San Diego, California, Measure A, Housing Bond Issue (November 2020)

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San Diego Measure A
LocalBallotMeasures Final.png
Election date
November 3, 2020
Topic
City bonds and Local housing
Status
Defeatedd Defeated
Type
Referral
Origin
Lawmakers


San Diego Measure A was on the ballot as a referral in San Diego on November 3, 2020. It was defeated.

A “yes” vote supported authorizing the city to issue up to $900 million in bonds with bond revenue going to fund low-income, substance abuse, and mental health service housing requiring an estimated property tax levy of between $3 and $21 per $100,000 in assessed value.

A “no” vote opposed authorizing the city to issue up to $900 million in bonds with bond revenue going to fund low-income, substance abuse, and mental health service housing requiring an estimated property tax levy of between $3 and $21 per $100,000 in assessed value.


A two-thirds (66.67%) vote was required for the approval of Measure A.

Election results

San Diego Measure A

Result Votes Percentage
Yes 366,723 57.55%

Defeated No

270,554 42.45%
Results are officially certified.
Source



Text of measure

Ballot title

The ballot title for Measure A was as follows:[1]

To provide permanent and supportive housing for extremely low- to low-income individuals and families, including supportive mental health and substance abuse services, for populations including veterans, seniors, the disabled, youth and the homeless, shall the City of San Diego issue up to $900 million in general obligation bonds financed by property tax assessments estimated between approximately $3 and $21 per each $100,000 of assessed valuation for fiscal years 2022 through 2068? [2]

Ballot summary

The ballot summary for Measure A was as follows:[1]

This measure would increase property taxes on real property within the City of San Diego (City), which would be used to secure up to $900 million in bonds to be issued by the City, all for the purpose of providing permanent supportive and affordable housing for vulnerable populations.

Additional taxes to be levied are estimated to be approximately $3.14 per $100,000 of a property’s assessed valuation in fiscal year 2022, increasing to a maximum of $20.85 per $100,000 over the life of the bonds. The taxable or tax-exempt general obligation bonds supported by the new tax revenue would be issued in multiple series over seven years. Bond proceeds would be used to acquire or improve real property to provide permanent supportive and affordable housing for vulnerable populations, but may not be used to finance services or operations.

'Vulnerable populations' includes: (1) extremely low income, or (2) very-low income, or (3) low-income individuals or families, veterans, youth, seniors, the disabled, homeless individuals or chronically homeless individuals, those at serious risk of becoming homeless, and individuals suffering from mental health or substance abuse illnesses. “Affordable housing” may include: (1) facilities for which assistance and services, such as mental health treatment, healthcare, drug and alcohol treatment, education, and job training may be provided by the City, other public entities, non-profit entities and/or private entities and (2) infrastructure and landscaping, including utilities, sidewalks, and streets that are directly related to and necessary for the acquisition, construction, or improvement of the affordable housing.

If the measure is approved, the City intends to distribute new affordable housing across the City and to leverage bond proceeds by attracting private and public matching funds, including from state and federal sources.

If approved, bond proceeds will be administered by the San Diego Housing Commission, reporting to the City Council (Council). The Council will adopt an annual allocation plan to govern how proceeds are used and spent.

The Council will receive annual reports describing the amount of bond proceeds collected and spent, and the status of every project required or authorized to be funded with the proceeds.

The Council will establish an advisory Citizens’ Oversight Committee (the Committee) of individuals with relevant professional experience to advise on and monitor all proposed affordable housing projects funded with bond proceeds. The Committee will advise the Council to help ensure fiscal accountability. An auditor, selected by the Committee after a competitive process, will also review how proceeds are spent.

Certain property owners are subject to the City’s Inclusionary Affordable Housing Regulations or Housing Impact Fees on Commercial Development. If this measure is approved, the Council will introduce an ordinance providing that property owners subject to these laws will be entitled to a credit or reimbursement of such fees and costs, in an amount equal to the tax they would pay under this measure.[2]

Impartial analysis

The impartial analysis for Measure A prepared by the city attorney was as follows:[1]

California law allows the City of San Diego to issue general obligation bonds with the affirmative vote of two-thirds of those qualified electors voting on the matter in the election.

This ballot measure would allow the City to borrow up to $900 million by issuing and selling general obligation bonds. The City would use this money to acquire or improve real property in order to provide permanent supportive and affordable housing for vulnerable populations. The money could not be used to finance services or operations.

If the measure is approved, the bond proceeds could be leveraged by attracting private and public matching funds, including from state and federal sources.

'Vulnerable populations' includes extremely low income, very-low income or low-income:

  • individuals or families,
  • veterans,
  • youth,
  • seniors,
  • disabled people,
  • homeless individuals, chronically homeless individuals, or those at serious risk of becoming homeless, and
  • individuals suffering from mental health or substance abuse illnesses.

'Affordable housing' may include:

  • facilities for which assistance and services, such as mental health treatment, healthcare, drug and alcohol treatment, education, and job training may be provided by the City, other public entities, non-profit entities and/or private entities, and
  • infrastructure and landscaping, including utilities, sidewalks, and streets that are directly related to and necessary for the acquisition, construction, or improvement of the affordable housing.

Affordable housing acquired or improved using bond funds could be sold or rented at below market rates.

