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Prop 46

THE IMPORTANCE OF PROP 46:

HOUSING & EMERGENCY SHELTER

TRUST FUND ACT OF 2002

CaliforniaÕs lack of affordable housing is one our most severe infrastructure failings. As of August 2002, only 28 percent of California families can afford to buy their own home, one-third of all renters spend more than 50% of their income for housing, and over 360,000 in our state are homeless. This disparity creates negative social and economic impacts that compound every day.

Creating more affordable housing in the East Bay has been a top priority for EDAB. One of the recommendations in EDAB's Jobs/Housing Task Force report was to advocate for bond measures focused on providing funding for affordable housing projects to assist our local jurisdictions in meeting their housing goals. While a bond measure alone cannot solve all affordable housing problems, it does provide much needed revenue that is dedicated to the development of affordable housing.

In September 2002, EDAB's Executive Committee voted to endorse the State housing bond measure, now known as Proposition 46, the Housing and Emergency Shelter Trust Fund Act of 2002. We urge you to do as much as you can to support this proposition by sending a letter to the editor, writing an Op Ed article, getting the word out to your friends and colleagues, and doing whatever else you can to support the campaign. EDAB realizes there are numerous other important issues on the ballot, but as our Executive Committee has taken an official position on this particular proposition, we want to alert you to this important issue.

Click here to view Locked Out 2002, a report on the housing crisis from the California Budget Project.

FACT SHEET

To address CaliforniaÕs dire need for affordable housing, a coalition of senior organizations, business groups, labor

unions, nonprofit housing and homeless advocates, developers, educators, local governments and numerous charitable

organizations have joined together to support Prop 46, the Housing and Emergency Shelter Trust Fund Act of 2002 on the

November ballot.

What does the Housing & Emergency Shelter Trust Fund Act do?

Finances $2.1 billion in affordable housing construction through a state bond:

$910 million for rental housing for low-income seniors, disabled persons, and families with children.
$495 million for homeownership programs, including sweat equity housing and down payment assistance for low and moderate-income families.
$390 million for emergency shelters and permanent housing with support services for homeless seniors, battered

women, mentally ill people and veterans.

$200 million for farm worker housing (rental and ownership).
$100 million for incentives for local governments to approve housing developments.
$5 million for local code enforcement to revitalize neighborhoods.

Why is this measure needed?

To address CaliforniaÕs growing housing crisis, housing construction must increase significantly to meet the demands of a

growing population. The biggest gap in production is in affordable housing for lower income working families. As a

result:

Over 360,000 Californians are homeless, according to the Department of Housing and Community Development.

The most rapidly increasing segments of the homeless population are seniors and families with children.

One-third of all renters, half of all low-income renters, and three-fourths of all very low income renters spend

more than 50% of their income for housing. (30% is considered Òaffordable.Ó)

Only 28% of Californians can afford the median priced home in the state, compared to 55% nationally.

How will passage of this measure address CaliforniaÕs housing crisis?

By creating up to 22,000 permanently affordable rental units.
By enabling more than 65,000 California families to purchase their own house.
By providing housing assistance for 12,000 to 24,000 farm worker families.
By creating 31,000 new domestic violence and homeless shelter beds.

Where is the fiscal accountability?

The measure includes provisions to ensure proper administration of the bond proceeds at both the state and local levels:

Bureau of State Audits will conduct audits to ensure that bond proceeds are awarded in a timely fashion and in

compliance with the provisions set forth in the bond measure.

Oversight of administering the money to local community development agencies and nonprofit agencies by the

Department of Housing and Community Development, with policing authority by the Bureau of State Audits.

What other benefits will the measure generate for California?
New Investment: At least $13 billion in private investment and federal funds
Jobs: Approximately 276,002 full time jobs and $9.38 billion in wages
Spending: $42 billion in spending for home-related goods and services

926 J Street, Suite 1400 Sacramento, CA 95814 Phone: 916-447-0531

Paid for by Yes on 46, ID# 1244196

FREQUENTLY ASKED QUESTIONS ABOUT PROPOSITION 46

In our communities, the problems of safe and clean shelters, housing affordability, and homelessness have
gotten progressively worse. Proposition 46 is an important step forward in providing housing and
emergency shelters for needy Californians.

Q: What is Proposition 46?

A:         Proposition 46 is a $2.1 billion bond measure that provides emergency shelters for battered women,
affordable housing for seniors, low-income families and homeless shelters with social services. Proposition
46 also allocates hundreds of millions of dollars to provide housing loan assistance for low- and moderate-income families Ð such as seniors, families with children, teachers, disabled persons, veterans and working
people. Proposition 46 funds housing and shelter programs that have a proven track record of success.

Q: Why is Proposition 46 needed?

