Voters approve housing bond measures but reject easing lot-size and environmental rules

Voters in California, Hawaii and Rhode Island gave the go-ahead last week for bond measures aimed at boosting the housing supply and homeownership. But a California measure to cut back on the state’s decades-old environmental law to spur housing development and a Massachusetts proposal to loosen minimum lot-size rules both failed.

Massachusetts’ Question 7, a ballot measure that would have overridden local zoning rules and allowed single-family homes on smaller lots, suffered defeat at the ballot box by fewer than 33,000 votes or 1.2 percentage points. 

The proposal would have allowed single-family homes to be built on lots of 5,000 square feet or more if they had at least 50 feet of street frontage and access to public water and sewer services. Zoning policies for single-family homes currently are set by local governments, not the state, and many require lot sizes of 40,000 square feet or more.

In California, Proposition 45 to shorten and streamline the permitting and environmental review process for several types of projects, including housing, under the state’s 50-year-old environmental law fell with nearly 56% of voters in opposition.

But California voters approved two measures to allow the state to issue bonds intended to boost housing.

Voters to weigh different approaches to housing affordability in November

Proposition 1, to allow the state to sell $11.25 billion in general obligation bonds for housing, passed with roughly 61% of the vote. It will dedicate $10 billion for housing programs and $1.25 billion for veterans’ home loans. The Legislative Analyst’s Office says the bond would provide subsidies for up to 40,000 multifamily rental units.

Proposition 37, to authorize the state to issue up to $25 billion in bonds to create a down payment assistance program, passed with about 62% of the vote. Each loan would cover up to 17% of the home price. Qualified buyers are defined as those who have been a California resident for at least a year, plan to occupy the home, earn less than 200% of the area median income and can pay at least 3% down.

In Rhode Island, more than 61% of voters approved a $120 million bond to fund the construction and development of housing projects in the state. At least $25 million must go toward producing housing intended for homeownership, and up to $10 million may support public housing development.  

Hawaii voters by nearly 62% approved a new constitutional amendment allowing counties to use special bonds to pay for infrastructure such as roads, water and sewer systems in designated areas. Those bonds would be repaid through future growth in property tax revenue in those districts rather than through an increase in the property tax rate. 

Stateline reporter Robbie Sequeira can be reached at [email protected].