Proposition 1Bond (state borrowing)
Housing and veterans bonds
Explain it like I'm 5
California would borrow money to build affordable homes and help veterans buy homes. It is like taking a large loan now and paying it back over many years.
Yes vote
California could issue $11.25 billion in bonds for affordable housing, CalVet home loans, and youth housing.
No vote
California could not issue these bonds for those programs.
The question to ask yourself
Is long-term borrowing for affordable housing worth the effect on future state budgets?
The case for
- Funds affordable homes for renters, veterans, farmworkers, students, and young people.
- Uses long-term borrowing for buildings that can serve residents for many years.
- The veterans loan portion is repaid by participating borrowers.
Backed by: California Federation of Teachers, US Vets, Habitat for Humanity California, California Housing Consortium, League of California Cities, Governor Gavin Newsom
The case against
- Adds long-term General Fund debt and interest costs.
- Bonds do not by themselves fix zoning, land, or construction-cost barriers.
- Housing need is much larger than this one funding measure.
Opposed by: Howard Jarvis Taxpayers Association, Reform California
- Money
- The General Fund cost is estimated at $500 million to $600 million annually for about 25 years, while veterans' loan payments repay that portion.
- Don't be misled
- Saying taxpayers repay the entire $11.25 billion is misleading because the $1.25 billion veterans portion is designed to be repaid by borrowers.