Protect Affordable Housing

THE PROBLEM: STATE RAIDS AND BORROWING OF LOCAL GOVERNMENT AND TRANSPORTATION FUNDS HURT EFFORTS TO BUILD HOUSING FOR CALIFORNIANS.

California voters have overwhelmingly passed separate ballot measures to prevent the state from taking local government, transit and transportation funds.  Despite this, last year the state passed a budget that borrowed or took approximately $5 billion in city, county, transit, redevelopment and special district funds, and the state continues to threaten to borrow or take billions in transportation funds every year. The borrowing and raiding of local government and transportation funds jeopardize efforts to build affordable housing, revitalize and redevelop the inner city, and to build new communities:

  •  Raiding redevelopment funds significantly harms efforts to build affordable housing.  Redevelopment agencies are the second largest funder of affordable housing in California behind only the federal government. State raids of redevelopment funds result in a direct and significant reduction in the development of affordable housing for Californians.
  • Raiding or borrowing local government and transportation funds slows builders from being able to put units in the ground. Local governments provide the services and infrastructure that are critical for the development of new communities, including land-use approvals, local streets, roads, sewer, water and other infrastructure, police and fire protection and more. When local funds are reduced, it slows housing development and/or increases pressure to increase fees and taxes on businesses to pay for these services.
  • Raiding or borrowing any local government funds immediately harms the economy and the housing sector, which is a significant job creator. Housing creates jobs, fuels local economies, and is a necessary part of overall economic health in California. Additionally, housing communities benefit from reliable transportation and public transit networks in order for residents to efficiently travel throughout the area.


PROP. 22 IS THE SOLUTION: 
PROHIBIT THE STATE FROM RAIDING LOCAL GOVERNMENT, TRANSIT AND TRANSPORTATION FUNDS.

Prop. 22, the Local Taxpayer, Public Safety and Transportation Protection Act, on the November 2010 statewide ballot, would

  • Prohibit the state from taking, borrowing or redirecting local taxpayer funds dedicated to public works, public safety, and other vital local services that are needed to support new housing. Prop. 22 closes loopholes to prevent the taking of local taxpayer funds currently dedicated to cities, counties, special districts and redevelopment agencies, and revokes the state’s authority to borrow local government property tax funds.
  •   Prohibit the state from redirecting or taking tax increment funds collected within a redevelopment project area. While Article 16 of the constitution already requires redevelopment funds to be used solely for redevelopment purposes, this additional language would explicitly prohibit the Legislature from redirecting, borrowing or taking redevelopment funds. Prop. 22 would protect a key funding source for affordable housing, and inner city revitalization.
  • Protect vital, dedicated transportation and public transit funds from State raids.  Prop. 22 would prohibit the State from redirecting, borrowing or taking the gasoline excise tax (HUTA) allocated to cities and counties for local street and road maintenance and improvements. Prop. 22 also prohibits the State from taking or redirecting public transportation account revenues dedicated to public transit.

 

Paid for by Yes on 22/Californians to Protect Local Taxpayers and Vital Services, a coalition of taxpayers, public safety, local government, transportation, business and labor, with major funding from the League of California Cities (non-public funds and CitiPAC) and the California Alliance for Jobs Rebuild California Committee
1121 L Street, #803 | Sacramento, CA 95814