California voters to decide on $11.25 billion housing bond in November

California faces a significant housing shortage impacting affordability and homelessness, with over 180,000 residents homeless and rents requiring extensive work hours for minimum wage earners, according to the National Low Income Housing Coalition, Times of San Diego reported.

Proposition 1, an $11.25 billion general obligation bond on the November ballot, aims to provide funding to build various types of housing including for veterans, homeless individuals, renters, homeowners, farmworkers, students, and tribes, the report said.

Supporters argue the state urgently needs this funding to increase housing construction, while critics question whether bond financing is the appropriate method to address the crisis.

The bond would require the state to repay between $500 million and $600 million annually over about 25 years from the general fund, factoring in interest, with $1.25 billion allocated for veterans housing to be repaid through veteran loan payments, according to the legislative analyst.

Despite legislative efforts to ease housing development, fewer than a third of California cities and counties are on track to meet state housing targets, and many affordable units remain stalled due to insufficient funds, the report noted.