WATCH: Senators announce $11B housing bond amid deficit

“This bill dedicates more than $11 billion to not only increase supply across our state, but also to ensure that Californians from all income levels can keep a roof over their head,” Limón said at a Tuesday afternoon press conference announcing the bond.

“Affordability is not just a one-and-done," Limon told reporters at the Capitol in Sacramento.

The bond would allocate billions of dollars in new home construction and acquisition and rehabilitation of existing homes, among other aims, Limón said. Any new construction of multi-family housing, like apartment buildings, must designate at least 10% of the new units as affordable housing units to qualify for any of the money from SB 417.

In addition, $150 million would pay for housing for former foster youth and homeless young adults, Limón continued. And $1.25 billion would be funneled toward veterans’ homeownership programs through the California Department of Veterans Affairs, often known as CalVet.

“Homeownership is a major purchase for so many, no doubt, but for a veteran, it’s a welcome home,” Sen. Bob Archuleta, D-Norwalk, said. “It provides stability for their children, builds lasting relationships and to be part of a neighborhood.”

The billions of dollars from this bond complement communities’ efforts across the state to secure financing and permits and meet zoning requirements to build affordable housing, Sen. Christopher Cabaldon, D-Napa, said at the press conference.

“They’ve done all the hard work,” Cabaldon said. “They got everything that they need to go. All they need is the last bit of financing for those projects to become roofs, to become homes.”

According to an analysis of Senate Bill 417,  $5.25 billion will be allocated to building multi-family housing, $250 million for the Tribal Housing Grant Program. Farmworkers will also be helped by the bond – $250 million will go toward the Joe Serna Jr. Farmworker Housing Program, which will also help tribal communities to finance housing.

The bond will ultimately be decided on by voters at the polls during the Nov. 3 general election, but the bill to place the bond on the ballot has to pass in the Assembly before it heads to a vote in the Senate.

Data from the California Debt & Investment Advisory Commission shows that so far this year, the state’s bond debt issuance has gone down since 2025. Last year, $102.91 billion of bond debt was issued, which dwarfs the 2026 debt issuance load of $32.75 billion, The Center Square previously reported.

That same commission released a report earlier this year showing that the state’s overall debt load between state- and locally-issued bonds exceeded $99 billion, according to previous reporting by The Center Square.

Notably, amid the state’s $16.9 billion budget deficit, senators defended the decision to move a bond to the voters later this year, saying that they kept the state’s budget woes in mind as they look at ways to solve the homelessness crisis.

“What has been a constant is the priority that our voters in California have placed on housing,” Limón said. “It is the prioritization of the voters that gives us the confidence to move this forward.”