After months of tough negotiations, California’s FY 2025–26 state budget(link is external) restored funding for several critical affordable housing and homelessness programs, reversing earlier proposals that left them unfunded.
We appreciate Gov. Gavin Newsom and the Legislature for restoring funding to the State Low-Income Housing Tax Credit(link is external) Program, Multifamily Housing Program(link is external), and the Homeless Housing, Assistance and Prevention Program(link is external). These investments mark a significant turnaround from the Governor’s January Proposal and May Revision(link is external), which proposed no funding for core housing efforts.
Continue Advocacy
While these are one-time investments and many vital programs remain unfunded, this outcome represents hard-fought progress during a challenging budget session. Every dollar committed in these proven programs brings California closer to building more affordable homes and addressing homelessness at scale.
Enterprise, alongside our partners, will continue to work with state leaders, local governments, and community partners to develop long-term investment strategies that prioritize significant ongoing funding to address our state’s urgent homelessness and housing needs.
Together, we will continue to urge for long-term investments in affordable housing and homelessness solutions to move toward a future where all Californians have a safe, stable, affordable place to call home.
Budget Investments
The final 2025 budget agreement draws heavily from the Legislature’s proposal(link is external) released on June 9, which sought to restore critical funding to affordable housing and homelessness programs that were absent from the Governor’s May Revise(link is external) and January Proposal(link is external).
The final budget includes:
State Low Income Housing Tax Credit program (LIHTC): $500 million allocated
Multifamily Housing Program (MHP): $120 million allocated
Homeless Housing, Assistance, and Prevention (HHAP): $500 million allocated for FY 2026-2027
The Governor’s Reorganization Plan
The budget agreement also approved the resources needed for the implementation of the proposed Governor’s Reorganization Plan(link is external) to divide the current Business, Consumer Services, and Housing Agency into two new agencies: the California Housing and Homelessness Agency and the Business and Consumer Services Agency.
As we shared in our May Revise Blog, the restructuring is a major step forward in streamlining affordable housing finance in California. It positions the state to be more effective when more resources are available for housing and homelessness.
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