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California Proposition 1C, Housing Bond Measure (2006)
| California Proposition 1C | |
|---|---|
 | |
| Election date November 7, 2006 | |
| Topic Bond issues and Housing | |
Status Approved | |
| Type Bond issue | Origin State Legislature |
California Proposition 1C was on the ballot as a bond issue in California on November 7, 2006. It was approved.
A "yes" vote supported authorizing the state to issue $2.85 million in bonds for housing and development programs. |
A "no" vote opposed authorizing the state to issue $2.85 million in bonds for housing and development programs. |
Election results
|
California Proposition 1C |
||||
|---|---|---|---|---|
| Result | Votes | Percentage | ||
|
|
4,814,850 | 57.76% | ||
| No | 3,521,055 | 42.24% | ||
Measure design
Proposition 1C authorized the state to issue $2.85 million in bonds for housing and development programs. Bond revenues were set to be expended as follows:[1]
- $1.35 billion for three new development programs;
- 625 million for programs to encourage homeownership;
- $590 million for programs to construct or renovate rental properties and provide developers with a 3% interest rate on construction loans if the developer reserves a portion of units for low-income households for 55 years;
- $285 million for loans and grants to developers of homeless shelters and housing for farmworkers, and pilot projects that are "aimed at reducing the costs of affordable housing."
Text of measure
Ballot title
The ballot title for Proposition 1C was as follows:
| “ | Housing and Emergency Shelter Trust Fund Act of 2006. | ” |
Ballot summary
The ballot summary for this measure was:
| “ | Funds may be used for the purpose of providing shelters for battered women and their children, clean and safe housing for low-income senior citizens; homeownership assistance for the disabled, military veterans, and working families; and repairs and accessibility improvements to apartment for families and disabled citizens. The state shall issue bonds totaling two billion eight hundred fi fty million dollars ($2,850,000,000) paid from existing state funds at an average annual cost of two hundred and four million dollars ($204,000,000) per year over the 30 year life of the bonds. Requires reporting and publication of annual independent audited reports showing use of funds, and limits administration and overhead costs. Appropriates money from the General Fund to pay off bonds. | ” |
Full Text
The full text of this measure is available here.
Fiscal impact
- See also: Fiscal impact statement
The fiscal estimate provided by the California Legislative Analyst's Office said:[1]
- "State cost of about $6.1 billion over 30 years to pay off both the principal ($2.85 billion) and interest costs ($3.3 billion) on the bonds. Payments of about $204 million per year."
Support
Supporters
- Cheryl Keenan, Executive Director San Diego Habitat for Humanity[1]
- Marivic Mabanag, Executive Director California Partnership to End Domestic Violence[1]
- Tom Porter, State Director AARP[1]
Arguments
Official arguments
The following supporting arguments were presented in the official voter guide for Proposition 1C:[1]
| “ | YES on Proposition 1C will provide emergency shelters for
battered women, affordable homes for seniors and low-income families, and shelters with social services for homeless families with kids. That is why Habitat for Humanity, AARP, and California Partnership to End Domestic Violence strongly urge you to vote YES on Proposition 1C. Importantly, this measure will be funded out of existing state resources without raising taxes. Many of our communities face severe problems of housing affordability, homelessness, and domestic violence. Over 360,000 Californians are homeless every night. Last year, 5,108 women and children were turned away from domestic violence shelters because they were full. Housing affordability for working families in California is at historic lows. Safe shelter is fundamental to a decent life. YES on Proposition 1C will:
Additionally, Proposition 1C helps working families afford homes and provides accessibility improvements to apartments for disabled Californians. Proposition 1C also creates 87,000 jobs and helps improve the state’s economy. Allows Seniors to Live Independently: This measure allows seniors to live at home without the fear of being institutionalized in a nursing home. Helps Battered Women: “Most cities in California don’t have adequate shelters for women and children who have been beaten and abused. Proposition 1C begins to fi x this bad situation.” —California State Sheriffs Association Independent Audits and Accountability: “This measure requires independent audits, limits administrative expenses, and contains strict accountability provisions to ensure the funds are used as promised.” —California Chamber of Commerce Helps Foster Youth: “Tragically, 65% of foster youth are homeless