CALIFORNIA, USA — California makes it difficult for local governments to borrow money. Not only do most city and county bonds require voter approval, they need the support of at least two-thirds of those voting to pass.
Proposition 5 would amend the California constitution by lowering the required threshold to 55% for any borrowing to fund affordable housing construction, down payment assistance programs and a host of “public infrastructure” projects, including those for water management, local hospitals and police stations, broadband networks and parks.
If it passes, the new cut-off would apply not just to future bonds, but any that are on the ballot this November.
Why is it on the ballot?
Assemblymember Cecilia Aguiar-Curry, a Democrat from Winters, has been trying and failing to get some version of this on the ballot since 2017. After a helpful promotion to Assembly majority leader, she finally got her way this year.
The Legislature voted to put Prop. 5 on the ballot last fall. But after a bit of political wrangling this spring, lawmakers passed a second measure to make a few last-minute changes. Though an earlier version applied to certain tax hikes, the proposition now only covers bonds. It also now includes a ban on local governments using the money to buy up existing single-family homes to convert them into affordable units. That change was required to persuade the powerful California Association of Realtors not to oppose the measure (though it gave money to the opposition campaign before then).
For a deeper dive on this proposition, click HERE.
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