On Tuesday, Californians face a ballot featuring multiple housing-related measures, including a proposed $11.3 billion bond initiative for affordable housing initiatives and a potential revision to the California Environmental Quality Act. Proposition 1 would allocate roughly $11.3 billion in general-obligation bonds, with $10 billion earmarked for state housing programs and $1.3 billion designated for veterans’ housing loans.
$7.2 billion would support affordable multifamily housing programs, potentially financing up to 40,000 multifamily units, including apartments for families, seniors, students, farm workers, tribes and homeless Californians. David Garcia, deputy director of housing policy at UC Berkeley’s Terner Center for Housing Innovation, notes that this measure would replenish the state’s existing affordable housing program funds.
Addressing the Housing Crisis
Garcia noted that the programs funded by Proposition 1 are essential for the state to keep pace in building the types of homes Californians need. He also mentioned that recent changes at the federal level, such as the 21st Century Road to Housing Act, could allow developers in California to build even more homes than before. The act raised the public-welfare investment caps from community banks from 15 percent to 20 percent, which is expected to better capitalize Low-Income Housing Tax Credit-based affordable projects.
Welton Jordan… said that if approved, Proposition 1 will also pair well with the Housing Development Finance Committee, a new state entity launched in July to streamline, centralize and align the state’s multifamily affordable housing finance system and production programs. He called the bond “a great opportunity for the citizens of California to say yes to something that you can look and see a tangible benefit in the very near future.”
Nicolle Aube, president and principal planner at Civex, a Newport Beach-based planning and engineering firm, agrees that the bond funding could accelerate the completion of many pending projects. She highlights the potential for a quick turnaround, with projects funded by Prop 1 possibly finishing within a year or two.
Local Rent-Control and Eviction Initiatives on the Ballot
“We’ve been following several ballot measures across the country on a variety of topics,” Nicole Upano said. She said that in Salinas, the city is already in the process of repealing its rent control and just cause eviction ordinances and instead refocusing on things like rental assistance and making significant investments not just to build more apartments but to support renters in the short term with their needs.
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The National Apartment Association is also tracking a Cudahy measure that would require voter approval to raise the current 3 percent ceiling on annual rent increases and demand two-thirds City Council approval for any amendment or repeal. Measure S in San Pablo would cap annual rent hikes at the lesser of three percent or 60 percent of CPI. In Santa Monica, voters will consider proposals that expand just-cause eviction protections and modify the city’s rent-control framework.
Streamlining Environmental Reviews
Proposition 45 calls for amending CEQA to create strict timelines for certain developments deemed “essential,” such as some housing, infrastructure, telecommunications, water and clean energy. The goal is to speed up permitting by tightening time limits for environmental reviews, public input periods and legal challenges. According to Garcia, the amendment would add structure to the CEQA process without eliminating it.
Amelia Matier, who is helping run the vote-yes campaign for the proposition sponsor, the California Chamber of Commerce, also stressed that the change would not end CEQA. “The whole idea is to create mechanisms so people can have more expectation of regularity in building, which will really bring down the cost,” she said. Opponents, particularly environmental activists, argue that large projects with serious community impacts should undergo a heightened process rather than a shortened one.
Nicole Upano… noted that NAA members have been very supportive of the statutory exemption and the reforms that the state legislature imposed in 2025. She said Prop 45 may be a more controversial approach for all types of qualifying essential projects, but we do see that through line of the benefits for housing projects between Prop 45 and building on what’s already been done through AB 130 and Senate Bill 131. But Garcia noted the language in the proposition is not clear-cut regarding data centers. “My sense is that it could be the source of litigation in the future,” he said.
Locally, at least six ballot measures in the state would change municipal rent control, eviction laws or both.
Redwood City’s Measure E proposes a 5 percent rent control cap for multifamily units built before February 1, 1995, along with eviction restrictions and relocation payments of up to $12,000 per household. Upano criticizes the measure as a detrimental step for housing. The mayor and City Council oppose it, estimating annual implementation costs at $11 million.
