bond Act
- HCD awards $220 million for affordable multifamily housing developments
- HCD: Homekey+ reaches 1,517 homes funded (2024 Prop 1)
- LAO: The 2025-26 California Spending Plan: Housing, Homelessness and Local Government
- HCD Annual Report Fiscal Year 2023-24
- LAO: Update on Major Recent Housing Augmentations (March 2024)
- LAO: Proposition 1 (March 2024) Behavioral Health Services Program and Bond Measure
- California is reducing homelessness, with voter approved Proposition 1 funding delivering more affordable homes
- LAO: Overview of State Bond Debt, November 3, 2026 Ballot
- SPUR: recommendations for the November 3, 2026 election
- San Francisco Green Party: recommendations for the November 3, 2026 election
- California Democratic Party: recommendations for the November 3, 2026 election
- California Republican Party: recommendations for the November 3, 2026 election
- Howard Jarvis Taxpayers Association: recommendations for the November 3, 2026 election
- League of Women Voters of California: recommendations for the November 3, 2026 election
- How endorsers line up on Prop 1: this guide's coalition groupings (endorsement method 1.0, data as of 2026-10-27)
- Campaign finance filings as of 2026-10-26 (compiled by this guide from CA Secretary of State: Proposition 1 contribution totals; data/money/ca-2026-11-p1.json, main@0dcbec8)
- LAO: The 2026-27 California Spending Plan: Housing, Homelessness, and Local Government
- LAO: Overview of State Funding for Affordable Housing Production (Feb 27, 2025)
- LAO: The 2026-27 Budget: Streamlining California's Affordable Housing Funding System
- State Treasurer: 2026 Debt Affordability Report
- LAO: The 2026-27 Budget: Overview of the Spending Plan