California ballot measure · November 3, 2026

California Proposition 37, explained

State loan program for buyers of new homes. A ballot measure is a yes-or-no question put directly to voters — no candidate is involved, and the wording on the ballot is the wording that becomes law. This page shows that wording first, then what it actually changes.

The official wording

CREATES LOAN PROGRAM FOR MIDDLE-INCOME BUYERS OF QUALIFIED NEW HOMES. INITIATIVE STATUTE. Authorizes $25 billion in bonds to offer eligible buyers fixed-rate mortgages for up to 17% of purchase price of a newly constructed home priced below about $1.5 million. Borrowers must be California residents, occupy the home, meet income limits, and pay at least 3% down. Bonds repaid by mortgage payments, not State. Fiscal Impact: No direct state or local costs.

This is what appears on the ballot. Everything below explains it.

What it actually means

Lets the California Housing Finance Agency sell up to $25 billion in revenue bonds and lend the money to buyers of newly built homes, covering up to 17% of the price as a second loan. The loans would be repaid by the homeowners, not the state's General Fund.

If you vote YES

CalHFA could sell up to $25 billion in revenue bonds, deciding how much and when, to fund "middle-class homeownership loans" of up to 17% of a home's price.
Buyers would need one year of California residency, household income no more than twice the area median, at least 3% down, and to live in the home; the home must be newly built or a first sale of converted non-residential property, priced under county limits of about $1 million to $1.5 million.
Homeowners' payments would repay the bonds and the program's administrative costs.
Developers who choose a "qualified builder option" with higher labour standards would be subject to different construction-defect rules that generally give builders more flexibility.

If you vote NO

No new loan program would be created; CalHFA's existing down payment assistance programs would continue under their current terms.
Existing construction-defect rules would continue to apply to all builders.

The numbers that matter

Maximum bond authority: Up to $25 billion (revenue bonds)
Direct state or local cost: None
Loan size: Up to 17% of purchase price, with at least 3% down

Why supporters say YES

With the median home price above $930,000, a 20% down payment can mean saving more than $186,000; the program helps working families who can afford monthly payments buy new homes, funded by private bond investors rather than taxpayers.
— Official argument in favor, signed by the California Conference of Carpenters, CalHFA board member and State Treasurer Fiona Ma, and the California State Commanders Veterans Council
Most subsidy programs raise prices without adding supply; tying the loans to newly built homes is meant to increase the number of middle-class homes built.
— Former Senate Majority Leader Robert Hertzberg, the initiative's sponsor

Why opponents say NO

Buyers would repay the second loan each month on top of a first mortgage, property taxes and insurance, and voters would not know the interest rate, loan term or monthly payment before approving the program.
— League of Women Voters of California
The measure subsidises developers without changing the costly mandates that make housing expensive, and would make the state a very large mortgage lender with taxpayers exposed to losses.
— Reform California

What’s genuinely uncertain

No argument against Proposition 37 was submitted for the official voter guide. The opposing views above were recorded by Ballotpedia; no organised No campaign committee was identified.
The Legislative Analyst says the program's reach is unknown: it depends on investor demand for the bonds, how the loans' cost compares with other assistance, and whether the program actually increases construction.
The Legislative Analyst finds no direct state cost; whether the state would bear any cost if borrowers default at high rates is not addressed in the fiscal summary.

The bottom line

Help with the down payment on new homes at no direct state cost, against buyers taking on a second loan whose terms are not yet known.

One neutral sentence describing the tradeoff — not a recommendation.

Sources:vig.cdn.sos.ca.gov ballotpedia.org

Checking it against the official text

The California Secretary of State publishes the certified measures and, in most states, an official voter guide with fiscal notes. That is the authoritative version. Everything here is an explanation of it, not a substitute for it.

Confirm this with the official source

Your ballot is determined by your election authority, not by us. Verify your registration, precinct, and sample ballot at California Secretary of State.

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