Proposed $11 billion state housing bond aims for November ballot

FRESNO, Calif. (KFSN) -- A statewide proposal to accelerate affordable housing development in California is moving closer to the November ballot, as lawmakers consider a plan introduced this week by Gov. Gavin Newsom.

The Veterans and Affordable Housing Bond Act of 2026 would authorize more than $11 billion in funding to help over 40,000 Californians secure housing if approved by voters.

The proposal includes $1.25 billion in self-supporting revenue bonds for the CalVet Home Loan Program, designed to assist veterans and military families with homeownership. Those bonds would be repaid through mortgage payments and would not rely on taxpayer funding. Another $10 billion would come from voter-approved general obligation bonds to support the construction, rehabilitation, acquisition and preservation of affordable housing for lower-income residents.

While voters would not be asked to approve a new tax, taxpayer dollars would ultimately repay the general obligation bonds.

In announcing the measure, Newsom wrote, "California's future depends on whether people can afford to put down roots, raise a family, and build a life here."

Supporters say the funding could help advance housing developments stalled by financial hurdles, including projects in Fresno.

One such project is the Park at South Stadium Apartments in downtown Fresno, which was approved by the City Council last week. The 74-unit development will bring both affordable and market-rate housing to the Brewery District.

"For a healthy downtown, healthy city, anywhere you want to have a mix, you want to guarantee continued access to folks from all walks of life," said Elliott Balch, CEO of the Downtown Fresno Partnership.

Balch said the project could improve walkability and help attract additional residents and investment to the area, potentially increasing Fresno's competitiveness for future funding opportunities.

"What are the kinds of urban amenities that make this affordable housing, not just the rent being affordable, but the whole living there being affordable, and of all the San Joaquin Valley, downtown Fresno is one of the places that really delivers that," he said.

Some community members, however, have raised concerns about the impact of construction on downtown activity, particularly during popular events.

"Come during Fresiyest, come during Art Hop, even, and there'll be hundreds of people not only parked in the stalls but sometimes set up as vendors," said Joseph Rodriguez, a local activist with Rehop Fresno.

The bond proposal must still clear the state Legislature. Both the Assembly and the Senate must pass the measure with two-thirds support by Thursday, the deadline for legislative proposals to qualify for the November ballot.

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