SACRAMENTO, Calif. — Housing advocates, nonprofit leaders and state lawmakers rallied Monday to urge Gov. Gavin Newsom to restore funding for CalHome, a long-running state program that helps low-income first-time buyers become homeowners but was eliminated in this year’s budget.
They’re asking for a $500 million restoration in the 2026-2027 state budget.
The call comes as California continues to grapple with both a severe budget deficit and a persistent housing affordability crisis, prompting advocates to warn that cutting long-term housing investments will worsen the state’s instability.
Guillermo Elenes, a Sacramento Habitat for Humanity homeowner who celebrated one year as a homeowner, told the crowd that owning a house had once felt impossible.
“But the moment that we knew it was ours … it really felt like a dream,” he said.
Elenes and his family purchased their home through Habitat for Humanity, which relies heavily on CalHome grants to build and finance affordable units. The program’s removal, advocates say, jeopardizes hundreds — even thousands — of projects already underway.
The $500 million to CalHome would allow roughly 500 ready-to-build homes to move forward and support thousands more in the pipeline.
State Sen. Angelique Ashby, a Sacramento Democrat, said CalHome would never be targeted under normal budget conditions
“In an everything budget, this would never get cut,” Ashby said.
Maureen Sedonaen, CEO of Habitat for Humanity San Francisco, said this year marks the first time in years the program has been fully removed from the state budget.
“CalHome is the only state program that tackles the supply side of affordable homeownership for lower-income buyers,” she said. “When you invest in people … you’re investing in a community where people can remain long term.”
Sedonaen added that the state only funds about 30% of program costs, as local municipalities contribute their share, as do these first-time homeowners by paying their mortgage.
Assemblymember Maggy Krell said affordability remains the top issue facing the state, while Sedonaen added that CalHome’s structure keeps homes affordable permanently by allowing the nonprofit to repurchase units when owners move and sell them to another low-income family.
In addition to seeking restored funding, lawmakers are pushing a proposed $10 billion housing bond that—if approved by the Legislature—would go before voters on the June 2026 ballot.
“If you hear about a bond that might be on its way, lace up your walking shoes,” Ashby said.
The Governor’s office said it cannot comment on pending budget deliberations.
Offices for Assembly Speaker Robert Rivas and Senate Leader Mike McGuire did not respond to requests for comment.