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San Francisco and California Ballot Backstory · Why is this on my ballot?

Prop 1: summary

Authorizes Bonds for Housing Affordability Programs

Mark your own choices here. You may bring this sheet into the voting booth.

YES

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.

NO

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.

Both ovals are empty on purpose. The choice is yours.

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.

Why it’s on the ballot now

  1. 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.

  2. 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.

  3. 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.

  4. 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.

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.

Needs a simple majority (50% + 1) to pass Some measures need 55% or two-thirds of votes to pass. This one needs only a simple majority.

Who bears the cost

State taxpayers, through the General Fund (no new tax)

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.

Veterans who take state home loans

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.

The strongest case for and against

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.

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.