LOS ANGELES — California voters will decide this November whether to authorize $11.25 billion in new state borrowing to address the housing crisis through Proposition 1, a measure supported by housing advocates and developers but criticized by opponents concerned about the state’s growing debt.
In West Los Angeles, housing developers Daniel Glimcher and Simon Aftalian of STEP are working to expand affordable housing for veterans near the West LA VA Medical Center.
One of their latest projects, a 53-unit apartment building on Stoner Avenue, is expected to be completed in December.
The developers said they plan to deliver 3,000 apartments for veterans over the next four years.
Glimcher says their developments are designed with veterans’ needs in mind, from calming interior colors to locations near the West Los Angeles Veterans Affairs Medical Center and other resources, including public transportation.
Both developers support Proposition 1, even though their projects would not necessarily receive funding from the measure.
What would Proposition 1 do?
If approved, Proposition 1 would authorize $11.25 billion in bonds, including $10 billion for affordable housing construction, preservation and homeownership assistance. The remaining $1.25 billion would support home loans for veterans.
Supporters argue the investment could help address California’s housing shortage as developers face challenges securing adequate funding.
But opponents, including Republican state Sen. Tony Strickland, who represents Huntington Beach, argue the state cannot afford additional debt.
“These billions of dollars in bonds, what that is, it’s maxing out your credit card at a time when we know the state is going to have a structural budget deficit,” Strickland said.
According to the state’s Legislative Analyst’s Office, repaying the $10 billion housing bond would cost approximately $500 million to $600 million annually for about 25 years. The veterans’ home loan portion would be repaid through mortgage payments.
For developers like Glimcher and Aftalian, the measure represents another potential investment in addressing California’s housing needs. For critics, the question is whether the long-term benefits justify the cost.
Voters will decide the fate of Proposition 1 in the Nov. 3 general election.
Source: spectrumlocalnews.com
