Title
Adoption of Resolution Supporting Proposition 1, “Veterans and Affordable Housing Bond Act of 2026,” on the November 3, 2026, California Statewide Ballot. (City Manager 10021030)
Body
To: Honorable Mayor and Members of the City Council
From: Gerry Beaudin, City Manager
EXECUTIVE SUMMARY
Proposition 1, the Veterans and Affordable Housing Bond Act of 2026 (Proposition 1), will appear on the November 3, 2026, California statewide ballot and will authorize the issuance of $11.25 billion in state general obligation bonds for housing purposes. If passed, Proposition 1 has the potential to provide funding for several affordable housing projects in Alameda and assist with housing for more than 80,000 households statewide. Support for this proposition is consistent with both the City of Alameda’s (City) Legislative Agenda and the Strategic Plan priority to “House All Alamedans and End Homelessness.”
BACKGROUND
Proposition 1: Veterans and Affordable Housing Bond Act of 2026
The state uses general obligation bonds to fund various housing programs. Bonds are a way for the state to borrow money to cover the upfront costs of a development and then repay the money plus interest over time.
Proposition 1 would authorize $11.25 billion in state general obligation bonds for housing affordability programs. 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 nonpartisan Legislative Analyst’s Office, Proposition 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. Additionally, the measure would provide funding to support the development of housing for youth and veterans and to promote homeownership in California. The League of California Cities (CalCities), a statewide association that advocates on state legislative and policy issues affecting California cities and of which the City is a member, has long supported investments that increase the supply of affordable housing and supports Proposition 1. CalCities maintains that, if approved by the voters, Proposition 1 would replenish funding for several successful state programs used by cities to support affordable housing and infrastructure.
The specific funding allocations proposed in the ballot measure are:
• $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
City Legislative Agenda
The City’s 2025-26 Legislative Agenda guides the City’s legislative advocacy efforts, allowing both staff and the City Council to respond quickly to most legislative issues as they arise and to ensure there is a formal City position on a variety of legislative matters. The Legislative Agenda states that any issues that develop and are not covered by the Legislative Agenda, issues that may conflict with one another, or issues that are of a significant and urgent nature, will be brought to the City Council for consideration.
As a general principle of the Legislative Agenda, the City seeks funding opportunities and partnerships with the county, state, and federal government for projects that reflect the City’s strategic priorities, including housing. However, because this item is a ballot proposition rather than a legislative bill, staff is seeking the City Council’s approval of a resolution to support Proposition 1.
DISCUSSION
In the 2023-26 Strategic Plan, City Council identified “House All Alamedans and End Homelessness” as one of its five strategic priorities. Housing is also identified as one of the seven Legislative Focus Areas in the Legislative Agenda.
The funding provided by Proposition 1 is consistent with many of the Housing goals in the Legislative agenda, including:
• Support the funding and development of affordable and middle-income housing for rent or purchase and continue efforts to increase transitional and permanent housing for people who are vulnerable, at risk, or unsheltered.
• Support measures and funding for those who face additional housing barriers, including unsheltered residents, veterans, seniors, and disabled members of our community.
• Support local, state, or federal measures to assist first time homebuyers.
• Secure additional resources to increase construction of housing, particularly affordable housing, workforce housing, and permanent supportive housing, and ensure cities retain flexibility based on the land use needs of each community.
• Support legislative efforts to provide a funding mechanism and other strategies to promote economic development and affordable and middle-income housing programs.
• Support the League of California Cities’ strategic advocacy priority to secure investments to prevent and reduce homelessness and increase the supply of affordable housing.
If passed, several affordable housing projects in Alameda may be eligible to apply for Prop 1 funding, including the Habitat for Humanity project in the North Housing Area, Phase 1B of the RESHAP project, Alameda Housing Authority’s Estuary II Project, and Alameda Point Collaborative’s McKay Avenue Senior Living Facility.
ALTERNATIVES
• Do not adopt a resolution to support Proposition 1.
FINANCIAL IMPACT
There is no financial impact to the City from supporting Proposition 1.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
City of Alameda 2023-26 Strategic Plan priority: House All Alamedans and End Homelessness
City of Alameda 2025-26 Legislative Agenda goal: Housing
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378 and therefore no further CEQA analysis is required.
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Adopt a Resolution supporting Proposition 1: California’s Veterans and Affordable Housing Bond Act of 2026.
Respectfully submitted,
Gerry Beaudin, City Manager
By,
Amanda Gehrke, Management Analyst
Financial Impact section reviewed,
Ross McCarthy, Finance Director
Exhibit:
1. 2025-26 Legislative Agenda