A: The housing crisis in California affects us all. Statewide, the average home price now stands at $321,000--
up more than 25 percent from a year ago. Just 28 percent of California households can now afford to buy
their own home, down from 34 percent last year. One-third of all renters spend more than 50 percent of
their income for housing. Families, battered women, low-income seniors, and laid-off workers with few
resources too often find themselves out on the street without shelter. According to the State Department of
Housing, over 360,000 Californians are homeless and the numbers are rising. Additionally, homeless and
domestic violence facilities are in disrepair and severely impacted.

Proposition 46, the Housing and Emergency Shelter Trust Fund Act of 2002, provides significant help to
these pressing problems.

Q: Who will receive help from Proposition 46?

A:         Proposition 46 targets low and moderate-income Californians who need a helping hand to afford a decent
place to live. Proposition 46 will:

¯       Provide clean and safe rental housing for seniors
¯       Double the number of emergency shelter beds for homeless families, including battered women and children
¯       Provide down payment assistance to teachers, police officers, firefighters, veterans, and other low Ðto
¯       moderate-income homebuyers
¯       Give low- income families the chance to own their own homes through "sweat equity"
¯       Erect housing for agricultural workers
¯       Make rental housing accessible for persons with disabilities
¯       Fund construction of student housing for low-income U.C. and C.S.U. students

Q: How will Proposition 46 meet the needs of battered women and children?

A: Last year, 23,000 women and children were turned away from domestic violence shelters in California,
because of a lack of space. We can't turn our back on these families, who have nowhere else to go.
Proposition 46 will fund domestic violence shelters, through the Emergency Housing and Assistance
Program.

Q: How will Proposition 46 meet the needs of low-income senior citizens?

A:         Proposition 46 builds new emergency shelters and rental housing for seniors, whose numbers are increasing
among the homeless population. Just as important, it provides the funds to keep existing housing at
affordable rents instead of reverting to market rents. This helps seniors stay in their own homes and
apartments as long as possible.

Q: How will Proposition 46 meet the needs of homeless families with children?

A: The old stereotype of a "typical" homeless person was a single man on the streets. Today, one of the fastest
growing populations among the homeless is families with children. Rising unemployment rates, coupled
with escalating housing costs, are putting more and more working families at risk of losing their homes.
Homelessness is devastating for children, who not only lose their home but also their school community
when they don't have a permanent address. Proposition 46 sets aside $ 195 million to build emergency
shelters and $910 million to build permanently-affordable rental housing for families with children.

Q: Where will the money come from?

A:         Proposition 46 is a $2.1 billion general obligation bond that will be paid through existing funds in the state
general fund. Funding for Proposition 46 will not require a new tax.

Q: What parts of the state will receive funding?

A: Every city and every county in the state is eligible to receive funding from Proposition 46. That is why we
have tremendous local support for this measure including endorsements from the League of California
Cities and the California State Association of Counties.

Q: What accountability measures are included to make sure the
money is spent wisely?

A:         Proposition 46 requires regular, independent audits of all programs and expenditures to ensure
every cent is spent properly.

Q: Are there any benefits for the economy?

A: Proposition 46 jump-starts a sagging economy with a new infusion of dollars earmarked for the construction
of affordable housing. And those dollars will go a lot farther than the $2.1 billion the bond raises.
Proposition 46 monies can make California eligible for matching federal grants and will encourage private
investment. In fact, economists estimate at least $13 billion in private and federal funds will be generated
by Proposition 46.

Proposition 46 projects will create 276,000 full-time jobs and pay working men and women $9.38 billion in
wages. And new homeowners will spend an estimated $25 billion on home goods and services, pumping
even more dollars into local economies.

Q: Who supports Proposition 46?

A: Yes on 46 is supported by a broad cross-section of Californians who believe it is a prudent and measured
response to an emergency shelter and affordable housing situation that is in crisis. Endorsers include:

¯       AARP
¯       United Farm Workers of America, AFL-CIO
¯       Alameda County Board of Supervisors
¯       Alameda County Housing and Community Development
¯       California State Sheriffs Association
¯       California Building Industry Association
¯       California Chamber of Commerce
¯       California Business Roundtable
¯       California Association of Mortgage Brokers
¯       California Teachers Association
¯       California Nurses Association
¯       California Professional Firefighters
¯       Contra Costa County
¯       Contra Costa Central Labor Council
¯       East Bay Housing Organizations (EBHO)
¯       Economic Development Alliance for Business (EDAB)
¯       Housing California
¯       League of Women Voters of California
¯       League of California Cities
¯       Service Employees International Union
¯       Silicon Valley Manufacturing Group
¯       Statewide California Coalition for Battered Women
¯       Western Center on Law and Poverty

Editorials in Support

San Jose Mercury News

Posted on Fri, Oct. 11, 2002

Vote yes on Prop. 46; affordable housing is a crucial part of healthy communities

THE shortage of affordable housing is a crisis across California, but nowhere moreso than in Silicon Valley.

