Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Supervisor Noelia Corzo, District 2
Subject: Study Session on Article 34 and its impacts on Housing in San Mateo County
RECOMMENDATION:
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Study Session: Article 34 and its impacts on housing in San Mateo County.
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BACKGROUND:
A. Article 34
Article XXXIV of the California Constitution (“Article 34”), adopted by California voters in 1950 with 50.78% of the vote, imposes a voter approval requirement for certain affordable housing projects, unless an exception applies. Article 34 provides that no “low-rent housing project” shall be “developed, constructed, or acquired” by any “state public body” without first putting the project to a vote of the qualified electorate.
Article 34 was placed on the ballot in 1950 by the California Real Estate Association (now known as the California Association of Realtors or C.A.R.). In 2022, C.A.R. explicitly apologized for its role in passing Article 34 and for the discriminatory impact Article 34 has had. By requiring a public vote before any low-rent housing project could proceed, Article 34 gave wealthy, white communities a formal mechanism to block racially integrated housing without explicitly invoking race. Despite this history and its present-day impact, Article 34 remains intact and is the only state constitutional amendment of its kind in the United States.
Over the decades since Article 34’s adoption, the State Legislature has enacted a series of statutory exemptions that have narrowed its reach. As a result, many affordable housing projects developed in California today proceed without an Article 34 vote. Nonetheless, Article 34 has a continued impact in hindering public agencies-including those in San Mateo County-from adequately addressing housing needs.
B. Ballot Measures Authorizing Affordable Housing Unit Banks
In response, numerous public agencies have sought and received voter approval authorizing a maximum number of low-income housing units to be developed, acquired, or constructed within their jurisdictions. These elections authorize an Article 34 “bank” of housing units that a state public body can draw from when developing affordable housing projects.
For example, in 2022, voters in South San Francisco approved a measure allowing the city to develop, construct, or acquire low-rent housing units, up to 1% of the total number of existing housing units in the city annually, for eight years, with any unused units carrying over. In the past few years, several counties have held similar Article 34 elections, including Alameda (2016), Humboldt (2020), and Sacramento (2022).
San Mateo County does not currently have a countywide Article 34 housing unit bank.
C. Prior Board Discussion on a Proposed Article 34 Ballot Measure
In 2024, the Board of Supervisors considered whether to place an Article 34 “bank” measure on the November 5, 2024 General Presidential Election ballot. At a July 22, 2024 special meeting, the County Executive presented a draft measure that, if approved by voters, would have authorized local public agencies within San Mateo County to develop, construct, or acquire low-income housing projects in an amount up to 1% of the total number of housing units in the County annually, with unused units carrying over into subsequent years.
During that meeting, the Board directed staff to solicit input from the 20 incorporated cities and towns in the County. At a subsequent August 7, 2024 special meeting, the Board received a staff report summarizing outreach to cities and the results of a voter survey conducted by Godbe Research, which found 56.9% support among likely voters after hearing opposing arguments. Due to feedback from multiple cities and a desire for additional outreach, the Board ultimately did not vote to place the measure on the November 2024 ballot.
DISCUSSION:
This study session will explore Article 34, its impacts in San Mateo County, and tools to address affordable housing, including allowing cities, the County, and eligible agencies to acquire existing housing and to build and own affordable housing.
Specifically, the study session will explore the potential of placing an Article 34 bank on the November 3, 2026 ballot to increase opportunities for cities and other public agencies in San Mateo County to build, preserve, and acquire affordable housing. In January 2026, Godbe Research conducted a survey of likely San Mateo County voters on behalf of the County to gauge support for a potential ballot measure that would authorize an Article 34 unit bank in the unincorporated area and cities in San Mateo County.
During this study session, the Board of Supervisors will hear presentations from County and agency staff on the impact that an Article 34 bank measure could have, if passed, and how it would be implemented. Additionally, the Board will receive a presentation on polling results.
COMMUNITY IMPACT:
The cost of living in San Mateo County continues to outpace wages, leaving working families and seniors with fewer options for stable, affordable housing and forcing longtime residents-disproportionately residents of color-into homelessness. Article 34 prevents local public agencies from deploying the full range of tools available to build, acquire, and preserve the affordable homes that keep longtime residents in their communities. A study session will help inform the community and guide the Board in identifying solutions.