Where would the billions generated by Prop. 1 be spent? Here’s a look
California needs to build a lot more housing. But to do that, it’s going to need a lot of money.
Proposition 1 would enable the state to borrow $11.25 billion for housing, but where exactly would the money go if it passes?
As CalMatters’ Marisa Kendall explains, Prop. 1 would fund housing for veterans, homeless Californians, renters, homeowners, farmworkers, students and tribes.
Most of the money, $7.2 billion, would be earmarked for buying, building or renovating apartment buildings. Projects would have to reserve a certain number of units for low-income households.
Some housing would be set aside for homeless housing that includes additional services, known as “supportive housing.” This, in combination with other funding sources, would help support up to 40,000 rental units, according to the nonpartisan Legislative Analyst’s Office.
The office also estimates that Prop. 1 would cost the state up to $600 million a year for about 25 years to pay off the bond, including interest.
Proponents say that while it’s no silver bullet for the state’s housing crisis, it would help get some existing projects past the finish line.
Nearly 40,000 affordable units throughout California have been designed, permitted and partially funded — but are stalled because developers can’t get enough money to build them, according to a recent report. Projects for homeless and low-income residents also need large subsidies since their tenants don’t pay enough in rent to offset building costs.
Some Republican lawmakers opposed the bill that placed the proposal on the ballot. Sen. Tony Strickland of Huntington Beach said the measure borrows “money against the future,” and that it would be risky to push the state deeper into debt.
- Strickland, during a Senate floor vote in June: “There’s really no reason … other than to put hardworking families and the California taxpayers more in debt moving forward in perpetuity.”
