Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Supervisor Lisa Gauthier, District 4
Supervisor Noelia Corzo, District 2
Subject: Resolution Endorsing Proposition 1, the Veterans and Affordable Housing Bond Act of 2026
RECOMMENDATION:
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Adopt a resolution endorsing Proposition 1, the Veterans and Affordable Housing Bond Act of 2026, which authorizes $11.25 billion in state general obligation bonds for affordable housing programs and the CalVet Home Loan Program.
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BACKGROUND:
Housing costs continue to place significant pressure on California households. Statewide, only 17% of households can afford the median-priced home. More than half of renters are considered rent burdened, including 65% of low-income renters, meaning housing costs consume more than 30% of household income.
Proposition 1 was placed on the November 2026 ballot through SB 417 (Limón, 2026), following an agreement among the Legislature and Governor on a statewide housing bond. The County supported an earlier version of the housing bond proposal during the 2026 legislative session.
Counties may adopt a position on the merits of a ballot measure, or proposed measure, so long as it does not use public funds or other resources to mount a campaign supporting or opposing the measure. (Vargas v. City of Salinas (2009) 46 Cal.4th 1, 36; see also League of Women Voters of California v. Countywide Criminal Justice Coordination Committee (1988) 203 Cal.App.3d 529 (authorizing endorsement of a statewide measure at a public meeting).
DISCUSSION:
If approved by statewide voters, Proposition 1 would allow the state to sell $11.25 billion in general obligation bonds for housing purposes. Of the total bond amount, $10 billion would be directed toward state programs that help finance affordable rental housing, supportive housing, affordable homeownership, housing preservation, infrastructure, farmworker and tribal housing, and affordable student housing. An additional $1.25 billion would support the CalVet Home Loan Program for eligible veterans and military families.
A significant share of the bond would replenish programs San Mateo County and local affordable housing developers already use. The proposal includes $5.1 billion for the Multifamily Housing Program and another $1.15 billion for supportive housing. The supportive housing allocation may also help convert interim housing to permanent housing, including Pacific Shelter in District 4 and El Camino House in District 2. Proposition 1 also includes funding for housing preservation, infill infrastructure, farmworker housing, CalHome, home purchase assistance, tribal housing, housing innovation, and affordable student housing.
For San Mateo County, the measure could help address a financing gap that already exists in the local affordable housing pipeline. Since the County's Affordable Housing Fund began in 2012, the Department of Housing has awarded financing for more than 5,100 affordable homes. About 1,000 additional homes are now in predevelopment and still need public funding before they can move into construction.
The need for additional state resources is substantial. The Department of Housing estimates that projects already in the County pipeline will need more than $90 million from the Multifamily Housing Program alone in the near term. Proposition 1 would replenish that program and other state funding sources that local projects use to assemble financing and move toward construction.
Recent projects show how state housing dollars can translate into homes in San Mateo County. Stone Pine Cove in Half Moon Bay received $5 million in Joe Serna, Jr. Farmworker Housing Grant funds for 46 affordable homeownership units for low-income farmworkers. Eucalyptus Grove in Burlingame received $15 million through the Multifamily Housing Program for 69 affordable rental homes. Cypress Point in Moss Beach received approximately $17.9 million from the Joe Serna and Multifamily Housing programs for 71 affordable rental homes. Laurel Landing in Menlo Park received $2 million through CalHome for eight affordable homeownership units.
Statewide, the Legislative Analyst's Office estimates cited in the California Voter Information Guide indicate that the bond could subsidize up to 40,000 multifamily rental units, approximately 2,500 farmworker housing units, and about 1,200 university student beds. The same analysis estimates assistance for up to 40,000 households seeking homeownership, including approximately 2,100 veterans.
From a statewide cost-perspective, the $1.25 billion veterans housing component is expected to have no direct state cost, as participating veterans will repay those bond proceeds through their home loan payments. However, the $10 billion portion of the bond, which is supported by the State General Fund, is estimated to cost the state approximately $500 million to $600 million annually for roughly 25 years, about 0.25% percent of the State General Fund budget. Because the bonds would require interest payments, the Legislative Analyst’s Office estimates that the total inflation-adjusted costs would be approximately 15% percent higher than if the state paid for the programs upfront.
A full analysis of the legislative proposal prepared by the County’s Intergovernmental and Public Affairs Unit can be found in the attached form.
The County Attorney has reviewed and approved the resolution as to form.
COMMUNITY IMPACT:
For San Mateo County residents, access to state housing funds can affect whether a project moves forward, is delayed, or remains unfunded. Additional state resources could help the County and its housing partners preserve affordable homes, advance projects already in development, expand rental and homeownership opportunities, and support residents with a range of housing needs, including veterans, farmworkers, students, low-income households, and people experiencing or at risk of homelessness. State funding can also help local dollars go further by bringing another source of financing to projects serving San Mateo County communities.
FISCAL IMPACT:
Adoption of this resolution will have no net County cost.