Proposition 1 would authorize the state to borrow up to $4 billion for affordable housing and home loans for veterans. The state would borrow the money in the form of bonds, which it would repay with interest from the state’s general fund, its main checking account.

The name of the measure—the Veterans and Affordable Housing Bond Act of 2018—is a bit misleading because only one-quarter of the money would go to help veterans. The majority of the bonds, about $3 billion, would be set aside for various types of housing programs.

One and one-half billion dollars would be designated for construction and rehabilitation of permanent and transitional rental housing and apartments for California households. Los Angeles residents who earn about $41,000 would qualify for occupancy.

One hundred-fifty million dollars would be earmarked for cities, counties, transit agencies, and developers to build higher density housing near transit stations.

One billion dollars would be earmarked for veterans participating in a home loan program. This portion of the bond money would be repaid by program participants who make monthly payments to the state.

Proposition 1 has won endorsements from major California newspapers. It also has the support of the League of Women Voters, California Association of Realtors, and Democratic state lawmakers.

Proposition 1 is opposed by the Howard Jarvis Taxpayers Association. Their concern is that Proposition 1 would add more debt to the states balance sheet.