California Proposition 84, Housing and Homeless Bond Act (1988)
Proposition 84 authorized a bond issue of $300 million to provide funds for a housing program including:
- Emergency shelters and transitional housing for homeless families and individuals.
- New rental housing for families and individuals including rental housing which meets the special needs of the elderly, disabled, and farmworkers.
- Rehabilitation and preservation of older homes and rental housing.
- Home purchase assistance for first-time home buyers.
Text of measure
The ballot title was:
The official summary said:
- "This act provides for a bond issue of three hundred million dollars ($300,000,000) to provide funds for a housing program that includes: (1) emergency shelters and transitional housing for homeless families and individuals, (2) new rental housing for families and individuals including rental housing which meets the special needs of the elderly, disabled, and farmworkers, (3) rehabilitation and preservation of older homes and rental housing, and (4) home purchase assistance for first-time homebuyers."
- See also: Fiscal impact statement
The fiscal estimate provided by the California Legislative Analyst's Office said:
- Direct Cost of Paying Off the Bonds. The state would would receive loan repayments under the four loan programs discussed above. These repayments, however, would be used for additional loans, not for repayment of the general obligation bonds. As a result, the state's General Fund would be responsible for the bond principal and interest payments, which typically would be paid off over a period of about 20 years. If all of the authorized bonds were sold at an interest rate of 7.5 percent, the cost would be about $535 million to pay off both the principal ($300 million) and interest ($235 million). The average payment would be about $25 million each year.
- Borrowing Costs for Other Bonds. By increasing the amount that the state borrows, this measure may cause the state and local governments to pay more under other bond programs. These costs cannot be estimated.
- State Revenues. The people who buy these bonds are not required to pay state income tax on the interest they earn. Therefore, if California taxpayers buy these bonds instead of making taxable investments, the state would collect less in income taxes. This loss of revenue cannot be estimated.
Path to the ballot
The California State Legislature voted to put Proposition 84 on the ballot via Senate Bill 1693 (Statutes of 1988, Ch. 48).
|Votes in legislature to refer to ballot|
- PDF of the November 8, 1988 ballot proposition voter guide
- California Law Library, November 8, 1988 ballot propositions
- Hastings California I&R database