California Proposition 1 seeks to authorize state bonds for housing affordability programs

As California faces a housing affordability crisis, voters will weigh Proposition 1, which aims to alleviate the issue through bond funding.

The proposition is a legislative measure that would allow the state to sell $11.25 billion in bonds to fund affordable housing projects. 

Written by state lawmakers, Prop. 1 is aimed at helping provide up to 40,000 multifamily rental units and assisting another 40,000 households in buying a home, specifically targeting veterans, seniors, teachers and essential workers.

Chapman University researchers recently ranked the 10 least affordable housing markets in the world, and found four are in California: San Jose, Los Angeles, San Francisco, and San Diego.

Of the $11.25 billion in bonds, $1.25 billion would go towards veteran housing, while the rest would fund rental homes, homeownership programs, farmworker housing, affordable student housing, tribal housing and more.

Supporters include Bay Area tech leaders, veterans' groups, the California Federation of Teachers, and Habitat for Humanity. According to CalMatters, Gov. Gavin Newsom, the California Democratic Party, the California Apartment Association and AFL-CIO California also endorse the measure.

Opponents argue that because the bond is taxpayer-funded and building costs in California are so high, the $11 billion it provides would be only a "drop in the bucket" relative to the scale of the overall housing problem. 

Bonds are a way that governments borrow money and pay it back with interest. The California Constitution requires that most new bonds be approved by voters.

The state is currently repaying about $80 billion in bonds from the state General Fund, according to the Legislative Analyst's Office.