Habitat California Holds Press Rally for CalHome Funding
FOR IMMEDIATE RELEASE
November 18, 2025
Contact:
Ellen Immergut
Habitat for Humanity California
ellen@habitatca.org | 619-379-5793
Habitat for Humanity California and Affordable Housing Advocates Call on Governor Newsom to Restore $500 Million in CalHome Funding
Press Event Highlighted Urgent Need for Affordable Homeownership Opportunities
SACRAMENTO, CA - Habitat for Humanity California hosted a press conference and rally on Monday, November 17, 2025 at the California State Capitol to urge Governor Gavin Newsom to include $500 million for the CalHome Program in the January 2026–27 State Budget proposal.
The event brought together state legislators, housing advocates, and community leaders united in their call to restore this critical funding source for affordable homeownership supply. The CalHome Program, administered by the California Department of Housing and Community Development (HCD), provides grants and loans to local municipalities and nonprofit home developers to create and preserve affordable, for-sale homes for working families.
The single state source for funding that produces new homes that low-income Californians can afford to buy, CalHome provides an affordable avenue out of lifelong rentership, and creating the new housing supply that down payment assistance leaves on the table.
“CalHome is a proven and effective strategy to address California’s housing affordability crisis,” said Debbie Arakel, Executive Director of Habitat for Humanity California. “When it was zeroed out in the 2025–26 budget, more than 5,000 homes in the pipeline were left without foundational resources to be built. Smart policy is investing in a permanent housing solution with a proven track record – CalHome is a no brainer. We’re calling on the Governor to invest in the future of working families striving for stability and security through homeownership.”
Homeownership: A Proven Pathway to Stability and Equity
Created in 2000, the CalHome Program helps local public agencies and nonprofit home developers - like Habitat for Humanity - create and preserve affordable homes for ownership. CalHome grants are awarded competitively to cities, counties, and nonprofits across the state, and include allocations in rural and urban communities.
Following a historic $350 million one-time investment in 2022, CalHome funding has since been clawed back, culminating in zero dollars allocated in the 2025–26 budget. The consequences are far-reaching. Nonprofit builders who are ready to build can’t break ground, and hundreds of low-income families who are financially ready for homeownership are prevented from achieving it. California has no remaining state-level funding source for building affordable, for-sale homes. Without CalHome, nonprofit developers lack the capital to build new supply, making the affordability crisis even worse.
"I'm a homeowner today because of Habitat for Humanity, and it has made a huge difference for my family,” said Guillermo Elenes, a Habitat Homeowner from San Francisco who is an advocate for the CalHome Program. “It means that we can count on our housing, provide stability for our son, and plan for bigger goals in the future, all because we have an affordable mortgage. I want to make sure my family isn't the last to have access to an affordable home we can own. That's why I'm speaking up for CalHome, so that many more can follow."
Why CalHome Matters Now More Than Ever
California’s homeownership rate ranks 49th in the country at just 56%, far below the national average of 65%.
Persistent racial homeownership gaps remain stark: the Latinx ownership rate is 18 percentage points lower and Black ownership rate 27 percentage points lower than for white households.
In 2024, only 18% of Californians could afford the state’s median-priced home of $865,440—more than double the national median.
Investors now own nearly 20% of all homes in California, further squeezing out working families.
The Case for Investment in CalHome
Restoring $500 million to CalHome in the 2026–27 budget would directly support the construction and preservation of thousands of affordable ownership homes statewide - from dense urban cores to rural and tribal communities.
CalHome investments:
empower families to build and transfer wealth across generations, creating lasting pathways out of poverty through homeownership.
reduce dependence on government assistance by promoting financial stability.
strengthen local economies by creating jobs, expanding the local tax base, stimulating home construction, and fostering community engagement.
foster health, education, and civic benefits that come from stable homeownership.
“Affordable homeownership is the missing piece in California’s housing strategy,” said Arakel. “Reinvesting in CalHome will ensure that families earning lower incomes aren’t permanently locked out of the housing market.”
CalHome dollars fund newly built and rehabilitated homes and are a far more cost-effective and longer-term investment in affordability and equity than the state-funded downpayment assistance programs, which were funded in the 2025-26 state budget and which often drive up home prices in an already constrained market.
“Affordable ownership housing is what allows families to build equity, stability, and independence, and CalHome is the ONLY state program designed to make that possible,” said Arakel. “Habitat for Humanity affiliates across California already have hundreds of units ready to go. The land is secured, the partnerships are in place, and the families are ready. What we need now is the state’s investment to bring these homes to life.”
The event featured remarks from members of the California State Legislature, Habitat for Humanity homeowners, and housing leaders who have witnessed firsthand the life-changing impact of CalHome investments.
Speakers included:
Assemblymember Dr. Corey Jackson (D-Moreno Valley)
Assemblymember Maggy Krell (D-Sacramento)
Senator Angelique Ashby (D-Sacramento)
Councilmember Cindy Silva, City of Walnut Creek
Karim Drissi - California Building Industry Association
Corey Smith – Housing Action Coalition
Alicia Sebastian – California Coalition for Rural Housing
Many more State Legislators and affordable housing partners stand in solidarity with Habitat for Humanity and the request for CalHome funding:
“As a proud resident of the Sierra Foothills and State Senator for District 4, I know firsthand how rural communities like ours are hit hardest by California’s housing crisis. Limited land, aging infrastructure, and skyrocketing costs relative to income leave families—especially veterans, seniors, and working parents—priced out of homeownership.
