4 Item 2.
Recommendation to receive and file a staff presentation on Propositions 1 and 43 and consider recommending support, opposition, or no position to the City Council.
5 Item 2.
Supporting or Opposing Ballot Measures
• State law prohibits City officials from using City resources in connection with supporting or opposing ballot measures. • After a ballot measure is added to the ballot, City officials may state the City's position regarding a measure on record at a regularly scheduled City Council meeting, open to the public, where the public is given an opportunity to express their views, including speaking in support of or opposition to the measure.
6 Proposition 1
• The Veterans and Affordable Housing Bond Act of 2026 authorizes $11.25 billion in general obligation bonds for affordable housing and veterans' homeownership assistance. Funding would be allocated by the following categories:
o $5.1 billion to build and rehabilitate rental housing through the Multifamily Housing Program
o $2.1 billion to acquire, rehabilitate, or preserve affordable housing units, and provide supportive housing for those experiencing homelessness
o $1.25 billion for the CalVet Home Loan Program, state funded mortgages for CA veterans
o $1.1 billion for homeownership and downpayment assistance o $1 billion for farmworker, tribal, and student housing o $500 million for housing infrastructure
o $200 million to support local housing programs
7 Proposition 1
• Analysis by the California Legislature’s Nonpartisan Legislative Analyst’s Office (LAO) estimates the bond would help 40,000 Californians become homeowners and provide subsidies for up to 40,000 multifamily rental units.
Fiscal Impact
• The $10 billion general obligation portion would cost an estimated $580 million per year for 25 years, totaling approximately $17.39 billion (principal + interest) from the state General Fund. The $1.25 billion for a veterans housing program would not result in estimated state costs.
8 Proposition 1
Supporters
• Supporters of Proposition 1 argue: California needs additional resources to build new affordable housing, prevent vulnerable veterans and seniors from experiencing homelessness, and expand homeownership across the state.
• Supporters of Proposition 1 include: U.S. Vets, CA Federation of Teachers, Self-Help for the Elderly, Habitat for Humanity CA, CA Alliance of Child & Family Services, the League of California Cities, the Gateway Cities COG and the Cities of San Jose, Pasadena, Fairfield, Gonzales, Hemet, Berkeley, Salinas and Bell.
Opposition
• No formal opposition.
9 Proposition 43
• Limits voter’s ability to pass voter-proposed local special taxes by increasing percentage of votes needed to approve such ballot measure from a majority (over 50%) to two-thirds, beginning January 1, 2027.It would not retroactively affect taxes already passed, nor does it affect general taxes, which can still pass with a simple majority.
Examples of Impact Using Previous Votes:
• LA County Measure A (2024): passed with 58%; approximately over $600 million a year for County homelessness services and housing. Under Prop 43, it would have failed.
• LA County Measure E (2024): passed with 55%; approximately $152 million a year for firefighters, engines, and helicopters. Under Prop 43, it would have failed.
Fiscal Impact
• According to the LAO, local government revenues could be lower in the future due to the higher threshold, but the exact impact is unknown as it depends on future elections.
10 Proposition 43
Support
• Supporters of Proposition 43 argue that special interest groups take advantage of the simple majority threshold needed to pass special taxes, and that Proposition 43 would restore the two-thirds vote requirement intended by Proposition 13
• Supporters of Proposition 43 include the Howard Jarvis Taxpayers Association, California Taxpayers Association, Family Business Association of California, California Hispanic Chambers of Commerce, California Consumer Advocates for Affordability and Safety, and the California Small Business Association
11 Proposition 43
Oppose
• Opponents of Proposition 43 argue that the measure
weakens the power of voters by allowing a minority of voters to block local special taxes that a majority supports, and significantly limits the ability to raise revenue for local services such as fire, police, and roads.
• Opponents of Proposition 43 include California Professional Firefighters, Nurse Alliance of SEIU CA, California School Employees Association, the California Federation of Teachers, the League of California Cities and the Cities of San Jose, Pasadena, Paramount, Berkeley, Bell, and Port Hueneme