ACA 10: Local government financing: affordable housing and public infrastructure: voter approval.

Assembly Constitutional Amendment No. 1 of the 202324 Regular Session (ACA 1) would, if adopted by the people, amend Section 4 of Article XIIIA, Section 2 of Article XIIIC, and Section 3 of Article XIIID of, and would add Section 2.5 of Article XIIIC to, the California Constitution, relative to local finance. Under these provisions, ACA 1 would condition the imposition, extension, or increase of a sales and use tax or transactions and use tax imposed in accordance with specified law or a parcel tax by a local government for the purposes of funding the construction, reconstruction, rehabilitation, or replacement of public infrastructure, affordable housing, including downpayment assistance, or permanent supportive housing, or the acquisition or lease of real property for those purposes, on the proposition proposing that tax being approved by a majority vote of the membership of the governing board of the local government and by 55% of its voters voting on the proposition and the proposition includes specified accountability requirements. ACA 1 would also make conforming changes.

This measure would remove the above-described provisions of ACA 1 relating to special taxes and make conforming changes in other provisions of ACA 1. The measure would direct the Secretary of State to make those amendments in ACA 1.

ACA 1 would create an additional exception to the 1% ad valorem property tax rate limit for an ad valorem tax or special assessment to pay the interest and redemption charges on bonded indebtedness incurred by a city, county, or special district, as defined, to fund the construction, reconstruction, rehabilitation, or replacement of public infrastructure, affordable housing, including downpayment assistance, or permanent supportive housing, or the acquisition or lease of real property for those purposes, if the proposition proposing that tax is approved by 55% of the voters of the city, county, city and county, or special district, as applicable, voting on the proposition on or after the effective date of ACA 1 and on the proposition including specified accountability requirements. ACA 1 would provide that this exception applies to an ad valorem tax for these purposes that is submitted at the same election as ACA 1.

This measure would specify that the proposition proposing bonded indebtedness for which an ad valorem tax may be imposed under ACA 1, and any measure imposing an ad valorem tax for these purposes, may be voted on at the same election as ACA 1 or at a later election held after the effective date of ACA 1. The measure would also modify the definition of affordable housing for these purposes to include housing developments, or portions of housing developments, that are affordable to individuals, families, seniors, people with disabilities, veterans, or first-time homebuyers, who are lower income households or middle-income households earning up to 150% of countywide median income, capitalized operating reserves, downpayment assistance programs, first-time homebuyer programs, permanent supportive housing, as defined, and associated facilities, if used to serve residents of affordable housing. The measure would also modify the definition of public infrastructure for these purposes to include, among other things, facilities or infrastructure for the delivery of public services, including education, police, fire protection, parks, recreation, open space, emergency medical, public health, libraries, flood protection, streets or highways, public transit, railroad, airports, and seaports. The measure would make conforming changes and direct the Secretary of State to make those amendments in ACA 1.

ACA 1 would authorize the Legislature, subject to a²/₃ vote, to enact laws establishing additional accountability measures consistent with the purposes and intent of the bonded indebtedness provisions of ACA 1.

This measure would additionally authorize the Legislature, subject to a²/₃ vote, to enact laws imposing additional conditions or restrictions on the acquisition or lease of real property for purposes described in the bonded indebtedness provisions of ACA 1. The measure would also require that any repeal of those conditions or restrictions be subject to a ²/₃ vote.

ACA 1 would require the approval of 55% of the voters of the city, county, city and county, or special district, as applicable, to incur bonded indebtedness, exceeding in any year the income and revenue provided in that year, that is in the form of general obligation bonds issued to fund the construction, reconstruction, rehabilitation, or replacement of public infrastructure, affordable housing, or permanent supportive housing projects, if the proposition proposing that bond includes specified accountability requirements. ACA 1 would specify that this 55% threshold applies to any proposition for the incurrence of indebtedness by a city, county, city and county, or special district for these purposes that is submitted at the same election as ACA 1.

This measure would specify that this 55% threshold applies to any proposition for the incurrence of indebtedness by a city, county, city and county, or special district for these purposes that is submitted at the same election as ACA 1 or at a later election held after the effective date of ACA 1. The measure would direct the Secretary of State to make those amendments in ACA 1.