California Voters Decide on Key State Propositions

The recent California election has brought significant changes that align with the commercial real estate industry's interests.  

What You Need to Know

California voters have spoken, and the results of several propositions directly affect property owners and managers across the state. Below is a summary of the results: 

• Proposition 2: Bonds for Public School and College Facilities
  Result: YES
  Proposition 2, which authorizes bonds to fund public school and college facilities, has passed with over 58% approval. This measure will enable infrastructure development, contributing to the economic growth of California and enhancing the competitiveness of our state.  

• Proposition 3: Constitutional Right to Marriage
  Result: YES
  This proposition, which establishes a constitutional right to marriage, has passed with overwhelming support.  

• Proposition 4: Bonds for Water, Wildfire, and Climate Risks
  Result: YES
  Proposition 4, which authorizes bonds to address water shortages, wildfire management, and climate risks, has passed with nearly 59% of the vote. This funding can help offset recent budget cuts and support climate resiliency projects. 

• Proposition 5: Bonds for Affordable Housing and Infrastructure
  Result: NO
  Proposition 5 was generally opposed by the CRE industry. It sought to lower voting thresholds to 55% for certain bonds but was rejected by over 55% of voters. It threatened taxpayer protections under Proposition 13 and risked leading to higher taxes. 

• Proposition 6: Eliminates Forced Inmate Labor
  Result: NO
  This measure, which proposed to eliminate forced inmate labor, was rejected by 54% of voters. While this issue does not have a direct impact on real estate, the outcome may influence broader labor policy discussions in California. 

• Proposition 32: Raises Minimum Wage to $18/hr
  Result: NO
  Proposition 32, which proposed raising the minimum wage to $18/hour, is currently being rejected by 51% of voters. A higher minimum wage could strain California businesses by driving up operating costs. 

• Proposition 33: Local Government Residential Rent Control
  Result: NO
  Proposition 33, which aimed to repeal the Costa-Hawkins Rental Housing Act and allow cities to impose rent control on properties built after 1995, was rejected by 61% of voters. This outcome is a win for property owners, as it preserves protections against rent control in many parts of California. 

• Proposition 34: Restricts Healthcare Foundation Political Spending
  Result: YES
  Proposition 34, which seeks to restrict political spending by healthcare foundations, is currently passing with 51% of the vote. This measure aims to protect public funds by ensuring they are used for healthcare purposes rather than political agendas. It ensures public tax dollars allocated for patient care are used directly for patients. 

• Proposition 35: Provides Permanent Funding for Medi-Cal
  Result: YES
  With 67% of the vote, this measure will impose a permanent tax on managed health care plans to fund Medi-Cal and prevent fund reallocations. 

• Proposition 36: Increased Sentencing for Certain Drug and Theft Crimes
  Result: YES
  Proposition 36, which increases penalties for certain drug and theft crimes, has passed with 69% approval. Endorsed previously by our BOMA/GLA Board of Directors, this measure is a significant win for property owners and managers. This measure will strengthen penalties for retail theft and organized crime, contributing to safer commercial properties and neighborhoods. 

Looking Forward

These election results generally favor a more stable business environment for property managers in Greater Los Angeles.  

The increased focus on combating retail theft and drug-related crimes may lead to safer commercial areas, potentially increasing property values and tenant satisfaction. 

However, it's important to stay informed about the implementation of these new laws and adjust your management strategies accordingly. 

Stay connected with BOMA on the Frontline for more news impacting members.