$900M HOUSING BOND PROPOSAL FALLING SHORT

Measure would raise taxes in S.D. to pay for low-income units

Measure A, a proposed $900 million housing bond in the city of San Diego, was falling short of the twothirds approval rate it needs from voters, according to early election returns released Tuesday night by the county registrar of voters.

The measure would raise property taxes to pay for an estimated 4,700 subsidized rental units and 2,800 units for the formerly homeless, called “permanent supportive” housing because it comes with counseling and other services.

Measure A has sharply divided local organizations and community leaders along ideological lines.

It was endorsed by dozens of Democratic politicians and left-leaning organizations like Habitat for

Humanity, San Diego Pride, the Environmental Health Coalition and Business for Good San Diego.

It was opposed by the county Republican Party, Republican Mayor Kevin Faulconer, two Republican City Council members, the San Diego Association of Realtors and the Southern California Rental Housing Association.

Supporters have focused on the measure helping to sharply reduce homelessness and allowing San Diego to get its fair share of state matching funds for subsidized housing.

Other cities get state funds that match their local funds for subsidized housing, but San Diego is far behind Los Angeles and San Francisco because it lacks the kind of local revenue stream Measure A would provide.

Research by local nonprofit Circulate San Diego found that in 2018 San Diego received 5 percent of state matching funds, but the city makes up 8 percent of the state’s population.

Critics call Measure A an unfair burden to place on middle-class homeowners as the economy enters a sharp downturn sparked by the COVID-19 pandemic.

City officials estimate property owners would see an annual tax increase of $3 per $100,000 in assessed value in fiscal year 2022. That would steadily rise to $20.85 in fiscal 2028 as more bonds are sold and then remain at that level through 2068.

Opponents say that’s too big of a spike, noting that the owner of a home valued at $500,000 would see a property tax surcharge of more than $100 per year when all of the bonds have been sold in fiscal 2028.

Multiple studies by the city have estimated that about 5,000 housing units are needed to solve San Diego’s homelessness problem. Measure A would pay for an estimated 7,500 units.