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Housing and Emergency Shelter Trust Fund Act of 2006
Legislative Bond Act.

THE QUESTION

Should the state sell $2.9 billion in general obligation bonds to fund housing for lower-income residents and to assist development in urban areas near public transportation?

THE SITUATION

Most houses and apartments built in California are funded with private dollars. Some units receive subsidies from various government entities. These homes are sold or rented to low income Californians. The state also offers home buyers direct financial assistance. Cities and counties, however, incur the cost of infrastructure-related services to new housing, such as water, sewer, roads, and parks.

In 2002, voters approved Proposition 46, which provided $2.1 billion in general obligation bonds to fund state housing programs. The Legislative Analyst estimates $350 million will remain unspent as of November 2006.

California has 21 of the 25 least affordable metropolitan areas in the country, and only 14 percent of families in California can afford the $561,000 median home price. Traffic and congestion are growing as working families seek affordable housing outside of urban areas in which they work. California has nine out of ten of the counties nationwide that are least affordable for renters.

THE PROPOSAL

Proposition 1C would allocate funds to support a variety of housing and development programs as follows:

• $1.5 billion for existing programs for home ownership and multifamily housing
  • Homeowner assistance programs—$625 million
  • Multifamily housing—$590 million
  • Farmworker housing—$135 million
  • Pilot programs to develop housing at lower costs—$100 million
  • Homeless shelters—$50 million

• $1.35 billion for development projects in urban areas and near public transportation that would include funding of infrastructure, parks, traffic mitigation, and preservation of open space throughout the state. This is a new program with details to be established by the Legislature.

FISCAL EFFECT

The Legislative Analyst estimates the 30-year cost to be $6.1 billion.

WHAT A Yes Or No Vote Means

A YES vote means the state could sell $2.9 billion in general obligation bonds to support a variety of housing and urban development programs.

A NO vote means the state could not sell $2.9 billion in general obligation bonds for these purposes.

SUPPORTERS SAY

• It helps working families afford homes and provides accessibility improvements to apartments for disabled Californians.
• It provides shelters for our most vulnerable: the elderly, disabled, homeless families, foster youth, battered women and children.

OPPONENTS SAY

• In a state of 37 million people with more than 12.1 million housing units, what $2.85 billion can buy will be a drop in the bucket.
• For every dollar borrowed, we and our children will repay that dollar plus a dollar in interest.

FOR MORE INFORMATION

PRO 916-448-1401, www.ReadForYourself.org

CON 916-991-9300, www.NoProp1C.com