Proposition 37
Create low-cost mortgages for homebuyers
California’s Housing Finance Agency would be able (but not required) to borrow up to $25 billion to help would-be homebuyers purchase newly constructed houses and condos. These loans could provide up to 17% of a home’s purchase price, leaving buyers with a cash down payment of 3% if paired with a typical mortgage — $24,000 for an $800,000 home. Homebuyers would repay the loan in monthly installments to private lenders. Anyone earning up to twice the area’s median income would be eligible. Private lenders, not taxpayers, would be on the hook if homebuyers default. It was placed on the ballot by a coalition of real estate interests and labor unions.
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Summary
Support
House hunters can expect to face a down payment equal to 20% of the value of a home. In California, where $700,000 for a fixer-upper is considered a steal in much of the state, that’s not feasible for most people. This loan program will put the dream of homeownership within reach of the middle class without costing taxpayers a dime.
Oppose
Some opponents argue that state government should not be involved in the mortgage lending market and note that the measure won’t do much to address the underlying reasons that housing in California is so expensive. Others note that while it would help more people buy homes, it would only do so by allowing them to go into even deeper debt.
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Campaign finance
Proposition committees raise money to support or oppose propositions. Outside groups can also raise and spend money independently to influence outcomes.
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Proposition committees
These committees are primarily formed to campaign for or against a proposition. They must identify contributors who give $100 or more, or loan a committee money. There are no limits on how much contributors can give or loan. Contributors who had their loans repaid or forgiven are still included. We exclude contributors who gave less than $100 in total. Contributors who made loans as part or all of their total are identified with an asterisk (*).
For funding by industry, we used existing sources, traditional machine learning and large language models to help categorize contributors who gave $5,000 or more in total, with CalMatters journalists reviewing the results. We also categorized the donors of political action committees that contributed to a campaign and used the results to calculate which industries should be applied. Major donors include individuals who self-identified as retired, self-employed, unemployed, a homemaker or a student.
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Outside spending
Separate from proposition committees, outside groups can pay for ads, mailers and other efforts to influence voters. They can’t coordinate that spending with proposition committees. There is no limit on how much they can spend.
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Video
Ballot text
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.
Source: California Secretary of State
