Housing Crisis in the Bay Area: Will the $20 Billion Bond be Scrapped?

The Bay Area Housing Finance Authority (BAHFA) is considering pulling the $20 billion regional housing bond from the November ballot due to dwindling voter support for new taxes. This decision comes at the last minute, as per California elections code, Wednesday is the final day for BAHFA to withdraw the measure. A poll conducted in early June found that only 55% of voters supported the bond, which is below the two-thirds vote threshold required to authorize a bond. Voters will also be asked to approve an amendment to the California constitution, Proposition 5, that would reduce the threshold to 55%. However, the amendment's viability is under threat as the Sacramento Superior Court sided with the Howard Jarvis Taxpayers Association on their lawsuit over the amendment. If Prop. 5 doesn't pass, the housing bond will likely not pass either.

The bond has faced legal challenges, and pulling it from the ballot would be a significant blow to Bay Area city and county leaders who are counting on the funds to help build new income-restricted housing and interim shelters for the homeless. The bond would provide funds to preserve and build up to 90,000 affordable homes, but critics take issue with its high cost. The bond would levy an estimated annual property tax of $18.98 per $100,000 of assessed value, or about $265 per year for a $1.4 million home or commercial property. The total cost, including principal and interest on the bond, is estimated at $48.3 billion and would take more than 50 years to pay off. For BAHFA, it's a question of whether to spend more money on a measure they have already sunk

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