Contest 6 of 14
Ballot order #6
Proposition 37
Creates Loan Program for Middle-Income Buyers of Qualified New Homes. Initiative Statute.
Fiscal Impact
No direct state or local costs (LAO estimate)
Short Term
State spends
State raises
No direct state or local costs.
Long Term
State spends
State raises
No direct state or local costs — homebuyers' payments repay the loans.
Social Impact
- The program offers eligible buyers fixed-rate mortgages for up to 17% of the price of a qualified new home priced below about $1 million-$1.5 million, depending on county.
- Borrowers must have lived in California for one year, occupy the home, earn less than twice the area median income, and pay at least 3% down.
- The LAO says the up to $25 billion in bonds would be repaid by homeowners' mortgage payments, with no direct state or local costs.
- Supporters say the loans will give teachers, nurses, veterans, and firefighters who can afford monthly payments a route to buying newly built homes.
A YES vote means:
The state starts a loan program for middle-income buyers of newly built homes, funded by up to $25 billion in bonds that the homebuyers repay through their mortgages, with no direct cost to the state.
A NO vote means:
The state does not start this homebuyer loan program.
No argument against this measure was submitted to the official voter guide.
Cost (Legislative Analyst): No direct state or local costs.
Source: CA Secretary of State, Official Voter Information Guide