03/18/2026
Back in January, Governor Newsom released a preliminary state budget for the 2026-2027 fiscal year. However, this budget included a total of zero new dollars of funding sources for affordable housing production across California. The California budget should reflect our state’s priorities, and it should be a priority for every Californian working family to have a safe and affordable place to call home. Today, affordable housing advocates will be urging legislators to allocate new funding for the necessary housing programs that protect our communities from the injustices of housing stability.
Working-class families promote economic success for the state, and the state should be able to promote similar success in the form of stable housing. When families have stable housing, they are able to invest time to their communities, to their children, and can achieve more.
A network of affordable housing leaders, homelessness advocates, and housing justice organizations are urging Governor Newsom to reconsider allocating new funding sources in a coalition letter. They call for:
• $500 million for the Low-Income Housing Tax Credit (LITHC): State tax credits provide critical gap funding so that California can fully utilize federal tax credits.
• $500 million,including at least $60 million for Project Sustainability for the Multi-Family Housing Program (MHP): The state’s primary affordable housing funding program for new construction and preservation of existing affordable housing.
• $200 million for the Portfolio Reinvestment Program (PRP): This program prevents conversion of HCD-funded affordable housing to market-rate housing units.
• $500 million for the Calhome Program: the only state program that increases the supply of affordable, for-sale, entry level homes
• $100 Million for Joe Serna Jr. Farmworker Housing Grant Program: Serna funds new construction, rehabilitation, and acquisition of owner-occupied and rental homes for agricultural workers, prioritizing lower-income households.
• $1 billion for the Homeless Housing, Assistance and Prevention (HHAP) Program: funding for homelessness prevention, shelter, and services, and rental assistance for permanent housing.