I’m deeply grateful to Habitat for Humanity for their unwavering dedication and leadership in this effort. I stand with them in urging Governor Newsom to restore $500 million in General Fund funding for 2026—the amount cut from the 2025 budget. This isn’t just about building homes; it’s about giving rural Californians a fair shot at stability, self-reliance, and staying in the communities they love.
I stand with Habitat for Humanity and local leaders in this fight. In Calaveras County, for instance, the average home price far exceeds what moderate earners can afford, making it critical to support programs like CalHome. Without it, we lose the very tools that make projects like Habitat’s Eureka Oaks in Angels Camp possible—affordable, resilient homes that keep families rooted and strengthen our rural economy.
I advocate for CalHome because it works: it empowers local nonprofits, leverages private investment, and delivers real results in places the market ignores. The 2025 cut was a setback, but I’m more determined than ever to restore this funding and ensure rural voices are heard in Sacramento.”
-Senator Marie Alvarado-Gil (R-Jackson), Senate District 4
“Housing fees, litigation, and an ever-growing web of regulations continue to drive the cost of construction up to the point that low- or middle-income projects simply do not get built. This disproportionately impacts first-time homebuyers, communities of Color, and the working class. By funding CalHome, California can support permanent housing solutions and increase access to affordable homeownership, which will help to turn the page on a long history of injustices that have denied too many Californians the opportunity to own a home.”
-Senator Tim Grayson (D-Concord), Senate District 9
“Homeownership is one of the most powerful tools for building stability and generational wealth — but for too many Californians, it’s out of reach. Programs like CalHome are critical to closing that gap, helping working families achieve the dream of homeownership and build stronger, more stable communities across our state.”
-Assemblymember Buffy Wicks (D-Oakland), Assembly District 14
"Homeownership is out of reach for far too many Californians, and we have a tool with a proven track record of changing that: CalHome. We need to fund CalHome so that it can continue building and preserving homes that more Californians can afford to own—and continue supporting the long-term stability of thousands of families."
-Senator Dave Cortese (D-Silicon Valley), Senate District 15
"CalHome plays a critical role in helping first-time, low-income homebuyers achieve the dream of homeownership in California. This program provides essential resources that make homeownership accessible to working families who might otherwise be priced out of the market. I've seen the impact of CalHome in our community at projects like Esperanza Place, where its helping families build stability and long-term financial security. Restoring funding for CalHome would allow us to continue supporting families who are working hard to achieve stability and invest in their futures."
-Assemblymember Rebecca Bauer-Kahan (D-Orinda), Assembly District 16
“Homeownership is growing further and further out of reach for so many families. CalHome is an incredible program that gives everyday people a chance at homeownership. I am proud to champion CalHome and to work toward a future where more families can access the keys to their dream home and a future they can be proud of.”
-Assemblymember Liz Ortega (D-Hayward), Assembly District 20
“Homeownership is foundational to family stability and community strength — it’s how working families build roots, security, and long-term opportunity. I strongly support dedicating $500 million for CalHome in the January budget so Habitat for Humanity and partners can continue helping first-time, lower-income buyers achieve the dream of homeownership. Programs like CalHome don’t just create homes, they strengthen neighborhoods, build equity for families, and move us closer to a California where everyone has the chance to thrive.”
- Assemblymember Rick Chavez Zbur (D-Hollywood), Assembly District 51
"Too many families in South Central have never had the opportunity to own a home because access has been denied for generations. Supporting programs like CalHome means our neighbors can finally put down roots, ensuring that our community can thrive, not just survive.”
-Assemblymember Sade Elhawary (D-South Los Angeles), Assembly District 57
“The road to affordable home ownership shouldn’t be difficult and CalHome is one of California’s most effective tools for affordable homeownership—especially for veterans, working families, and older adults. However, despite its proven success and demand exceeding supply by 200–300%—leaving thousands of shovel-ready homes unbuilt, including 500 Habitat for Humanity projects—the Governor eliminated its funding this year. I strongly support restoring CalHome funding so we can continue providing stable, affordable homeownership to the Californians who need it most”.
- Assemblywoman Leticia Castillo (D-Corona), Assembly District 58
“Cities like San Diego are stepping up to confront the housing crisis by building more homes. Any effort that helps accelerate housing production or expand access to homeownership moves us in the right direction - creating the kind of stability every family deserves in the city they call home. Habitat for Humanity has shown time and again what’s possible when mission-driven partners have the resources they need, and their work remains essential to helping more Californians achieve the security of owning a home.”
- Todd Gloria, Mayor, City of San Diego
“CalHome is the most important resource to create homeownership opportunities for working families in both urban and rural places in California, and it is the only homebuyer assistance program that ensures we are building the new homes we desperately need.”
– Tom Collishaw, President/CEO, Self-Help Enterprises
About Habitat for Humanity California
Habitat for Humanity California is the statewide support organization for the 30+ Habitat for Humanity affiliates serving communities across California. We work to increase access to safe, decent, and affordable housing through advocacy, resource development, and capacity-building efforts that strengthen the impact of our local affiliates. Together, we help families build and improve places to call home, empowering them to achieve stability, self-reliance, and a brighter future. Since our founding, Habitat affiliates in California have built, renovated, and repaired thousands of homes in partnership with hardworking families and generous volunteers and donors.
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