SACRAMENTO — California state legislators are moving forward with a $10 billion bond proposal to fund affordable housing, even as a separate effort to tighten statewide rent control stalled in committee on Tuesday.

$10 Billion Housing Bond Progresses

Senate Bill 417, introduced by Senator Chris Cabaldon, aims to provide the funding needed to move housing projects from the paperwork stage to construction. The bill cleared the Senate Housing Committee last week and is scheduled to move to the Senate Appropriations Committee next week.

For the measure to appear on the June 2026 primary ballot, Governor Gavin Newsom must sign it by January 22, 2026.

According to the proposal, the bond would provide low-interest loans to help build and maintain rental housing for low-income families. As reported by CalMatters, the $10 billion would be distributed across three main categories:

  • $7 billion for apartment buildings and large rental projects
  • $2 billion for wildfire prevention, farmworker housing, and housing assistance for low-income tenants
  • $1 billion for down payment assistance for low-income, first-time homebuyers

The Senate Housing Committee also recently approved a proposal from Senator Caroline Menjivar to fund housing for homeless youth. Legislators may add this measure to the final $10 billion bond package.

Rent Control Expansion Fails

While the bond measure moved forward, an effort to lower the statewide cap on rent increases failed to advance. The Assembly Judiciary Committee voted down Assembly Bill 1157 on Tuesday, January 13.

The bill, introduced by Assemblymember Ash Kalra, sought to lower the maximum annual rent increase from 10% to 5%. However, the measure received only four of the seven required votes to pass. Committee members worried the bill would hurt landlords and said they would rather focus on building new homes than on tightening rent limits. Because the bill failed, the current 10% limit on rent increases stays in place.

Protecting Mobile Home Residents

Advocates say a loophole in an existing housing law, Senate Bill 79, puts mobile home residents at risk of losing their homes. While Senate Bill 79 was designed to encourage building large apartment complexes near major transit stations, it does not specifically protect mobile home communities.

Senator Aisha Wahab has introduced a proposal to close this loophole, which allows developers to replace these parks with larger buildings. During testimony, mobile home resident Gail Rubino estimated that roughly 5,400 people in 36 parks could lose their homes if developers replace them with new apartment complexes.

In a related effort to clarify the law, Senator Scott Wiener also plans to introduce a bill to help local officials understand Senate Bill 79. He says some city and county leaders are currently confused about where the law applies.

Leadership Transition

As these bills move forward, the Senate Housing Committee is also preparing for a change in leadership. Senator Jesse Arreguín is scheduled to become committee chair in February 2026, replacing the current chair, Senator Aisha Wahab.