Here teachers, nurses, even some tech workers are forced to commute for hours because they can't afford to live near where they work. Young people often move elsewhere to start their careers for fear they'll never be able to buy a home here. The ranks of the homeless in Santa Clara County include many who hold regular, though low-wage, jobs.

Proposition 46, a $2.1 billion housing bond, is an overdue step in the right direction, increasing the supply of affordable housing all over California. Voters should approve it.

Proposition 46 can put more than 100,000 families and individuals into decent housing. Besides building thousands of affordable apartments, it will help some folks purchase their first homes, the springboard to financial stability. It will promote smart growth, and it will offer special help to the neediest, including the homeless and victims of abuse.

No new government bureaucracies will be created. The money will go into existing programs that have long lists of good projects waiting for financing.

Why should voters who already have nice homes vote for this bond? Because a healthy community requires decent housing for all who contribute to its well-being, including the people who teach your children, mow your lawn, cook your restaurant meals and show up when you dial 911. There is no room for many of them in our communities now, and that is wrong.

The lack of housing for workers discourages companies from expanding here. As a measure of this bond's importance to industry, Carl Guardino, head of the Silicon Valley Manufacturing Group, is co-chairing the statewide campaign to pass it.

This may seem an odd time to float a housing bond, but it is ideal. Proposition 46 will help to jump start the flagging economy by prompting some $13 billion in private investment and creating nearly 300,000 construction jobs. At the same time, it will help the state catch up on its shortage of worker housing before recovery starts a new wave of job creation. Grasp the opportunity. Vote yes on 46.

Contra Costa Times
Posted on Tue, Oct. 22, 2002

Vote yes on Prop. 46

SAY HOUSING IN California and soon you'll be discussing the problems. The two go together here like peanut butter and jelly. It starts with the expense. Whether you're renting or buying, it's generally a significant chunk of your paycheck.

Someone may note how tough it is on the young, the single, the elderly. Depending on the group, the homeless will come into the conversation. If there were more affordable homes, many of the working poor, families, single mothers, teens and young adults, wouldn't be homeless.

The discussion may turn to the price of land, building and maintenance, which keep even shelters from being built. It is an in-depth conversation that recognizes the inability to afford to build or buy homes to be used as shelters, which affects another segment of the population: battered spouses and their children.

Somewhere, it seems this discussion led to the writing of Proposition 46, the Housing and Emergency Shelter Trust Fund Act, which finances $2.1 billion in affordable housing construction through a state bond. We are encouraged to see this initiative on the ballot, despite having no big-name movie star pushing for it, nor big campaign donations behind it.

People in need are definitely the driving force behind this proposition. Our concern for their growing numbers, for those who find themselves without housing options, outweighs our concern for the state's financial straits. We hope that the economic downturn is only temporary; it is obvious that the state's housing plight is not.

We support Prop. 46 because it promises to provide 22,000 permanently affordable rental units, enable 65,000 families to purchase a house, add 31,000 beds for the homeless and domestic violence victims and assist up to 24,000 farm worker families with housing needs. We like this measure because it is funded from state resources without raising taxes, and it offers independent audits and strict accountability provisions.

With state agencies counting the homeless at more than 360,000, affordable housing is a dire need for the entire state; therefore, it is appropriate for the state to address it, and to recognize the link between the housing and shelter issues. This proposition can change the livability of our state. Vote yes on Prop. 46.

Sample Letters to the Editor

Select one of the draft letters below, personalize it, and send it to your local newspaper.

Letter #1: We can afford Prop 46
Proposition 46 is a critical step towards ending the housing crisis. There are virtually no funds left in the State budget for housing, and Prop 46 will start to fill that gap with $2.1 billion that wonÕt raise taxes. The California legislature approved and issued Prop 46 for the ballot, after recognizing it would not push our indebtedness over the edge. This is our chance to tell the State that our spending priorities should be housing and shelter for seniors, homeless families, and victims of domestic violence. TheyÕre the ones who cannot afford to see Prop 46 fail. Vote Yes on 46.

Letter #2: Prop 46 will help.
Every night, hundreds of thousands of Californians live without the security of knowing where they will sleep the next day. Yes on Prop 46 is a kick-start to increasing the much-needed supply of shelters and affordable housing. It will provide $2.1 billion to house seniors on fixed incomes, the working poor, homeless families with children, and battered women struggling to get out of domestic violence situations. Proposition 46 is a vital part of CaliforniaÕs arsenal in the battle against the affordable housing crisis.