DATE: SEPTEMBER 29, 2026
DEPARTMENT: ADMINISTRATION
FROM: PATRICIA M. SORATOS, DEPUTY CITY MANAGER/
CITY CLERK
LISA MURPHY, ASSISTANT CITY MANAGER
TITLE: PROPOSITION 1: THE VETERANS AND AFFORDABLE HOUSING BOND ACT OF 2026 RECOMMENDED MOTION:
A motion to approve a Resolution in support of The Veterans and Affordable Housing Bond Act of 2026, which authorizes $11.25 billion in state general obligation bonds to fund several housing affordability programs.
EXECUTIVE SUMMARY:
The Veterans and Affordable Housing Bond Act of 2026 would authorize the state to issue $11.25 billion in general obligation bonds to fund several categories of existing housing programs. Programs include the Multifamily Housing Program, Infill Infrastructure Grant Program, CalHome Program, Farmworker Housing, Tribal Housing Grant Program, Higher Education student housing, Local pilot programs, and Veterans’ Housing.
BACKGROUND:
The Veterans and Affordable Housing Bond Act of 2026 is a measure placed on the Nov. 3, 2026 ballot by the Legislature that would replenish existing housing programs for the development, preservation, and rehabilitation of affordable housing projects. Additionally, the measure would provide funding to support the development of youth and veteran housing and promote homeownership in California. The specific funding allocations proposed in the ballot measure are as follow:
$5.1 billion to the Multifamily Housing Program.
$1.25 billion to provide farm and home aid for veterans under the Veterans’ Farm and Home Purchase Act of 1974. $1.15 billion to the Housing Rehabilitation Loan Fund, to be used for supportive housing. Up to 15% shall be used to assist in the acquisition, conversion, or rehabilitation of interim housing to permanent housing. $750 million to the Portfolio Reinvestment Program to preserve existing affordable housing projects. $600 million to the CalHome Program.
$500 million to the Home Purchase Assistance Fund for home purchase assistance programs. $500 million for the Infill Infrastructure Grant Program to assist in the construction and rehabilitation of infrastructure to support high-density, affordable, and mixed-income housing in infill locations. $450 million to the Joe Serna, Jr. Farmworker Housing Grant Fund to support housing for agricultural employees and their families. $350 million for new affordable student housing projects. $200 million to fund the acquisition and rehabilitation of unrestricted housing units and attach long-term affordability restrictions on housing units. $200 million to the Affordable Housing Innovation Fund to assist local housing trust funds in developing, owning, lending, or investing in affordable housing. $200 million to the Tribal Housing Grant Program to help tribes rebuild and reconstitute their communities. $150 million for youth housing defined as housing for current or former foster youth, homeless minors or youth, or youth at risk of homelessness.
Proposition 1 would allow the state to sell $11.25 billion in general obligation bonds for housing purposes. This amount consists of (1) a $10 billion bond for a variety of housing programs that would be repaid by the state’s General Fund and (2) a $1.25 billion bond that would be repaid by veterans’ payments on their home loans. According to the Legislative Analyst’s Office, Prop. 1 would provide subsidies for as many as 40,000 multifamily rental units and about 1,200 beds for university students. The funds could also help up to 40,000 households, including about 2,100 veterans, with homeownership.
Proponents of the measure argue that it gives Californians the opportunity to provide housing to working families, veterans, people with disabilities and seniors; helps prevent homelessness by keeping vulnerable persons in their homes; expands homeownership opportunities; and maintains strict fiscal accountability and transparency without new taxes. The measure would also jumpstart the construction of tens of thousands of shovel-ready affordable homes across California.
The League of California Cities, which has long supported investments that increase the supply of affordable housing, also supports Prop. 1. Cal Cities maintains that, if approved by the voters, Prop. 1 would replenish funding for several successful state programs used by cities to support affordable housing and infrastructure. Prop. 1 could also fund innovative local programs like regional housing trusts and support cities in meeting their Regional Housing Need Assessment (RHNA) goals for current and future cycles. In addition to funding new affordable housing projects, the measure would fund the rehabilitation and preservation of existing affordable housing, increase funding for homeownership programs, and support specific housing projects such as student housing, infill development, supportive housing, and foster youth housing. No argument against Proposition 1 was submitted to the California Secretary of State.
The City supports affordable housing through public funding, financing assistance, and projects serving seniors, farmworkers, families, people with disabilities, and other vulnerable residents. Continued funding is needed to support senior housing, self-help, owner-occupied farmworker housing, mixed-income projects, single-family subdivisions, housing for people with disabilities, large-unit family rental housing, single-room-occupancy complexes, and innovative infill projects designed to encourage the development of smaller daycare facilities. The City will continue to support affordable housing as a priority; however, the scale of future success will be contingent upon available financial resources from Federal, State and other programs.
The City of Salinas is a member of the League of California Cities and supports Cal Cities’ 2026 Advocacy Priority to secure investments to increase the supply of affordable housing, including state and federal programs that assist in providing financing for affordable housing, as well as the development of fiscal tools and incentives to assist local governments in their efforts to encourage housing and finance the infrastructure to support housing and the establishment an ongoing state commitment for funding affordable housing.
CEQA CONSIDERATION:
Not a Project. The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).
CALIFORNIA GOVERNMENT CODE §84308 APPLIES:
No.
STRATEGIC PLAN INITIATIVE:
This report meets the City of Salinas Strategic Plan goal of Housing as it supports funding for the replenish existing housing programs for the development, preservation, and rehabilitation of affordable housing projects.
DEPARTMENTAL COORDINATION:
This report was prepared in coordination between the City Manager’s Office and the Community Development Department, Housing Division as Proposition 1 directly relates to and impacts housing production and support services.
FISCAL AND SUSTAINABILITY IMPACT:
According to the nonpartisan Legislative Analyst's Office, the state General Fund cost to repay the bond would be $500 million to $600 million annually for about 25 years. The estimated annual cost would be about one-quarter of 1% (0.25%) of the state’s total General Fund budget. There is no fiscal impact to the City’s General Fund.
Fund
General Ledger Number (Operating/CIP)
General Ledger Account Name
Remaining Budget Appropriation
Amount Requested
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ATTACHMENTS:
Resolution
Bill Text – SB 417
LAO Analysis: Proposition 1
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CITY OF SALINAS
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