Prop. 37 explained: $25 billion for middle-income home loans
The initiative would help first-time buyers of newly built homes with small down payments.
SAN JOSE - Proposition 37 is a citizen initiative that would create a state loan program to help middle-income Californians buy newly built homes. It would let the California Housing Finance Agency (CalHFA) sell up to $25 billion in revenue bonds. Unlike general obligation bonds, revenue bonds are repaid from the loans themselves, not from state taxes.
What it would do
According to the Legislative Analyst's Office (LAO), buyers could put as little as 3% down and get a second, state-backed loan covering up to 17% of the price. Buyers must have lived in California for one year, live in the home and earn less than twice the area's median income. Homes would have to be newly built and priced below about $1.5 million, and the program is for the first buyer only.
The measure also creates a "qualified builder" option. Builders who meet certain labor standards would follow different rules for construction-defect claims, which are lawsuits over building problems.
Who would be affected
Middle-income first-time buyers, home builders and construction workers would be most affected. Income limits are tied to each area's median income, so they would be higher in high-income areas such as Santa Clara County.
What it would cost
The LAO estimates no direct state or local government costs, because borrowers repay the bonds.
Supporters and why
Supporters include the United Nurses Associations of California, the California Conference of Carpenters and state Treasurer Fiona Ma. They say a 20% down payment on a median-priced home of more than $930,000 means saving over $186,000.
"Proposition 37 gives working and middle-class Californians a fair shot at homeownership." - Argument in favor of Prop. 37
Opponents and why
No argument against Prop. 37 was submitted, and the Secretary of State lists no opposition committee.
Where the parties stand
The California Democratic Party recommends yes. The California Republican Party lists itself as neutral. PPIC found 80% of Democrats and 54% of independents in support; Republicans were divided, 47% yes and 51% no.
The money
The largest listed Yes contributions include $6 million from Building a Better California, $5 million plus several $1 million and $500,000 checks from the California Realtors' IMPAC committee, and $2 million and $1.25 million from the National Association of Realtors. No contributions to a No committee were listed.
Polling
In a Public Policy Institute of California (PPIC) survey of 1,086 likely voters taken Oct. 16-22 (margin of error plus or minus 3.8 points), 65% said yes and 32% no, up from 61% yes in September.
What your vote means
A yes vote means the state could sell up to $25 billion in bonds for low-down-payment loans on new homes. A no vote means it could not.
Source: Secretary of State, Voter Information Guide, Prop. 37; Legislative Analyst analysis, Prop. 37; Official arguments and rebuttals, Prop. 37; Secretary of State Quick Guide to Props, Prop. 37; California Democratic Party endorsements; California Republican Party endorsements; PPIC Statewide Survey, October 2026