Multifamily and the Midterms: What Passed, What Didn’t
Some highly consequential measures were on the ballot.
A host of multifamily-related measures across the nation were put to a vote in the midterm elections on Nov. 3. From an $11.25 billion affordable preservation bond in California to cuts to Florida’s non homestead assessment cap, voters deliberated on some highly consequential city and statewide initiatives. Multi-Housing News is tracking some of the highest-profile measures, and how they could affect housing supply and affordability in their states.
California Propositions 1 and 37: passed
California voters have approved Proposition 1, which authorizes the state to sell $11.25 billion in bonds to fund affordable housing projects. The measure aims to provide up to 40,000 multifamily rental units and assist another 40,000 households, especially veterans, seniors, teachers and essential workers in buying a house.
“California voters enthusiastically passed Proposition 1 in this year’s midterm election,” Nicole Upano, assistant vice president of housing policy and regulatory affairs with the National Apartment Association, told Multi-Housing News.
“This initiative makes historic investments into preserving and expanding the state’s housing supply, including more than $1 billion specifically for veterans’ home loans and over $7 billion for affordable housing programs,” she said.
READ ALSO: Housing Is on the Ballot in California. Here’s What to Watch.
Proposition 1 is also known as the Veterans and Affordable Housing Bond Act of 2026. Its approval means that $10 billion will be pulled from general obligation bonds, which the state repays with tax revenue. Another $1.25 billion would fund Cal-Vet home loans for veterans, which will be paid back through veterans’ mortgage payments.
California voters also approved Proposition 37, a revenue bond that supporters say will make homeownership more accessible in the state. The measure is more experimental in nature than Proposition 1, allowing the state to borrow as much as $25 billion from private investors to lend to qualifying homebuyers to help cover their down payments, which is often a major obstacle to housing acquisition.
Rent control fails in Redwood City, Calif.
In Redwood City, Calif., rent control appears to be a bridge too far for voters, who rejected Measure E. The proposal would have put a cap on annual rent increases to a maximum of 5 percent for qualified units built before 1995.
“(It was) a misguided proposal that would have implemented local rent control, expanded eviction restrictions and added relocation payment requirements,” Upano said. “While intended to address affordability, these proposals would have only placed upward pressure on the cost of housing and exacerbated local supply challenges.”
In California, over 35 cities and counties have implemented long-term rent control ordinances, according to the California Apartment Association, which advocates against such measures. Also, since Jan. 1, 2020, the California Tenant Protection Act has extended rent caps and eviction restrictions to many properties not governed by local ordinances.
North Carolina HB 1089 and SB 1080 win voters’ approval
North Carolina voters approved two constitutional amendments on Tuesday that had been put on the ballot after approval by the state legislature, HB 1089 and SB 1080.
HB 1089, which was approved by roughly 60 percent of the state electorate, allows the legislature to put a statutory cap on property tax increases by local governments, though the amendment itself doesn’t specify how much. A future legislative session would work out the details.
A relatively low cap would benefit residential property owners, including multifamily housing, in a direct way. Critics of the measure warn that it might impair local services paid for with property tax revenue.
A more indirect impact on multifamily is possible with the approval of SB 1080, which caps the state income tax rate at 3.5 percent compared with the current 7 percent constitutional ceiling. The electorate approved the amendment by 62 percent in favor.
Levy caps, if handled appropriately, would give investors more clarity, or comfort, when investing in the market, Franklin Eruo, founding principal of Eruo Advisory, told MHN ahead of the election.
Amendment 3 passes in Florida
In Florida, Amendment 3 passed, with about 62 percent of voters approving the measure that amends the state constitution. That’s actually a close result, since amendments to the Florida constitution need to be approved by a minimum of 60 percent.
The amendment increases the homestead tax exemption—eventually to $250,000 in 2028, up from $50,000 currently—and decreases the cap on how much the assessed value of non-homestead properties can increase each year. Under the amendment, the cap has been reduced from 10 percent to 5 percent.
Economists predict that Amendment 3 would reduce local revenue by nearly $12 billion on a recurring basis, meaning that local governments would either cut services or raise revenue by other means, according to the Florida Policy Institute.
Hawaii approves RISE amendment
Voters in Hawaii have approved the RISE Amendment, which allows the state to issue Resilient Infrastructure for Shelter and Equity (RISE) bonds. The measure, which passed with about 64.5 percent of the vote, allows a form of tax increment financing to support infrastructure development. The bonds would be backed by revenue from increased property taxes within designated districts.
These kinds of bonds are not a new idea in Hawaii and were first approved by the state legislature in 1985. The state attorney general held, however, that a constitutional amendment was necessary before TIF bonds could be issued.
The measure will focus on facilitating more housing around transit hubs. It could benefit multifamily and other residential projects that are having trouble getting off the ground due to missing infrastructure, according to Alexei Morgado, founder of Lexawise.
One possible TIF district cited by Hawaii’s Office of Planning and Sustainable Development is Iwilei-Kapālama in Honolulu. Some 30,000 new residential properties are planned for the area, but there needs to be an estimated $667 million in infrastructure projects for drainage, electrical upgrades, sea level rise protection, roads, water, and wastewater. Growth of the area would eventually repay the RISE bonds, according to OPSD.
This is a developing story. Check back later for updates.
