November 8, 2018 How California Voted on Propositions that Affect CRE
2018 California CRE Propositions was recently covered by BisNow:
There could be a boom in affordable housing in the coming years based on the way California voted in the 2018 midterm election. There were a number of propositions and measures that Californians voted on that will affect commercial real estate in the next few years.
California State Proposition 1: Authorizes bonds to fund specified housing assistance programs.
Results: Approved 54% to 46%
Prop 1 will allow California to issue $4B in bonds to fund affordable housing and veterans programs.
California State Proposition 2: Authorizes bonds to fun existing housing programs for individuals with mental illness.
Results: Approved 61% to 39%
Prop 2 will allow the state to sell $2B in bonds to fund the construction of housing and support services for mentally ill and homeless people, or those in need of mental health services on the brink of homelessness.
California State Proposition 4: Authorizes bonds funding construction at hospitals providing children’s healthcare.
Results: Approved 61% to 39%
Prop 4 will authorize California to sell $15B in bonds to fund grants for construction, expansion, and renovation and other capital improvements of children’s hospitals and other hospitals that provide services for children.
California State Proposition 5: Changes the requirement for certain property owners to transfer their property tax base to the replacement property.
Results: Rejected 58% to 42%
A yes vote on Prop 5 would have allowed seniors who are age 55 and over, severely disabled individuals and those whose property has been impacted by a natural disaster to carry over their home property tax assessment to a new home regardless of price.
California State Proposition 6: Eliminates certain road repair and transportation funding.
Results: Rejected 55% to 45%
A yes vote on Prop 6 would have repealed the 2017 road repair and accountability act transportation law and made it harder for the state legislature to enact measures that increase taxes on gas and/or diesel fuel.
California State Proposition 8: Regulates amounts outpatient kidney dialysis clinics charge for dialysis treatments.
Results: Rejected 62% to 38%
A yes vote on Prop 8 would have limited dialysis clinics’ revenue cap to 115% of specified direct patient care service costs and healthcare improvement costs.
California State Proposition 10: Expands local governments’ authority to enact rent control on residential property.
Results: Rejected 62% to 38%
A yes vote on Prop 10 would have repealed the 1995 Costa-Hawkins rental housing act and expand local cities and authorities’ ability to enact rent control.
San Francisco Proposition A: Embarcadero Seawall Earthquake Bond
Results: Approved 82% to 18%
Prop A will allow the city to issue $425M in bond debt for the construction, reconstruction, improvement, seismic strengthening, and repair needed on the Embarcadero Seawall.
San Francisco Proposition C: Additional business taxes to fund homeless services
Results: Approved 60% to 40%
Prop C will impose additional business taxes, a “homelessness gross receipts tax” that averages less than 0.5% for San Francisco businesses with more than $50M in gross receipts. The funds will be used to house the homeless and expand shelter beds, fund legal assistance, and rent subsidies and fund mental health and substance abuse services.
Berkeley Measure O: Affordable Housing Bonds
Results: Approved 76% to 24%
Measure O will create and preserve affordable housing for low-income households, working families, and individuals who qualify.
Berkeley Measure Q: Rent Amendments
Results: Approved 69% to 31%
Measure Q will make accessory dwelling units exempt from rental control on properties that are owner-occupied.
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