Proposition 37: Creates Loan Program for Middle-Income Buyers of Qualified New Homes

Proposition 37 is an initiative statute on California’s November 3, 2026 ballot. It would authorize the California Housing Finance Agency (CalHFA) to issue up to $25 billion in revenue bonds to create a new homeownership assistance program for eligible middle-income Californians purchasing qualifying newly built homes. Eligible buyers could receive a second mortgage of up to 17% of the home’s purchase price. Buyers would have to contribute at least a 3% down payment, occupy the home as their primary residence, have lived in California for at least one year, and earn no more than 200% of the area median income. Qualifying homes generally would be newly constructed homes or certain converted nonresidential properties within specified price limits. The measure would also establish a voluntary Qualified Builder program. Participating builders would meet specified labor standards in exchange for different rules governing certain construction-defect claims. Arguments in favor: Supporters say Proposition 37 would help middle-income Californians who can afford monthly housing payments but have difficulty saving a large down payment. They say focusing the program on newly built homes could encourage additional housing construction. They also emphasize that the revenue bonds are designed to be repaid through participating homeowners’ mortgage payments rather than by taxpayers. Arguments against: No argument against Proposition 37 was submitted for the Official Voter Information Guide. The League of Women Voters of California Education Fund notes concerns raised by critics that the program could encourage development farther from existing communities and services, that low down payments could increase default risks, and that some changes to construction-defect rules could make it more difficult for homeowners to pursue claims against builders. The Legislative Analyst estimates no direct state or local government costs because the bonds and administrative costs are intended to be repaid through mortgage payments made by participating homeowners. A YES vote creates the new homebuyer assistance program and allows CalHFA to issue up to $25 billion in revenue bonds to fund it. A NO vote means the state would not be required to create the new homebuyer assistance program. For the complete nonpartisan Pros & Cons analysis from the League of Women Voters of California Education Fund: Proposition 37 — LWV California Education Fund Pros & Cons: https://cavotes.org/ballot-measure/20... For the official state voter guide: California Official Voter Information Guide — Proposition 37: https://voterguide.sos.ca.gov/proposi... More information: Donate to the League of Women Voters of Los Angeles County: https://www.paypal.com/ncp/payment/MB... League of Women Voters of Los Angeles County: https://lwvlacounty.org Los Angeles County Registrar-Recorder/County Clerk election information: https://www.lavote.gov/home/voting-el... Vote 411: https://www.vote411.org USE OF THIS VIDEO: This presentation was produced by the League of Women Voters of Los Angeles County for voter education. If reproduced, shared, embedded, or rebroadcast, the video must be presented in its entirety and may not be edited, excerpted, clipped, altered, or used in a manner that could misrepresent the content or the League’s presentation. Unauthorized use of excerpts or edited portions is not approved by the League of Women Voters of Los Angeles County. For permission requests, please contact the League directly.