Proposition 5 would provide an easier path for residents to approve GO bonds that fund infrastructure and housing investments critical to advancing local needs and priorities by reducing the two-thirds voter approval requirement to 55 percent. Economic & Planning Systems (EPS) quantified the net economic gains arising from a hypothetical $100 million GO bond measure approved under the provisions of Proposition 5, and found the likely benefits to be as follows:
● Production of 1,500 to 4,600 affordable and moderately priced housing units, depending on targeted affordability levels and location, by leveraging State and federal programs and/or private investment.
● A reduction in the average cost per housing unit produced by roughly $40,000 for 2,500 new units if used by communities to defray the costs of public infrastructure necessary to develop new housing
● A reduction of $6,000 to $14,000 in annual housing costs per household, resulting from lower rents, freeing up discretionary spending for those residents on other economic activities.
● The creation of 11,300 to 30,500 one-time jobs in residential construction and from economic ripple effects across a wide range of other sectors.
● The creation of additional housing opportunities in job rich, labor constrained locations which will enable on-going economic growth in these communities, including:
o 2,140 to 17,600 permanent jobs
o $241 million to $2.0 billion in economic output
o $138 million to $1.2 billion in value added (i.e., gross domestic product)
o $91 million to $760 million in labor income
● A net benefit from reduced greenhouse gas emissions and vehicle miles travelled of $2.5 million to $20.2 million per year.