Real Estate OC: Making Sense of 11 Propositions on the Ballot

Tony Capitelli
By Tony Capitelli

Now that the California Supreme Court has blocked Proposition 9, the Three Californias Initiative, eleven propositions remain on the November ballot. Among them, Orange County REALTORS® supports Proposition 5 (Property Tax Transfer) and opposes Proposition 10 (Local Rent Control).

Municipal Bonds: from the California State Treasurer

Q. What is a municipal bond?
A. A bond is a loan. There are many types of municipal bonds, but they have only one purpose—to borrow money. It involves a promise to pay money, with interest, on a specified date. General Obligation Bonds enjoy the “full faith and credit” of California. California currently has $74.9 billion in outstanding issued general obligation bonds, and $24.6 billion in general obligation bonds authorized but not yet issued.

Proposition 1 (Housing Bond)

is a $4 billion general obligation bond that would fund various housing-related programs and projects, and housing loans for veterans.

Supporters: Democratic members of the state Assembly and Senate, California Housing Partnership Corporation, Chan Zuckerberg Advocacy, Various Nonprofit Housing Organizations
Opponents: Howard Jarvis Taxpayers Association

Proposition 2 (Millionaire Mental Health Tax Reallocation)

would allow the state to use funds from Proposition 63 (passed in 2004) for homelessness prevention housing for those in need of mental health services. This 1 percent tax on those making at least $1 million cannot currently be used for housing.

Supporters: California State Association of Counties, League of California Cities, Sen. Kevin De Leon, Various Nonprofit Housing Organizations
Opponents: National Alliance on Mental Illness (NAMI) Contra Costa

Proposition 3 (Water Bond)

is a $8.877 billion general obligation bond to fund various infrastructure projects related to water. These include storage, environmental protection, and dam repairs.

Supporters: Sen. Dianne Feinstein, John Cox, Agricultural Council of California, Irvine Ranch Water District, California Chamber of Commerce
Opponents: None on record

Proposition 4 (Children’s Hospital Bond)

is a $1.5 billion general obligation bond to fund construction, expansion, renovation, and equipping of qualifying children’s hospitals.

Supporters: California Hospital Association, California Teachers Association, Los Angeles Chamber of Commerce, California Democratic Party
Opponents: Howard Jarvis Taxpayers Association

Proposition 5 (Property Tax Transfer)

is an initiative sponsored by the California Association of REALTORS® (C.A.R.). California is experiencing a housing affordability crisis. Only 21 percent of Orange County residents can afford a median-priced home. One factor contributing to this crisis is the fact that people are remaining in their homes much longer. For example, in Orange County, people are living in their homes an average of twenty-three years. One of the obstacles to moving is that the property tax basis of a new home undoubtedly will be much higher than that of a current home. For property owners fifty-five years of age and over, Proposition 5 is the solution to this problem. It would allow them to transfer their property tax basis to a new home of equal or lesser value. If the new property is of greater value, the transfer would result in a blended basis. The number of such transfers would be unlimited. Although the provisions of this measure apply to homeowners who are fifty-five years old and older, C.A.R. believes that its passage would encourage some older folks to move, thereby freeing up much-needed housing stock for younger generations.

Supporters: California Association of REALTORS® (Author), California Chamber of Commerce, Homeownership for Families and Tax Savings for Seniors, Howard Jarvis Taxpayers Association, Association of California Cities Orange County, Orange County Business Council.
Opponents: California Teachers Association, YIMBY Action

Proposition 6 (Gas Tax Repeal)

would repeal the 2017 tax on gas and vehicle registration. The funds from these taxes and fees are specifically designated for repairs and improvements to local roads, state highways, and public transportation.

Supporters: Rep. Mimi Walters, Rep. Kevin McCarthy, Rep. Paul Ryan, John Cox, California Republican Party, Howard Jarvis Taxpayers Association, National Federation of Independent Businesses
Opponents: California Chamber of Commerce, Gov. Jerry Brown, Orange County Business Council, California Alliance of Jobs, Southern California Partnership for Jobs, League of California Cities, California Association of Counties, California Transit Association, California Hispanic Chamber of Commerce

Proposition 7 (Permanent Daylight Savings Possibility)

would allow the California State Legislature to establish a permanent daylight savings time by a two-thirds vote if this change is permitted by the federal government. Various members of the state Legislature support and oppose this measure.

Proposition 8 (Limits of Dialysis Clinics Revenue)

would limit the amounts outpatient kidney dialysis clinics may charge for patient care and impose penalties for excessive charges. Requires annual reporting to the state regarding clinic costs, patient charges, and revenue. Prohibits clinics from discriminating against patients based on the source of payment for care.

Supporters: Californians for Kidney Patient Protection, SEIU–United Healthcare Workers West, CalPERS
Opponents: California Dialysis Council, California Medical Association, National Kidney Foundation, California Chamber of Commerce, numerous regional Chambers of Commerce, American Nurses Association

Proposition 10 (Local Rent Control)

would repeal the Costa-Hawkins Act. The Costa Hawkins Act prohibits local jurisdictions from implementing rent control on single-family homes and new development. Repealing this Act would allow local jurisdictions to impose rent control in these instances. California is experiencing a housing affordability crisis. Those concerned with this crisis often look toward top-down government solutions like rent control. Unfortunately, history has shown that rent control simply worsens the problem. Rent control discourages investment, meaning much-needed new housing is more difficult to build, and current housing stock is not well maintained. Rent control also reduces the amount of available inventory because tenants are unlikely to leave rent-controlled units.

Supporters: Coalition for Affordable Housing, California Democratic Party, AFSCME California PEOPLE, California Nurses Association, California Teachers Association, SEIU California
Opponents: California Republican Party; Californians for Responsible Housing; Sponsored by the California Apartment Association, No on Prop 10—A Flawed Initiative That Will Make the Housing Crisis Worse; a Coalition of Housing Advocates, Renters, Large and Small Businesses, Taxpayer Groups, and Veterans; Californians for Affordable Housing, No on Proposition 10, Sponsored by the California Rental Housing Association

Proposition 11 (Ambulance Employee Exemption)

makes the labor law that entitles hourly employees to take work (meal and rest) breaks without being on call inapplicable to private-sector emergency ambulance employees. Also removes some employer liability and adds employer requirements.

Supporters: California Ambulance Association, American Medical Response, Californians for Emergency Preparedness and Safety
Opponents: California Teachers Association

Proposition 12 (Farm Animal Confinement)

prohibits certain commercial sales of specified meat and egg products from animals confined in noncomplying manner.

Supporters: Prevent Cruelty California, The Humane Society of the United States, National Consumers League, Center for Food Safety, Animal Legal Defense Fund
Opponents: Association of California Egg Farmers, National Pork Producers Council, People for the Ethical Treatment of Animals, Humane Farming Association