California Rejects Construction Fast-Track Measure, Approves Billions for Housing
Voters authorized $36.25 billion in housing bonds while preserving existing environmental review requirements
By Greg Cornfield November 9, 2026 2:28 pm
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California voters rejected Proposition 45, a ballot measure that would have streamlined environmental reviews for housing, infrastructure and other development projects, the Associated Press projected.
Backed by the California Chamber of Commerce and major developers, the measure sought to accelerate construction by imposing tighter deadlines on environmental reviews and legal challenges under the California Environmental Quality Act.
Opponents argued the changes would weaken environmental protections, limit public participation and encourage suburban sprawl. Some groups saw it as a Trojan horse designed to open the door for more data centers.
Californians also voted 60.9 percent to 39.1 percent for Proposition 1, authorizing $11.25 billion in general obligation bonds to finance affordable housing construction, rehabilitation and homeownership assistance. Of that amount, $10 billion will support housing programs, including multifamily rental developments, while $1.25 billion will finance home loans for veterans.
The measure also provides funding for supportive housing, student housing and low-income homebuyers. State analysts estimate the bonds could support approximately 40,000 rental units and help 40,000 households purchase homes.
California voters, too, approved Proposition 37, authorizing up to $25 billion in revenue bonds to provide down-payment assistance to middle-income homebuyers purchasing newly constructed homes. Eligible households can earn up to twice their area’s median income, adjusted for household size. Unlike Proposition 1, the program would be financed through bonds backed by borrower repayments rather than the state’s general fund.
Also, Los Angeles voters approved Measure TE, creating a one-time exemption from the city’s Measure ULA transfer tax, commonly known as the “mansion tax,” for properties damaged or destroyed in the January 2025 Palisades fire.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
