Prop. 1C Guide

Update November 8, 2006

Proposition 1C was passed by 57.4% of voters.

Proposition 1C in Plain English

This bond measure would provide $2.85 billion to fund 13 new and existing housing and development programs. These programs include development projects like parks and sewer systems in urban areas, homeownership programs for low- and moderate income homebuyers, and multi-family housing developments. The cost to the state is estimated to be $6.1 billion over 30 years.

Official Title and Summary

Housing and Emergency Shelter Trust Fund Act of 2006.

• 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 apartments for families and disabled citizens.
• The state shall issue bonds totaling two billion eight hundred fifty 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.

Summary of Legislative Analyst’s Estimate of Net State and Local Government Fiscal Impact:

• 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.

Analysis

• Official Legislative Analysis, California Legislative Analyst’s Office (PDF)
• In Depth Nonpartisan Analysis, League of Women Voters Ca.

Articles

• Housing bond would boost programs for the poor. Prop. 1C would also fund anti-sprawl projects in cities. San Francisco Chronicle
• On Nov. 7, Californians can choose to build for the future. San Jose Mercury News
• Editorial: Bonds for the future, Yes on Props. 1B, 1C, 1D, 1E and 84. Sacramento Bee
• Another view: Let housing operate in a free market. Sacramento Bee
• Props. 1B, 1C, 1D, 1E and 84: Public works bonds: No. The infrastructure bonds will dangerously run up state debt for too little in return. Orange County Register
• The $46-Billion Questions Await State’s Voters, Ballot measures would release a torrent of spending on California’s infrastructure but test the public’s stomach for more debt and taxes. Los Angeles Times