SUPPORT
Proposition 46 - Housing and Emergency Shelter Trust Fund Act of 2002
Legislative Bond Act

This Act creates a trust fund and authorizes $2.1 billion of general obligation bonds for the fund to provide clean and safe housing for homeless families, battered women and their children, and for low-income senior citizens, farmworkers, teachers, and students; to provide homeownership assistance; to provide repairs and accessibility improvements to existing emergency shelters and housing for handicapped individuals; to preserve affordable housing; to provide housing with social services for veterans and the mentally ill; and to assist cities and counties with specified housing programs.

The funds allocated include:

• $1.11 billion for low-interest construction loans to help cities, counties and nonprofits develop multifamily housing for low-income workers; for programs to protect affordable housing from conversion to market-rate rents; for space for housing-related social services; to assist cities and counties that establish local housing trust funds; for low-income student housing; and for repairs and improvements to housing for the handicapped.
  
  
• $405 million for homeownership programs, including downpayment assistance to qualified families; the existing CalHome program; a new Building Equity and Growth in Neighborhoods program; self-help homebuilding construction management; assistance to schools to compensate for loss of developer fees for affordable housing; and homeownership assistance for teachers and other school personnel.
  
  
• $200 million for farmworker housing and health services and migrant worker housing.
  
  
• $385 million for homeless shelters; to encourage building code enforcement; and for housing programs that lessen the jobs/housing imbalance.

It is expected that bond funds would provide annual subsidies for 25,000 multifamily units and 10,000 farmworker households. They would also provide downpayment assistance to about 60,000 homebuyers and space for 30,000 homeless shelter beds. These numbers would be increased by assistance to local housing trust funds that add their monies to serve similar purposes.

The bonds would be issued over a period of time. According to the Legislative Analyst, the cost to the state if bonds were sold at the current interest rate of 6.25 percent would be about $4.7 billion to pay principal of $2.1 billion and interest of $2.6 billion. Average payment would be about $157 million per year. Approximately $100 million of the bond funds could be used to pay administrative costs of state agencies administering the housing programs. (See "Looking at Bond Measures" in this Action Guide.)

Although about 150,000 houses and apartments are built in California each year, that is far below the estimated need. More than 360,000 Californians are homeless today. It is projected that the state will experience strong growth in both jobs and people over the next two decades, and that the supply/demand imbalance will worsen. While most housing is built with private funds, state subsidies or direct financial assistance are normally required to develop affordable housing. In 1988 and 1990 voters approved $600 million of general obligation bonds to finance state housing programs. These funds have been spent. The state General Fund normally includes some amounts for housing, varying from less than $20 million annually to the "good housing year" two years ago when more than $350 million of General Fund revenues were allocated to housing programs. The current budget has almost completely eliminated General Fund spending for housing.

The Housing and Emergency Trust Fund Act bond measure was placed on the ballot by the Legislature and signed by the Governor.

IMPORTANT POINTS

• Proposition 46 will fund programs to meet the needs of people throughout the state, including low- and moderate-income families, women, children, seniors, workers, the homeless, students, teachers, other school personnel, farmworkers, homebuyers, and the disabled.
  
  
• Proposition 46 is a response to our current housing crisis that is leaving a growing number of Californians without safe, decent housing. Without this action the problem will only grow more critical with predicted population increases.
  
  
• Proposition 46 replaces cuts to General Fund spending for housing programs made because of this year's budget problems. Tight budgets are likely to continue for some time, making it unlikely General Fund allocations would be resumed.
  
  
• Proposition 46 would help build 136,000 homes to benefit first-time homebuyers.
  
  
• The programs in Proposition 46 are available to all cities and counties in the state to meet their own most pressing needs.
  
  
• The funds could improve the jobs/housing balance, allowing some workers to live within reasonable distances from where they work.
  
  
• There has not been a state housing bond since 1988 and 1990, twelve years ago, and funds from those bond measures have been long since spent.
  
  
• Proposition 46 will create 276,000 jobs and act as a strong economic stimulus.
  
  
• Affordable housing developments that could otherwise be constructed are delayed or denied for lack of available financing. Proposition 46 would provide $800 million in low-interest loans to encourage multifamily housing construction.

The rebuttal to opponents' arguments was signed by Tom Porter, State Director, California AARP; Pete Major, Executive Director, Habitat for Humanity, Orange County; Dan Terry, President, California Professional Firefighters.

Other supporters mentioned in the ballot arguments include AARP, California State Sheriffs Association, California Chamber of Commerce, Statewide California Coalition for Battered Women, California Nurses Association, California Teachers Association, California Professional Firefighters, and Congress of California Seniors.

Anne Henderson, LWVC Legislative Director, annehenderson@att.net

Sally Probst, LWVC Housing Consultant, sallyprobst@mindspring.com

Yes on 46, 926 J Street, Suite 1400, Sacramento, CA 95814. Phone: 916-447-0531, www.prop46yes.org

Note: Please adapt this letter to your own community and check your local paper's word limit for published letters.

Editor:

On November 5, California voters can help solve the widening gap between the supply of safe, decent, affordable housing and the demands of our growing population.

Over 360,000 Californians are homeless - many are children, battered women, low-income seniors, or laid-off workers with few resources. Only 29% of Californians can afford a median priced home. One third of all Californians spend more than half their income for housing.

Proposition 46 will provide $2.1 billion in desperately needed bond funds for projects dedicated to address this growing housing crisis.

Projects funded include $910 million for new rental housing for low-income seniors, disabled persons and families with children; 136,000 new homes for qualified first-time homebuyers; new emergency shelters for battered women and their families and numerous other housing programs for seniors, veterans, families, farm workers, the homeless and disabled.

Proposition 46 makes good economic sense. Interest rates are the lowest in thirty years and the State Treasurer has stated that bonds issued this year will be well received by financial markets.

In addition, Proposition 46 will be accompanied by at least $13 million in private investment and federal funds, provide more than 276,000 jobs and spur and estimated $25 billion in spending for home-related goods and services.

Join AARP, Habitat for Humanity, California Professional Firefighters, Congress of California Seniors, California Chamber of Commerce, Statewide California Coalition for Battered Women, California Nurses Association, California Teachers Association, and the League of Women Voters of California in support for Proposition 46.

Sincerely,