California Proposition 1 proposes $11.25 billion housing bond

California voters will consider Proposition 1 this November, a measure that would authorize the state to issue $11.25 billion in general obligation bonds to address the state's housing crisis. The initiative aims to fund various housing needs, including homes for veterans, students, farmworkers, tribes, and those experiencing homelessness.

If passed, $7.2 billion of the funds would be allocated to buying, building, or renovating apartment buildings, primarily through low-interest loans to developers. These projects would be required to reserve a specific number of units for low-income households. Some funds would also support “supportive housing,” which provides additional services for the homeless.

The proposal comes as California faces significant housing shortages. Estimates suggest the state needs nearly 2.5 million more homes, yet fewer than 6% of cities and counties are on track to meet targets for very low-income housing. Additionally, reports indicate that approximately 40,000 affordable units are currently stalled due to a lack of developer funding.