FOR IMMEDIATE RELEASE

May 14, 2026

California Housing Consortium
Contact: Jonathan Underland
jonathan@paschalroth.com

Housing California
Contact: Tara Sreekrishnan
tsreekrishnan@housingca.org

Enterprise Community Partners
Contact: Karen Whitaker
Kwhitaker@enterprisecommunity.org

Affordable housing and homelessness coalition calls on Governor to “follow through on his housing promises” after revised May budget includes no new investments in affordable housing and homelessness

SACRAMENTO, CA — A coalition of affordable housing, homelessness, and housing justice organizations are calling on Governor Newsom to follow through on his housing promises to tackle the state’s affordable housing and homelessness crisis after the revised May budget released today includes no new investments in key affordable housing and homelessness programs

Leaving these programs unfunded will undermine the state’s efforts to safely house vulnerable Californians — and undercut the Administration’s stated goal of building one million more affordable homes over the next decade.

The coalition is urging the Governor and Legislature to prioritize $3.3 billion in critical investments this year to build affordable homes, prevent and end homelessness, preserve existing affordable housing, and promote homeownership, which are essential to keeping vulnerable Californians housed. Read the full coalition budget proposal, signed by 100 organizations.

Statements from the coalition in response to the Governor’s state budget proposal are below.

Ray Pearl, Executive Director, California Housing Consortium:

“This budget will be a true test of state leaders’ commitment to making California more affordable and bringing an end to our perennial housing crisis. Governor Newsom has proved to be a real champion for affordable housing, and we hope he will work closely with the Legislature to craft a final budget in June that makes housing the priority it should be. Californians are demanding action on housing affordability, and this budget and the passage of a housing bond later this year are the only way to deliver it. Now is the time to invest in programs that allow us to maintain our hard-earned housing momentum — and build more of the safe, affordable homes Californians need.”

Chione Lucina Muñoz Flegal, Executive Director, Housing California:

“California’s housing crisis is, at its heart, a question of whether families can meet their most basic needs and build stable, healthy lives. Today, far too many of our neighbors are struggling, spending more than half of what they earn just to keep a roof over their heads. Families are forced to make unconscionable choices between paying for rent, food, healthcare, and childcare. If we are serious about meeting the needs of the people most impacted by this crisis, California must take bolder action to sustain and grow investments to build and preserve affordable homes and end homelessness. We are committed to continuing to work with the Governor and the Legislature to ensure the final budget reflects and delivers the housing investments Californians are counting on.”

Matt Schwartz, President and CEO, California Housing Partner:

“At a time when housing affordability continues to be a top public concern and the state is far from achieving its goal of a million new affordable homes, it is critical that the current budget surplus be used in part to fund state housing programs. This is especially important now because prior state funding is exhausted and there is a rare opportunity to leverage $3 billion in new annual federal tax credits to accelerate affordable home production but only if there is new state funding to match. We urge Legislative leaders to work with the Governor’s office on a final budget deal that contains the maximum possible levels of state funding for affordable housing in alignment with our coalition’s requests.”

Jimar Wilson, Vice President and Southern California Market Leader, Enterprise Community Partners:

“In recent budgets, California has taken meaningful steps to address the housing shortage, but there’s more work to do. Budget priorities should center on building and preserving affordable homes for all Californians, while protecting the programs that help people experiencing homelessness rebuild stable lives. Time and again, these programs have proven they work, but they need reliable funding to live up to their promise.”

Sharon Rapport, Director of California State Policy, Corporation for Supportive Housing:

“HHAP has helped communities make progress in reducing homelessness across the state after decades of double-digit increases annually. No HHAP funds now — as federal policy turns away from proven cost-effective strategies like housing paired with support services — will increase homelessness in California by up to 22%. Changing course and funding HHAP appropriately would be a capstone to the Governor’s legacy for addressing homelessness through proven interventions.”

Debbie Arakel, CEO, Habitat for Humanity California:

“California cannot afford to halt its commitment to housing at a time when families in every region of the state are struggling to find stability. We appreciate the Governor’s focus on reducing development costs, improving efficiency, and strengthening the State’s housing and homeless infrastructure, but these tools are not a substitute for direct investment. Streamlining and structural reforms alone will not build the affordable homes California needs, preserve existing housing, or move families from housing insecurity to lasting affordability and intergenerational stability. The state has demonstrated that targeted investments across the spectrum of affordable housing solutions works. We are extremely disappointed to see CalHome, the state’s only program dedicated to producing and preserving affordable homes for purchase by families earning modest incomes, excluded for the third consecutive year. This stalls shovel-ready projects in communities across California and puts homeownership further out of reach for thousands of working families. We urge the Governor and Legislature to recommit to a housing strategy that meets the full scope of the crisis by funding CalHome and other proven solutions across the housing continuum.”

Alicia Fleming Sebastian, Executive Director, California Coalition for Rural Housing:

“Leaving our most critical housing programs unfunded at this volatile time in California’s history is a policy choice — and it’s one the Governor and the Legislature must reverse in the final budget. Investing in affordable housing for rural, Tribal, and farmworker communities — including homeownership opportunities for low-income families — is essential to California’s economy and our shared dignity.”

Amagda Perez, Executive Director, California Rural Legal Assistance Foundation:

“As leaders committed to ensuring justice and dignity for farmworkers and the rural poor, we are deeply troubled that the Governor’s May Revise proposal includes no new investment in affordable housing or homelessness solutions. In the face of harmful federal actions that continue to marginalize our beloved communities, California must lead with compassion, not austerity. Without dedicated funding for safe, stable housing, families will continue to be pushed to the margins and inequities will only deepen. We once again urge the Governor and the Legislature to prioritize investments in housing and to restore critical resources that protect the health, safety, and economic well-being of all Californians in the final budget.”