Proposition 37: Home buyer loansState-backed loans to help middle-income buyers of new homes
Read the full text of the measure: Official Voter Information Guide (PDF)
In plain words
The California Housing Finance Agency could borrow up to $25 billion from investors and use it to make loans that cover up to 17% of the price of a newly built home. Buyers must have lived in California for one year, put at least 3% down, live in the home, and earn less than twice the typical (median) income in their area. Homes must be new (or the first sale of a converted non-home building) and priced below about $1 million to $1.5 million, depending on the county. The bonds are paid back by the buyers' loan payments, not the state budget. Builders who meet higher labor standards get more flexible rules on construction-defect claims. (sos.ca.gov (Official Voter Information Guide) )
Before and after
| Question | Today | If it passes |
|---|---|---|
| State loans for part of a new home's price | Only CalHFA's existing, smaller down-payment programs | New loan for up to 17% of the price |
| Who can get one | Not applicable | California residents for 1 year buying a new home priced below about $1 million to $1.5 million (by county), income under 2x area median, at least 3% down |
| How it's paid for | Not applicable | Up to $25 billion in revenue bonds repaid by buyers |
| Cost to state budget | No added cost today. The cost at right is what this measure would add | No direct state or local cost (Legislative Analyst) |
Numbers from the official ballot title (ballot title ); also see (lao.ca.gov (Legislative Analyst's Office) )
Example
Illustration only: on an $800,000 new home, a buyer puts $24,000 down (3%), the new program lends up to $136,000 (17%), and a regular mortgage covers the rest. (sos.ca.gov (Official Voter Information Guide) )
Biggest change
- Creates a "middle-class homeownership loan" of up to 17% of a new home's price, funded by up to $25 billion in revenue bonds. source: lao.ca.gov (Legislative Analyst's Office)
- Developers can choose a "qualified builder option" with higher labor standards in return for more flexible construction-defect rules. source: lao.ca.gov (Legislative Analyst's Office)
Who it affects most: Middle-income first buyers of newly built homes and home builders.
Cost to the state: No direct state or local costs; the bonds are repaid by buyers' loan payments (Legislative Analyst).
Our plain-words summary. Every line points to its source.
What your vote means
The state housing agency can borrow up to $25 billion to lend buyers of new homes up to 17% of the price, repaid by the buyers.
No new state loan program for buyers of new homes is created.
Our one-line summary. The official "What your vote means" statements are in the Secretary of State's Official Voter Information Guide, linked below.
Why people want it, and why others object
Why this is on the ballot
Voters put this on the ballot by signing a petition. It changes a state law, which lawmakers can later change. It passes with a simple majority.
- A coalition of real estate interests and labor unions placed the initiative on the ballot. source: CalMatters
Why supporters want it
- Official argument in favor: "Zero Taxpayer Cost—No Taxpayer Risk"; supporters say it helps working families who can afford a mortgage but cannot save a large down payment, and will spur home building. Signed by Danny Curtin (California Conference of Carpenters), Fiona Ma (CalHFA board member and State Treasurer) and David West (California State Commanders Veterans Council). source: voterguide.sos.ca.gov (Secretary of State)
Why opponents object
- No argument against Proposition 37 was submitted for the official voter guide. source: voterguide.sos.ca.gov (Secretary of State)
- Opponents named by CalMatters (Reform California, League of Women Voters) say the state should not be in the mortgage market, the measure does not address why housing is expensive, and it pushes buyers into deeper debt. source: CalMatters
Who backs each side
- For: United Nurses Associations of California, California Conference of Carpenters, State Treasurer Fiona Ma, California Association of Realtors, SEIU, Xavier Becerra, California Democratic Party. Against: Reform California, League of Women Voters. source: CalMatters
- Money (Secretary of State, through Oct. 6, 2026): "Yes on 37, California Homeownership" reported $19,618,927. No opposing committee was identified. source: sos.ca.gov (Secretary of State)
In each side's own words where we could find them, quoted or summarized with a link to the source. We don't endorse either side.
What you will see on your ballot
Official ballot wording, word for word (tap to open)
The official ballot title, word for word from the Secretary of State's Official Voter Information Guide .
CREATES LOAN PROGRAM FOR MIDDLE-INCOME BUYERS OF QUALIFIED NEW HOMES. INITIATIVE STATUTE.
YES
NO
Official title copied word for word from the Official Voter Information Guide (page 40). The title and summary are prepared by the Attorney General.
Official summary by the Attorney General (tap to open)
Authorizes up to $25 billion in bonds to offer eligible buyers fixed-rate mortgages for up to 17% of the purchase price of a “qualified new home” (new construction or first sale of converted nonresidential property, priced below about $1 million–$1.5 million, depending on county, adjusted annually). Borrowers must be California residents for one year, occupy the home, earn less than twice the area’s median income, and pay at least 3% down. Requires that bonds be repaid by homeowners’ mortgage payments, not the State.(sos.ca.gov (Official Voter Information Guide) )
Latest news
Recent reporting from a range of outlets, newest first. We link to it; we don't endorse it.
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Full text of the measure
The full text of the proposed law is printed in the Official Voter Information Guide. Read it in the Official Voter Information Guide (PDF) .
Read more
- Secretary of State: Official Voter Information Guide, Nov. 3, 2026 (PDF)
- Official Voter Information Guide: Proposition 37
- Official arguments and rebuttals
- Legislative Analyst's analysis
We link to analysis from several sources; we don't endorse it.