California Proposition 1, Housing Programs and Veterans' Loans Bond (2018)
California Proposition 1, the Housing Programs and Veterans' Loans Bond, is on the ballot in California as a legislatively referred bond act on November 6, 2018.
Proposition 1 would authorize $4 billion in general obligation bonds for housing-related programs, loans, grants, and projects and housing loans for veterans. The measure would distribute bond revenue as follows:
- $1 billion for the CalVet Home Loan Program, which offers loans to veterans for the purchase of homes, farms, units in cooperative developments, and mobile homes;
- $1.5 billion for the Multifamily Housing Program (MHP), which offers loans for the construction, rehabilitation, and preservation of rental housing for persons with incomes of 60 percent or below of the area median income;
- $150 million for the Transit-Oriented Development Implementation Fund, which offers loans and grants to local governments and developers for housing projects near transit stations;
- $300 million for the Regional Planning, Housing, and Infill Incentive Account, which offers grants for infill infrastructure that supports high-density affordable and mixed-income housing;
- $150 million for the Home Purchase Assistance Program, which offers loans to low-income and moderate-income homebuyers;
- $300 million for the Joe Serna, Jr. Farmworker Housing Grant Fund, which offers grants and loans for farmworker housing;
- $300 million for the Local Housing Trust Matching Grant Program, which offers matching grants to local housing trust funds for "pilot programs to demonstrate innovative, cost-saving approaches to creating or preserving affordable housing;"
- $300 million for the Self-Help Housing Fund, which provides forgivable loans for mortgage assistance, the development of multiple home ownership units, and manufactured homes.
Bonds on the ballot in California
In California, the state sells general obligation bonds to investors, who are in effect providing funds to the state that the state repays the investors with interest over a period of time. The state repays bondholders through revenue in the General Fund. The California Constitution requires that general obligation bond issues of $300,000 or more be referred to voters for approval or rejection. Between 1993 and 2018, voters of California cast ballots on 39 bond issues, approving 31 of them.
“Authorizes Bonds to Fund Specified Housing Assistance Programs. Legislative Statute.”
Text of the measure
The official ballot summary is as follows:
- Authorizes $4 billion of state general obligation bonds to fund existing housing programs.
- Includes $1.5 billion for Multifamily Housing Program for low-income residents, $1 billion for loans to help veterans purchase farms and homes, $450 million for infill and transit-oriented housing projects, $300 million for farmworker housing program, and $300 million for manufactured and mobile homes.
- Provides housing assistance for buyers, infrastructure financing, and matching grants to expand affordable housing stock.
- Appropriates General Fund revenues to pay off bonds for existing programs that have no revenues or insufficient revenues.