Local election results send a clear message: housing and the environment are priorities for voters across the country in diverse political climates. In this post, we delve into the key affordable housing, residential displacement, and climate resiliency measures that were passed in state, county, and local elections.
If you are a renter or homeowner, odds are that you have felt the strain of the housing supply crisis. Whether through an increase in your annual property taxes, or continuing rent hikes, housing—especially housing in places with easy access to jobs, transportation, and social opportunities—is becoming less and less affordable.
This year’s election cycle had housing at the forefront of national and local campaigns, with voters across the aisle looking for policy action to help bring housing costs back into reach for low and moderate income households. Local governments across the country introduced measures to increase funding for affordable and workforce housing development, and adjust property taxes to help mitigate residential displacement.
Here is a brief recap highlighting the key housing issues voters came out to support in this year’s local elections:
Secure funding for affordable housing
Many voters across the country cast their ballots in support of increasing public funding for affordable housing development. A few mechanisms included establishing a sales tax or property tax to fund local housing initiatives, creating an affordable housing trust fund, and permitting city and state governments to issue public housing bonds to secure financing for low-income housing development projects. The following are a few local examples of these measures being enacted:
Housing sales/property tax
Los Angeles County, CA voted in favor of Measure A, introducing a 0.5% increase in the county sales tax to fund housing and homelessness initiatives (estimated to raise $1 billion annually). Funding will support affordable housing development, as well as wraparound mental health and social services for community members. Allocating funding for these supportive services allows local governments to take a proactive approach to homelessness in addition to increasing affordable housing supply by providing upstream care to individuals facing complex mental and physical health challenges.
Pitkin County, CO voted in favor of Question 1A to establish a new property tax. This will provide $8.5 million annually to support affordable and workforce housing development, with the goal of attracting and retaining essential workers. This funding stream has been approved for the next 25 years. The longevity of this fund will provide local planners with an opportunity to pursue both short-term shovel ready projects as well as longer-term phased initiatives in line with the county’s Comprehensive Plan.
Aspen, CO voted to extend existing affordable housing taxes, via Issue 2A, which extends a 1% real estate transfer tax and 0.45% sales tax to fund affordable housing and transportation projects, and Issue 2B which extends the 0.45% sales tax to fund affordable housing and child care (from now until 2050). Providing funding to meet multiple community needs ensures that the city’s workforce will have access to quality housing stock, public transportation options, and affordable childcare, creating a supportive environment for workers to live in close proximity to their jobs.
Affordable housing trust fund
San Francisco, CA voted to establish a new affordable housing fund via Proposition G, which allocates $8.25 million in rental subsidies to support extremely low-income housing developments serving families, seniors, and persons with disabilities. In a market with historically some of the highest rental prices in the country, this subsidy will increase housing stability for extremely low-income residents who are competing for a scarce number of rental units affordable to 35% area median income households.
New Orleans, LA voted via the Parishwide Home Rule Charter Amendment Measure to establish an affordable housing trust fund, with a minimum annual contribution of 2% of the city’s general fund dedicated to this initiative. New Orleans is seeing a decrease in their low-cost housing stock and low production rates of new affordable housing. This fund will provide a dedicated financial source to push affordable housing preservation and development projects forward.
Public housing bonds
Bernalillo County, NM voted to approve the Public Housing Bond Measure, allowing the county to issue $1.7 million in bonds to support the rehabilitation and maintenance of public housing. Work will specifically support units serving low-income families, seniors, persons with disabilities, and persons who have experienced homelessness. With an aging affordable housing stock and an increasing senior population, these funds will allow for the county to acquire, rehabilitate, and improve affordable housing units to meet the needs of its shifting demographics.
Charlotte, NC voted in support of the Housing Bond Measure, permitting the city to issue $100 million in bonds to support low to moderate income housing development projects. These bonds allow the city to provide grant incentives to developers to ensure that new housing stock being delivered is affordable, takes into account the existing community context, and promotes neighborhood sustainability.
Support anti-displacement via property taxes
With increasing demand, property taxes continue to rise in neighborhoods with historically low property values. This shift can place a cost burden on longstanding residents who cannot afford to pay higher tax rates. As a result, property tax increases can lead to resident displacement. In several states, voters showed up in support of limiting property taxes relative to inflation rates and expanding property tax exemptions for historically disadvantaged populations. Passed measures include:
New Mexico voters approved Constitutional Amendment 2, which increased the amount of property tax exemptions veterans can claim (from $4,000 up to $10,000). This exemption rate will be adjusted annually to account for inflation.
Wyoming voters supported the Property Tax on Residential Property and Owner-Occupied Primary Residences Amendment, which allows owner-occupied primary residences to be taxed at a lower rate versus other real estate classes. With vacation communities such as Jackson Hole seeing an astounding increase in the cost of housing, many residents are being pushed out of the local housing market and forced to move further away from their jobs and families to afford a place to live. This measure will incentivize owners to utilize properties as their primary residence, encouraging housing to be used by local residents.
Support for climate resilience and adaptation measures
Housing was not the only issue to be featured prominently in local elections. With record-breaking heat waves, widespread flooding and hurricane devastation, and an increase in wildfire risks across the country, communities across the nation are on the front lines of climate change. Climate resilience and adaptation measures were featured on multiple state ballots this year, with several locales voting in favor of establishing new funding streams to take a proactive approach to local climate risks. These include:
California voters approved Proposition 4, which authorizes the state to borrow $10 billion via the establishment of a climate bond to advance wildfire mitigation, flood protection, clean water infrastructure development, and extreme heat investments. 40% of the funding will be allocated to projects supporting historically disadvantaged communities. The measure directly responds to the extreme weather events seen across the state annually.
Honolulu, Hawaii voters approved Question 1 to create a Climate Resiliency Fund. The fund will be supported by a 0.5% allocation from the city’s property tax revenue (estimated $8.5 million annually), to advance climate resiliency plans outlined in the O’ahu Resilience Strategy. The goal is to create a long-term pipeline of funding to support climate adaptation and resiliency work state-wide.
What does this mean for local decision-makers? Constituents are looking for governments to be proactive in addressing pressing local needs, including housing supply, housing affordability, and climate resiliency. These are issues that voters are prioritizing in locations across the country, and in an array of different political contexts. In the wake of shifting national priorities and potential shifts in funding allocations, securing state, county, and local financing vehicles to continue this work will be critical.
Smart Growth America is excited to see these local efforts and will continue to support initiatives that spur housing development while also working to increase the supply of well-connected, high opportunity locations, to ensure people can work, live, and thrive, no matter where they call home.