Measure for Measure: Proposition 1

Voting is an essential part of civic engagement, but it can be confusing, especially in local elections. There are tons of measures and candidates to consider in the upcoming election on November 6th. That’s why we’re doing this round-up of the statewide measures, to provide some insight into the 2018 ballot.

Check out our round-up page for more articles on the other measures.

What is Proposition 1?

Proposition 1 is a bond act proposed by California State Legislature to authorize $4 billion in bonds for housing-related programs and housing loans for veterans. It would be split up between a host of programs, mainly focused on providing housing support to veterans and low-income residents. See here for a full breakdown of the distribution.

A general authorization bond is a way for California (and other states) to take out loans from investors and repay them through revenue in the General Fund. If approved, this measure would go into effect immediately.

Why does it matter?

As you know, California is in the middle of a massive housing crisis, with “1.54 million of California’s lowest income households without access to affordable housing,” according to the measure writers. This measure would replenish sorely-needed capital for affordable housing developers and mitigate the hit we took with the loss of redevelopment funds in 2011, which provided $1b per year in funding for affordable housing.

Proposition 1 would directly restore state funds including local housing trust funds, the CalVet Home Loan program, the Multi-Family Housing Program, and CalHFA Home Purchase Assistance. It would enable more affordable housing to be built as well as preserve and maintain existing affordable housing options.

The authors of the measure also argue the investment in housing will create jobs and returns in local income and taxes.

It’s important to note that this is one-time funding — when it’s gone, it’s gone and would not be replenished.

What are the arguments for Prop 1? Who’s funding the proposition?

Prop 1 is widely supported by a diverse set of constituencies and organizations across California. The Affordable Housing Now coalition, comprised of affordable housing advocates, business leaders, labor unions, veterans, and environmental groups, is leading the campaign in support of the proposition.

They argue that this measure will allow working-class Californians to live in the communities where they work, provide supportive housing for veterans, low-income people, people experiencing homelessness, victims of domestic violence, and individuals with disabilities, and create 137,000 jobs and $23.4 billion into California’s economy. Here’s a piece from the San Diego Tribune that advocates for the measure quite well.

This proposition was put on the ballot by the state legislature. It’s right in line with the state’s adoption of the Housing First model (which they did in 2016 with SB 1380).

Endorsers of the proposition include the California Housing Consortium, Housing California, Silicon Valley Leadership Group, and State Building and Construction Trades Council of California. See the full list of endorsements here.

Major funding comes from Chan Zuckerberg Advocacy, Members’ Voice of the State Building and Construction Trades Council of California, and Essex Property Trust. See more funding details here.

What are the arguments against Prop 1? Who’s funding the opposition?

There really isn’t substantive opposition to Prop 1. The main opponents are those who are reticent towards racking up any statewide debt, regardless of the cause, or have NIMBY-esque concerns about new affordable housing construction.

Some argue that this measure won’t solve our housing crisis and thus isn’t the “right” solution. In the official voter information guide from California’s Secretary of State, Gary Wesley argues that “the housing shortage stemming from the influx of millions to California requires far bigger solutions.” Others cite the high cost of building as a reason to vote no on the bill.

What is TechEquity’s position on Prop 1?

We think this a no-brainer. Despite the fact that this is not a sustainable, replenishing source of revenue, it will assign a hefty amount of capital towards more affordable housing, which aligns with our housing platform perfectly. We say vote yes on Prop 1!

Check our round-up page for more measure articles as we publish them.

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