What this proposition does: This proposition authorizes the state to borrow $4 billion through general obligation bonds that would be earmarked for certain housing projects, including programs for low-income families, farmers and veterans. The bulk of the loan, $1 billion, is earmarked for a program that allows veterans to buy homes, farms and mobile homes. The state would repay the bonds at an estimated cost of $170 million over the course of 35 years, which shakes out to a repayment amount of $6 billion. What supporters say: Proponents claim the money is desperately needed to provide relief from the ongoing housing crisis in California, with a special emphasis on veterans, seniors, low-income families and those with disabilities. Proponents say Proposition 1 is the sole voter initiative that would help ease homelessness and provide opportunities to struggling individuals families who are burdened by the housing crisis without raising state taxes. What opponents say: Opponents claim property owners could be on the hook for paying off the bonds with interest and that property taxes could potentially increase as a result of the state getting deeper into debt, though opponents also acknowledge the bonds could be repaid by those who receive benefits under the programs. Opponents say voters should carefully scrutinize whether the proposed uses of the money under the initiative are justified given the expense when other things might be wanted or needed, and ultimate let the housing market figure things out. What a YES vote means: A YES vote means a voter wants to authorize the state to take out a $4 billion loan through general obligation bonds to fund affordable housing initiatives. What a NO vote means: A NO vote means a voter does not want the state to take out a $4 billion loan through general obligation bonds to fund affordable housing initiatives. Official ballot title: “Authorizes Bonds to Fund Specific Housing Assistance Programs. Legislative Statute.”]]>
Election 2018: Proposition 1 – Affordable Housing
Proposition 1 authorizes the state to borrow $4 billion through general obligation bonds that would be earmarked for certain housing projects.