Proposition 37 | Official Voter Information Guide

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PROP
37

CREATES LOAN PROGRAM FOR MIDDLE-INCOME BUYERS OF QUALIFIED NEW HOMES. INITIATIVE STATUTE.

SUMMARY

Put on the Ballot by Petition Signatures

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. Supporters: United Nurses Associations of California; California Conference of Carpenters; California State Treasurer Fiona Ma Opponents: None submitted

WHAT YOUR VOTE MEANS

YES A YES vote on this measure means: The state would create a new homebuying assistance program. The state could sell up to $25 billion in revenue bonds to fund the program. Bonds would be paid back by homeowners’ payments on their home loans.

NO A NO vote on this measure means: The state would not be required to create a new homebuying assistance program.

ARGUMENTS

PRO Zero Taxpayer Cost—No Taxpayer Risk. Prop. 37 makes buying a home more affordable, keeping homeownership attainable for hardworking and middle-class Californians, with low-interest mortgages funded by private bond investors, NOT TAXPAYERS. Must be CA resident to qualify, meet income requirements, occupy home, make monthly payments, repay loan. Strict accountability/audits.

CON NO ARGUMENT AGAINST PROPOSITION 37 WAS SUBMITTED.