If approved, this measure would require the City to prepare a public report each year describing the amount of the funds collected and spent, and the status of any projects paid for with bond funds. The Council would establish a Citizens’ Oversight Committee to review each annual report and would require an independent auditor to review the City’s expenditure of bond funds.

If approved, the measure would allow a property tax increase to pay debt service on the bonds. The City estimates that the new property taxes to be paid by property owners during the first fiscal year after the sale of the first series of bonds will be approximately $3.14 per $100,000 of assessed value of taxable real property. The City estimates that the tax rate over the life of the bonds would range from approximately $3.14 per $100,000 of assessed value to $20.85 per $100,000 of assessed value of taxable real property.

The measure requires approval by two-thirds of the qualified voters of the City of San Diego who vote on the measure in order for it to be approved.

A 'yes' vote would authorize the issuance and sale of up to $900,000,000 of general obligation bonds secured by new taxes on real property located within the City to provide affordable housing.

A 'no' vote would not authorize the issuance and sale of the bonds or the related tax.[2]

Full text

The full text can be found here.

Support

Yes on A campaign logo

Yes on A led the campaign in support of Measure A.[3]

Supporters

  • SEIU Local 221[4]
  • San Diego & Imperial Counties Labor Council[4]
  • San Diego County Building And Construction Trades Council[4]
  • Downtown San Diego Partnership[4]
  • League Of Women Voters Of San Diego[4]
  • Planned Parenthood Action Fund Of The Pacific Southwest[4]
  • San Diego County Taxpayers Association[4]
  • San Diego County Democratic Party[4]

Official arguments

The official arguments in support of Measure A were authored by Tamera Kohler, chief executive officer of Regional Task force on the Homeless; Chris Ward, San Diego City Councilmember; Elizabeth Cuestas, president and chief executive officer, Casa Familiar; Dr. Jim Dunford, former director of Emergency Medical Services; and Deacon Jim Vargas, president and chief executive officer of Father Joe's Villages:[1]

Over 5,000 individuals in the city of San Diego are homeless. There are homeless encampments in nearly every neighborhood in our city. This growing crisis affects every neighborhood – impacting public health and safety and hurting local businesses. Everyone pays a daily price for our failure to address this human tragedy. San Diego has tried various strategies to address this issue. But homelessness persists, and at times it seems as if there will never be a real solution.

Measure A is different. This local investment not only allows us to address homelessness, but also provides affordable homes so hard-working San Diego families can afford to stay in our city. It will also generate the local resources necessary to receive millions in federal and state matching funds that we currently leave on the table.

Your YES vote on Measure A will:

  • Create homes for local homeless children and their families living in shelters, on the streets or in danger of becoming homeless.
  • Provide homes for San Diegans experiencing chronic homelessness, where they can get supportive mental health services, drug and alcohol treatment, job training and placements.
  • Ensure families can afford housing and still have enough money for basics like food, transportation and childcare.
  • Create safe, clean and healthy homes for low-income seniors, veterans and those with disabilities.
  • Provide affordable homes near jobs for low-income families.
  • In the time of COVID, provide homes where those most vulnerable to infection can get the care they need for themselves and to protect others.
  • Create thousands of good-paying construction jobs to help our region rebound from the COVID-created economic crisis.

With Measure A, we can all do our part to help solve homelessness and keep San Diego affordable for all.

Vote YES on Measure A![2]

Opposition

No on Measure A led the campaign in opposition to Proposition A.[5]

Opponents

  • Republican Party Of San Diego County[4]

Official arguments

The official arguments in opposition to Measure A were authored by Carl DeMaio, chairman of Reform California; Scott Sherman, chairman of San Diego Audit Committee; Chris Cate, chairman of the San Diego Economic Development and Intergovernmental Relations Committee; and Richard Rider, chairman of San Diego Tax Fighters:[1]

No on Measure A: It’s a Massive Property Tax Increase In just the first five years under Measure A, the average homeowner will see their property tax increased by $500 or more! Taxpayers will be on the hook to pay for this property tax increase for more than 40 years! San Diego already has the highest property tax rate in the county and too many working families are struggling with the high cost-of-living already. In the midst of a pandemic, San Diegans can’t afford a massive property tax increase.

No on Measure A: It Lines the Pockets of Special Interests Measure A fails to protect taxpayers by refusing to ban controversial Project Labor Agreements. These PLAs are sweetheart deals at taxpayer’s expense that discriminate against non-union firms which are predominantly small, veteran-owned and minority-owned businesses.

No on Measure A: More Debt and a Waste of Taxpayer Money Under Measure A, taxpayers will authorize city politicians to take on $900 million in additional debt at a cost of over $2 billion to city taxpayers!

Recent studies have shown the kinds of projects that would be funded by Measure A have been riddled with wasteful spending and financial mismanagement. A recent audit of similar projects in Los Angeles found that the well-connected developer’s “soft costs,” (e.g. consultants, fees, and financing) was unusually high and accounted for 35%-40% of the cost of each project funded by taxpayers.

For more information go to CleanUpCityHall.com

Join us in Voting No on Measure A[2]

Path to the ballot

See also: Laws governing local ballot measures in California

This measure was put on the ballot through a vote of the governing body of San Diego.

See also

External links

Support

Opposition

Footnotes