Water measure failing, but housing, hospital bonds pass

A state ballot measure that would help modernize California’s aging water infrastructure was on its way to defeat late Tuesday.

Proposition 3, which had 47 percent of the vote with 30 percent of the precincts reporting, would approve $8.9 billion in state borrowing to pay for dozens of water projects, from new desalination plants to dam upgrades to cleanup of dirty water supplies. Trailing in the inland counties, it led in Alameda, San Mateo, Santa Clara and Sonoma counties. In San Francisco voters were approving it by a 60-40 margin.

If the measure passes, the Bay Area would stand to gain at least $250 million for ventures by water agencies and $200 million for restoring wetlands in San Francisco Bay. Much of the bond money would be doled out through competitive grants, with chunks reserved for fixing the Friant-Kern Canal in San Joaquin Valley and repairs at Oroville Dam.

Other state bond measures on the ballot: Proposition 1: The measure to fund housing programs for low-income families and veterans was winning approval, 52 percent to 48 percent.

Advocates of the $4 billion bond measure said the proposition would add 50,000 low-cost homes to California’s high-priced housing market. About a third of the units were slated for the Bay Area, a prospect that drew the support of San Francisco Mayor London Breed. In the city, it garnered 70 percent approval. Proposition 2: A measure that would create housing for homeless people with severe mental illness won, 59 percent to 41 percent.

Prop. 2 will allow the state to divert $2 billion in existing county mental health funds to finance bonds for housing.

Proposition 4: The measure to authorize $1.5 billion of borrowing for infrastructure at 13 children’s hospitals also won, 58 percent to 42 percent.

Under the measure, eight nonprofit children’s hospitals, including UCSF Benioff Children’s Hospital Oakland and Lucile Packard Children’s Hospital Stanford, would receive $135 million each. Five other University of California hospitals, including UCSF Benioff Children’s Hospital San Francisco, would get $54 million each.

Chronicle staff writer Sam Whiting contributed

to this report.