ABAG, BAHFA leaders withdraw $20 billion housing bond measure from November ballot
Removed from all nine Bay Area counties after Contra Costa attorney opposed to measure filed lawsuit claiming ballot language was slanted, forced BAHFA to correct more than $240 million error
20 Billion Reasons opposition campaign responds
By Allen D. Payton
Bay Area Housing Finance Authority (BAHFA) Chair Alfredo Pedroza and Belia Ramos, president of the Association of Bay Area Governments (ABAG)’s Executive Board today, Wednesday, August 14, 2024, issued a joint statement following BAHFA’s decision this morning to remove a $20 billion general obligation bond measure for the production and preservation of affordable housing from the November 5 general election ballot in all nine Bay Area counties:
“The BAHFA Board’s decision to withdraw the affordable housing bond measure from this November’s ballot is not one that was taken lightly. The Bay Area’s housing affordability crisis has been decades in the making and is far too big for any one city or county to solve on its own. This is the reason the state Legislature established BAHFA. A robust source of funding for safe and affordable housing across our diverse, nine-county region is essential to the Bay Area’s economic and environmental health and to its residents’ quality of life.
The decision followed the action of a group of Bay Area residents, known as Opportunity Now, who opposed the $20 billion regional housing bond measure and filed a court challenge on Thursday, Aug. 8, 2024, to Regional Measure 4’s (RM4) 75-word ballot question claiming it was slanted.
Following is the press release from the group announcing the lawsuit, entitled “BAHFA blunders on ballot language for Bay Area tax measure” and “Gets busted for wildly lowballing cost to taxpayers”:
“Talk about misinformation. The discredited Bay Area Housing Finance Authority yesterday admitted that they’d misrepresented in ballot language the annual cost to taxpayers of the mammoth bond by (hold on) more than $240 million (you read that right) per year.
“The Bay Area Housing Finance Authority (BAHFA), a recently created regional agency, placed RM4 on the November 5 ballot. The unprecedented size of the bond measure has already drawn opposition.
The 20BillionReasons.com group helped pull together ballot arguments rebutting the claims for the measure. The lawsuit asserts that the ballot question is slanted to prejudice voters to vote in favor of the measure.
BAHFA conducted multiple polls to test various phrases in relation to the measure and picked the most popular ones. The lawsuit asserts that the ballot question contains a series of phrases that are not found in the language of the measure. The legal standard is that the ballot question must be an accurate synopsis.
Opponents’ Attorney Jason Bezis sent BAHFA a letter last Friday demanding a series of nine language changes to remove prejudicial language. Opponents assert that the true annual cost of the measure is nearly 36% higher than the amount shown in the ballot question.
The very name of the measure is deceptive: Bay Area Affordable Plan. This measure’s taxes will make the Bay Area even less affordable. In response, BAHFA held a special meeting of its Executive Committee this morning.
The lawsuit has already had success: The Committee adopted General Counsel Kathleen Kane’s recommendation “to correct the Ballot Question for Regional Measure 4 by deleting ‘$670,000,000’ from the Ballot Question and replacing it with ‘$910,976,423’.” No other changes to the ballot question were adopted today.
General Counsel Kane described this as a “mathematical error”. Plaintiff Marc Joffe retorted: “How can the public trust an agency that can’t do basic arithmetic with nearly $50 billion of its taxes? Ridiculous.”
“By law, Regional Measure 4 is coordinated by the Santa Clara County Registrar of Voters, so the Santa Clara County Superior Court is where this challenge was filed. The final language of the RM4 ballot question will now be determined by the court. See www.NoOnRM4.com for further information.”
“This public body, MTC in the form BAHFA, they finally acknowledged the public is not willing to support more taxes. It’s completely new to them. They’ve never recognized it before. They exist in this world in which the public is there to give them all the resources they want to monkey around with,” said David Schonbrunn, paralegal for the lawsuit said after the measure was removed from the ballot. “The worst part is MTC, when it comes to their transportation decision making, they have a dismal record on outcomes. Their outcomes are horrible. What I see them doing is it’s all about political deal making and it’s not about delivering solutions to the public.”
The BAHFA statement continued, “The BAHFA Board has always understood that it would be a steep climb to establish this source of funding. Recent developments have led the Board to conclude that the wise choice is to look ahead to another election season for a regional housing measure when there is more certainty and the voters have weighed in affirmatively on Proposition 5.
“In the meantime, BAHFA will continue to work on increasing the production of housing at all income levels, to preserve existing affordable housing, and to protect current residents from displacement. This includes maintaining, refining and expanding pilot programs such as the online Doorway Housing portal that makes it easier for prospective tenants to find and apply for affordable housing throughout the region and easier for developers and property managers to lease up their apartments; working to move thousands of planned housing units through the predevelopment pipeline; and implementing innovative programs to preserve affordable housing and prevent homelessness.
“BAHFA’s commitment to a regional approach toward solving the Bay Area’s housing affordability problems is stronger than ever. When the climb toward passage of a regional revenue measure resumes, the Board looks forward to teaming with every one of the Bay Area’s nine counties and 101 cities; and with the hundreds of other public, private and nonprofit partners who already have invested so much energy into this effort. Their work to prepare for a November bond measure, and the relationships built along the way, have laid a strong foundation for future success. Each step brings us closer to the summit.”
BAHFA is jointly governed by the ABAG’s Executive Board and by the BAHFA Board, which is comprised of the same membership as the Metropolitan Transportation Commission (MTC). BAHFA and MTC Chair Pedroza and ABAG Executive Board President Ramos both also serve as members of the Napa County Board of Supervisors.
20 Billion Reasons Campaign Responds
In response to the withdrawal of the measure from the ballot, the opposition campaign, 20 Billion Reasons, responded with their own statement on Wednesday, August 14, 2024:
“This morning, the Bay Area Housing Finance Authority (BAHFA) voted to pull Regional Measure 4, the $20 billion dollar regional bond measure, off the November ballot. Gus Mattammal, President of the 20 Billion Reasons campaign to defeat the bond measure in November, hailed the move.
Said Mattammal, “This decision is a win for Bay Area taxpayers, and a win for affordable housing. To address housing affordability in a meaningful way, we have to address root causes, not soak taxpayers for billions of dollars to pay bonds that would waste two thirds of their tax money on interest and overhead while barely making a dent in the issue.”
The 20 Billion Reasons campaign brought together Democrats, Republicans, Libertarians, and Independents in a single campaign, a rarity in recent times, but a necessity.
“Actually, working on the root causes of the housing crisis in California – a crisis created by our legislature and the corporate interests to which they are beholden – is politically difficult. It’s much easier to simply raise taxes,” said Mattammal. “That’s why it’s so important for voters to say ‘no’ to deeply flawed proposals such as Regional Measure 4: every time we do say no, it helps create the political conditions to work on the problem in a meaningful way.”
Though Regional Measure 4 is off the ballot for November, many other expensive proposals remain on that ballot. The $20 Billion Reasons campaign team is excited to regroup and consider the best way forward to help ensure that Bay Area taxpayers are getting real solutions for the taxes they pay and that they have a real voice in what is done with their tax money.”
John Goodwin, Assistant Director of Communications, Rebecca Long, Director, Legislation & Public Affairs, Metropolitan Transportation Commission contributed to this report.
the attachments to this post:
Oppty Now doesn’t add up graphic
Housing construction BAHFA
20 Billion Reasons campaign logo
