Voters in California have rejected Proposition 45. The ballot measure sought to noticeably accelerate environmental reviews for housing, infrastructure and other development projects, according to projections reported by the Associated Press following the vote count.
The initiative was supported by the California Chamber of Commerce and leading developers. The aim of the proposal was to expedite construction projects by introducing tighter deadlines for environmental reviews and legal challenges under the California Environmental Quality Act. Critics argued that the amendments would dilute environmental standards, restrict public participation and encourage suburban sprawl. Certain groups also viewed the proposal as an instrument to facilitate the construction of further data centres in the state.
Billions in aid for affordable housing and home ownership
At the same time, California citizens voted by a majority of 60.9 per cent to 39.1 per cent in favour of Proposition 1. This releases $11.25 billion in general obligation bonds to finance the construction of affordable housing, refurbishments and home acquisitions. Ten billion dollars of this will flow directly into housing programmes, including multi-family rental developments, whilst $1.25 billion is ring-fenced for property loans for veterans.
State analysts estimate that these bonds will support around 40,000 rental units and assist a further 40,000 households with purchasing a home. Alongside subsidised housing, the package includes financial resources for sheltered accommodation, student housing and low-income buyers.
Comprehensive funding and special provisions for Los Angeles
Proposition 37 was also approved, authorising revenue bonds of up to $25 billion. This programme is intended to provide equity assistance to middle-class buyers purchasing newly built homes. Eligible applicants include households with an income of up to twice the regional median income, adjusted for household size. Unlike Proposition 1, this undertaking is funded through borrower repayments and does not place a burden on the state general fund.
In total, voters approved bonds with an aggregate volume of $36.25 billion to combat the housing crisis, while preserving established environmental review procedures. In Los Angeles, local Measure TE also passed the vote. It grants a one-off exemption from the city transfer tax under Measure ULA, commonly known as the mansion tax, for properties damaged or destroyed by the fire in the Pacific Palisades in January 2025.
