Title
Adoption of Resolution Supporting Proposition 5, the Lower Supermajority Requirement to 55% for Local Bond Measures to Fund Housing and Public Infrastructure Amendment, on the November 5, 2024 Ballot. (City Manager)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
Proposition 5 on the November 2024 Ballot will lower the necessary voter threshold from a two-thirds supermajority to 55 percent to approve local general obligation (GO) bonds and special taxes for affordable housing and public infrastructure projects. The City of Alameda’s (City) support for Proposition 5 is consistent with the principles adopted in the Legislative Agenda.
Staff is asking City Council for direction on whether to adopt a resolution of support for Proposition 5 on behalf of the City. City Councilmembers can also support the measure individually in their role as an elected official.
BACKGROUND
The City adopts a two-year Legislative Agenda that serves as a guide for advocacy efforts. By adopting a Legislative Agenda, City staff and the Mayor and City Council are able to react quickly to most legislative issues as they arise.
On May 2, 2023, City Council approved the 2023-2024 Legislative Agenda (Exhibit 1). The City’s adopted 2023-2024 Legislative Agenda supports legislation and proposals that promote financing mechanisms for the provision of affordable housing and land use and assist in the reorganization and replacement of existing infrastructure to support California’s growing population and state efforts that would reduce the vote threshold for local initiatives.
On September 8, 2023, the City submitted a letter of support to the California State Assembly for ACA 1 (Aguiar-Curry) which would propose a constitutional amendment to voters to lower the vote threshold from a two-thirds supermajority to 55 percent needed to approve local general obligation bonds and special taxes for affordable housing and public infrastructure projects.
On June 27, 2024, the City of Alameda submitted a letter of support to the California State Assembly for ACA 10 (Aguiar-Curry) which directed the Secretary of State to make amendments to ACA 1 that will be on the November 2024 statewide ballot as Proposition 5.
DISCUSSION
California's housing crisis impacts communities statewide, including locally in Alameda. Despite best efforts, the state’s housing supply remains inadequate to support California’s growing population and rising cost of living. The Department of Housing and Community Development, in its most recent statewide housing assessment, estimated that California must build an additional 100,000 units per year above recent averages of 80,000 units per year to meet the projected need for housing statewide. To meet this housing need, California must come up with creative and sustainable solutions to provide more housing options near school, work, and transportation.
Proposition 5 amends the Constitution, subject to voter approval, to reduce the vote threshold from two-thirds to 55 percent for local general obligation bonds, when proposed specifically for the construction, reconstruction, rehabilitation, or replacement of public infrastructure and affordable housing. The measure is targeted to the urgent needs of local communities, providing local governments with a more realistic financing option to fund an increase in the supply of affordable housing and address the numerous local public infrastructure challenges they are facing. This vote threshold is consistent with the 55 percent voter approval required for school bonds.
A yes vote means: Certain local bonds and related property taxes could be approved with a 55 percent vote of the local electorate, rather than the current two-thirds approval requirement. These bonds would have to fund affordable housing, supportive housing, or public infrastructure. A no vote means: Certain local bonds and related property taxes would continue to need approval by a two-thirds vote of the local electorate.
Proposition 5 supporters include the California Democratic Party, California State Building and Construction Trades Council, AIDS Healthcare Foundation, California Housing Partnership, and California YIMBY.
ALTERNATIVES
• Adopt a Resolution Supporting Proposition 5.
• Do not take a position on Proportion 5 on behalf of the City, but consider joining other elected officials in lending individual support.
FINANCIAL IMPACT
There is no financial impact to the City that would result from the adoption of this resolution.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda Municipal Code.
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378 and therefore no further CEQA analysis is required.
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Adopt a resolution supporting Proposition 5, the lower supermajority requirement to 55% for local bond measures to fund housing and public infrastructure amendment on the November 5, 2024 Ballot.
Respectfully submitted,
Sarah Henry, Communications and Legislative Affairs Director
Financial Impact section reviewed,
Margaret O’Brien, Finance Director
Exhibits:
1. 2023-2024 Alameda Legislative Agenda
2. Proposition 5 Official Title and Summary Prepared by the Attorney General
3. Legislative Analyst’s Office Analysis of Proposition 5