- California’s Proposition 1 would authorize an $11.25 billion Veterans and Affordable Housing Bond, with voters deciding the measure next week.
- EAH Housing’s Welton Jordan says the bond targets the gap between building costs and what affordable rents can support, and can help unlock tax credits and private capital.
- EAH has more than 1,500 California homes that could benefit, and Jordan says predictable funding helps developers plan, finance and keep a pipeline moving.
California voters head to the polls next week with an $11.25 billion bond for housing on the ballot, and a developer says it could change what projects can pencil, GlobeSt reports.
Proposition 1, the Veterans and Affordable Housing Bond, aims at the shortfall that opens when construction costs outrun the rents affordable housing can charge.
Get Smarter about what matters in CRE
Stay ahead of trends in commercial real estate with CRE Daily – the free newsletter delivering everything you need to start your day in just 5-minutes
The Gap It Targets
Welton Jordan leads real estate development at EAH Housing. He told GlobeSt that the bond addresses one of the sector’s biggest hurdles.
Public funding helps close financing gaps. It also attracts other sources, including federal credits, local funds and private capital, Jordan said. Together, these sources can make projects viable when no single source can fund them alone.
Why Predictability Counts
Reliable funding helps developers plan ahead and arrange financing, Jordan said. As a result, projects can keep moving forward.
EAH estimates that more than 1,500 California homes could benefit.
Why It Matters
Affordable housing developers rely on several funding sources. Therefore, a dependable public contribution can determine whether a project moves forward.
GlobeSt presents California’s vote as a test case for other states. Its outcome could shape how they use public funding and policy to build and preserve housing.
California’s vote is also part of a broader wave of real estate-related ballot measures. In July, we covered 26 ballot measures across 13 states. Those proposals covered taxes and other property issues, including California’s billionaire-focused Prop 40.
What’s Next
Next week’s result will show whether California adds this funding layer. Meanwhile, affordable housing providers in other states will watch how the measure affects project feasibility.
