SACRAMENTO, Calif — On Tuesday, Nov. 5, 2024, Californians will vote on 10 statewide ballot propositions. Each would be a new law that needs voter approval to take effect.
One of the state ballot measures, Proposition 5, will decide whether to lower the vote threshold local governments currently need to pass bonds for affordable housing and public infrastructure projects.
What is Prop 5?
Local governments in California often struggle to borrow state and federal money. With Prop 5, the voting threshold required to approve infrastructure projects and affordable housing construction would drop from the current two-thirds majority to a 55% majority.
Lawmakers have tried to approve variations of this since 2017 with no success. It was also on the ballot last fall, but a few changes were made in the spring to exclude certain tax hikes.
Prop 5 now only covers bonds. It also would prevent local governments from using the money to buy up existing single-family homes and converting them into affordable units.
What does a YES vote on Prop 5 mean?
A YES vote on this measure means certain local bonds or other property-related taxes could be approved with a 55% vote in lieu of the state's two-thirds approval rate.
It would only impact funds related to affordable housing, supportive housing or public infrastructure.
What does a NO vote on Prop 5 mean?
A NO vote means the approval percentage will remain a two-thirds supermajority for bonds related to affordable housing, supportive housing or public infrastructure.
Who supports Prop 5?
- AIDS Healthcare Foundation
- California Democratic Party
- California Professional Firefighters
- California State Building and Construction Trades Council
- California Labor Federation
- League of Women Voters in California
- California YIMBY
Supporters say Prop 5 would empower local governments to address immediate priorities without having to wait for state or federal funding. They also argue the current standard of allowing one-third of voters to overrule the wishes of two-thirds of voters is undemocratic.
Who opposes Prop 5?
- California Chamber of Commerce
- California Association of Realtors
- Howard Jarvis Taxpayers Association
- National Federation of Independent Businesses
- California Republican Party
- Catalyst for Local Control
- Silicon Valley Leadership Group
Critics have said the language of Prop 5 is too vague and "infrastructure projects" could apply to anything. They say the cost is placed on property owners, who might make up a minority of voters.
Opponents also say potentially irresponsible financial decisions should be made with a broad consensus and not just a narrow majority.
Official Ballot Summary
Allows approval of local infrastructure and housing bonds for low- and middle-income Californians with 55% vote. Accountability requirements.
Fiscal Impact: Increased local borrowing to fund affordable housing, supportive housing, and public infrastructure. The amount would depend on decisions by local governments and voters. Borrowing would be repaid with higher property taxes.
Supporters: California Professional Firefighters; League of Women Voters of California; Habitat for Humanity California
Opponents: California Taxpayers Association; California Hispanic Chambers of Commerce; Women Veterans Alliance