Affordable rental deals usually need a layer of soft debt behind the tax credit equity and the senior loan. In California, much of that layer comes from state programs that make low-interest loans for part of the project cost in exchange for 55 years of affordability, as the Legislative Analyst's Office (LAO) describes them. The state has long refilled those programs with general obligation bonds.
But the California Budget & Policy Center says the 2018 housing bond was fully committed by the end of 2023, and that the Multifamily Housing Program is routinely oversubscribed by roughly 9 to 1. At the federal level, FY2027 HUD funding runs on a continuing resolution through December 11. The House committee bill would set HUD at $80.1 billion in gross budget authority, $4.1 billion below FY2026. The Senate, which has not released its THUD bill, does not return for business until November 9.
Shelterforce counts more than 50 housing measures on 2026 ballots in 21 states. The largest is California's Proposition 1, on the November 3 ballot, which would authorize $11.25 billion in general obligation bonds. The total splits into $10 billion repaid from the General Fund and $1.25 billion for veterans' home loans. Of the $10 billion, $7.2 billion would go to affordable multifamily programs. The measure also sets aside $450 million for farmworker housing and $500 million for infrastructure serving affordable developments. The LAO puts the repayment cost at $500 million to $600 million a year for about 25 years.
Rhode Island voters will consider a $120 million housing bond. Charlotte has a $125 million bond for low- and moderate-income housing on the ballot, Raleigh a $101.5 million bond, and Baltimore up to $22 million for affordable housing, including its trust fund.
A yes vote authorizes the borrowing, and the LAO says the funds would be allocated over a number of years. Sponsors with California pipelines should keep Prop 1 dollars out of a 2027 capital stack until the state publishes its first funding notice. The LAO estimates the bond would fund up to 40,000 subsidized rental units. The Budget Center counts 46,000 affordable homes across 491 developments already waiting for final state funding.