Berkeley, California, Measure O, Housing Bonds (November 2018)
| Measure O: Berkeley Housing Bonds |
|---|
|
| The basics |
| Election date: |
| November 6, 2018 |
| Status: |
 ApprovedMajority required: 66.67% |
| Topic: |
| Local bond issues |
| Related articles |
| Local bond issues on the ballot November 6, 2018 ballot measures in California Alameda County, California ballot measures Local housing on the ballot |
| See also |
| Berkeley, California |
A bond issue was on the ballot for Berkeley voters in Alameda County, California, on November 6, 2018. It was approved.
| A yes vote was a vote in favor of authorizing the city to issue up to $135 million in bonds at an estimated tax rate of $23 per $100,000 in assessed property value for 36 years to fund housing for "low-, very low-, low-, median-, and middle-income individuals and working families, including teachers, seniors, veterans, the homeless, students, people with disabilities, and other vulnerable populations," according to ballot language. |
| A no vote was a vote against authorizing the city to issue up to $135 million in bonds at an estimated tax rate of $23 per $100,000 in assessed property value for 36 years to fund housing. |
A two-thirds (66.67%) vote was required for the approval of this measure.
Election results
|
Berkeley, California, Measure O, Housing Bonds (November 2018) |
||||
|---|---|---|---|---|
| Result | Votes | Percentage | ||
|
|
42,384 | 77.48% | ||
| No | 12,322 | 22.52% | ||
Text of measure
Ballot question
The ballot question was as follows:[1]
| “ |
Shall the measure to issue $135 million in bonds to create and preserve affordable housing for low-income households, working families, and individuals including teachers, seniors, veterans, the homeless, and persons with disabilities; subject to citizen oversight and independent audits, be adopted? [2] |
” |
Impartial analysis
The following impartial analysis of the measure was prepared by the office of the Berkeley City Attorney:
| “ |
This measure was placed on the ballot by the City Council. This measure would authorize the issuance of $135 million of general obligation bonds to finance the acquisition and improvement of real property for the purpose of constructing, rehabilitating, or preserving affordable housing for low-, very low-, low-, median-, and middle-income individuals and working families, including teachers, seniors, veterans, the homeless, students, people with disabilities, and other vulnerable populations. The City could use the bond proceeds to leverage state and county funds allocated for affordable housing. Bond proceeds will be used to acquire and improve affordable housing either by the City directly or indirectly through third parties. The proceeds may be used to finance the acquisition or improvement of real property for the purpose of constructing, rehabilitating or preserving affordable housing, or to construct, rehabilitate or preserve affordable housing, including but not limited to supportive housing, nonprofit rental housing, and limited-equity housing cooperatives affiliated with community land trusts. Proceeds of the Bonds may be used to reimburse the City for amounts advanced from the general fund or other funds or accounts to acquire and improve real property when such purchases are made prior to the availability of Bond proceeds. This measure includes financial accountability requirements to ensure that the expenditure of Bond proceeds will be used only for the purpose of financing affordable housing projects and related costs. Financial accountability measures include an annual independent financial audit and oversight by an independent oversight committee to ensure that Bond proceeds are expended to finance affordable housing projects. In addition, the City Manager would be required to file an annual report with the City Council regarding the amount of funds collected and expended, as well as the status of the affordable housing projects. This measure provides that the maximum rate of interest to be paid on the bonds shall not exceed twelve percent (12%). Financial Implications The average annual cost over the 36-year period the bonds are projected to be outstanding would be approximately $23 for every $100,000 of assessed value, or $97 for the average assessed home value of $425,000. The highest tax rate that would be required to be levied is approximately $32 per $100,000 of assessed value, projected to apply beginning in 2025/2026. The best estimate of the total debt service, including the principal and interest, that would be required to be repaid if all the bonds are issued and sold is $270,000,000.[2] |
” |
| —Berkeley City Attorney[3] | ||
Full text
The full text of the measure is available here.
Support
Supporters
The following individuals signed the official argument in favor of the measure:[3]
- Jesse Arreguín, mayor, city of Berkeley
- Luis Amezcua, chair, Sierra Club Northern Alameda County Group
- Adena Ishii, president, League of Women Voters of Berkeley, Albany and Emeryville
- Amit Price Patel, board member, East Bay Housing Organizations
- Tom Bates, former Berkeley mayor, state assemblyman, and Alameda county supervisor
Arguments in favor
Official argument
The following official argument was submitted in favor of the measure:[3]
| “ |
Everyone deserves a safe, affordable place to call home. Vote YES on Measure O to create and preserve affordable housing and support a diverse and equitable Berkeley. With housing costs skyrocketing, many in Berkeley are struggling to find or keep their homes, and longtime residents are being displaced. Homelessness has increased by almost 20% from 2015 to 2017. Many people pay more than half of their income for housing, and cannot afford other basic necessities like groceries, medicine, childcare and transportation. The Bay Area is building less than half of the affordable homes we need. We need housing for working families, low-income students, and vulnerable populations including seniors, veterans, people with disabilities and the homeless. Berkeley requires private developers to create affordable housing, but that is not enough. Measure O will jump-start creation of permanently affordable housing. Measure O will:
Measure O is a responsible approach with strong accountability features. Every dollar raised MUST be spent to create and preserve affordable housing. Independent annual audits and an oversight committee will ensure funds are spent as approved by voters. Join our current and former Mayors, a united City Council, teachers, firefighters, nurses, seniors, and veterans to bring more affordable housing to Berkeley. Vote YES on Measure O! www.AffordableBerkeley.org[2] |
” |
Opposition
Opponents
The following individuals signed the official argument against the measure:[3]
- Dan B. Walden, executive director, Alameda County Taxpayers Association
- Marcus Crawley, concerned taxpayer
Arguments against
Official argument
The following official argument was submitted in opposition to the measure:[3]
| “ |
Bonds are BAD for taxpayers because half of the taxes are paid to bankers as finance fees. Bonds are a particularly bad solution for this long range affordable housing problem. A ‘Pay-as-You-Go’ tax will supply funds for years to come, while the best solutions can be found in the years to come. The best affordable housing solution today is not the same as 36 years ago and will not be the best solution 36 years from now. Proceed carefully and thoughtfully and use taxes wisely. This Bond measure is deceptive. This ballot measure proposes to impose a Tax without ever mentioning the word ‘TAX.’ Local governments use the gimmick of ‘Avoid the Word Tax’ to mislead the voters. People hate taxes. People will often vote against a tax measure just because it is a tax measure regardless of the proposed benefit. However, the word ‘Bond’ sounds good, so the City Council proposes a ‘Bond’, even though the Berkeley citizens receive twice the benefit from a ‘Pay-as-You-Go’ tax payment financing. The City Council must develop a sound affordable program and next, present it to the voters as a ‘Pay-as-You-Go’ Special Tax, dedicated to that specific purpose. Vote NO on this BOND. [2] |
” |
Path to the ballot
This measure was put on the ballot through a vote of the Berkeley City Council.
See also
External links
Footnotes
 |
State of California Sacramento (capital) |
|---|---|
| Elections |
What's on my ballot? | Elections in 2025 | How to vote | How to run for office | Ballot measures |
| Government |
Who represents me? | U.S. President | U.S. Congress | Federal courts | State executives | State legislature | State and local courts | Counties | Cities | School districts | Public policy |