on the day they leave foster care. Proposition 1C will help them fi nd stable homes.” —Homes 4 California Critical Need for Housing and Emergency Shelters: “Proposition 1C provides shelter for those who need help the most—battered women, homeless families with children, and disabled seniors.” —Habitat for Humanity, Sacramento Yes on 1C: Part of a Long-Term Plan to Rebuild California Proposition 1C is part of the Rebuild California Plan, which uses the taxes we’re already paying to build the roads, housing, schools, and water systems we need to sustain our economy and our quality of life for the long term. Please support the longterm plan to rebuild California by voting Yes on 1A, 1B, 1C, 1D, and 1E. To learn more about how this plan will benefit you and your community, visit www.ReadForYourself.org. Proposition 1C provides shelters for our most vulnerable Californians: the elderly, disabled, homeless families, battered women and children. Please vote Yes on 1C for emergency shelter and housing relief without raising taxes.[2] |
” |
Opposition
Opponents
- California State Assemblyman Chuck DeVore (R)[1]
Arguments
Official arguments
The following opposing arguments were presented in the official voter guide for Proposition 1C:[1]
| “ | Proposition 1C would add almost $3 billion in new
government debt and expand bureaucracy, but it won’t make housing affordable in California. Sacramento politicians placed Proposition 1C on the ballot at 3 in the morning. Why did they vote in the middle of the night with little debate and no oversight? What were they trying to hide? Proposition 1C won’t make housing more affordable for the average Californian. What it will do is grow government and force the average California family of four to pay over $600 in debt and interest while INCREASING PRESSURE TO RAISE TAXES. What will $2.85 billion of new government borrowing buy? In a state of 37 million people with over 12.2 million housing units, not even a drop in the bucket. Instead, Proposition 1C will empower bureaucrats to dispense cash to a select few who meet the government rules and are lucky enough to be chosen to get the money borrowed in your name. It’s true that only 14 percent of families in California can now afford the median-priced home. But, government itself is to blame for this problem. More than half the cost of a home or apartment rent in California is due to high taxes, overregulation, environmental lawsuits, fees, and government interference in the free market—all of which doubles the high cost of housing. So, what do the politicians propose? Their solution: another government program that allows affordable housing only for the lucky few who can get their hands on your money. The true way to make housing affordable again in California is to allow builders to build homes and condominiums and apartments and then allow people to pay to live in them—without the government telling everyone what to do and how to do it. Instead, the text of Proposition 1C reads like the failed government housing programs of the past, with references to, “target population,” “Housing Finance Committee,” “supportive housing,” “operating subsidies,” and “pilot programs.” Along with millions of dollars for bureaucracy and even $400 million for parks that house no one at all! One last reason to vote “no” on Proposition 1C: we can’t afford more debt. For every dollar we borrow, we and our children will have to repay that dollar plus a dollar in interest costs. That means the average California family will have to pay more than $600 in additional taxes over the life of this bond, half of which will be to pay the roughly $3 billion in interest fees alone. Vote “no” on Proposition 1C. We can’t afford it, and it won’t make housing more affordable in California. For more information, please visit Assemblyman Chuck DeVore’s website at: www.NoProp1C.com or email him at NoProp1C@aol.com.[2] |
” |
Path to the ballot
A simple majority vote was needed in each chamber of the California State Legislature to refer the measure to the ballot for voter consideration.
The California State Legislature voted to put Proposition 1C on the ballot via Senate Bill 1689 of the 2005–2006 Regular Session (Chapter 27, Statutes of 2006).
| Votes in legislature to refer to ballot | ||
|---|---|---|
| Chamber | Ayes | Noes |
| Assembly | 54 | 16 |
| Senate | 27 | 11 |
See also
External links
- Official 2006 General Election Voter guide
- Official Proposition 1C voter guide
- PDF of the mailed November 7, 2006 voter guide for Proposition 1C
- Proposition 1C on the Smart Voter Guide (dead link)
- Analysis of Proposition 1C (dead link) from the Institute of Governmental Studies
- Guide to Proposition 1C from the California Voter Foundation
- Summary of donors to and against 1C from Cal-Access
- Donors for and against Proposition 1C from Follow The Money
- Official declaration of the November 7, 2006 ballot proposition election results
Footnotes
