Californians Approve Housing Bonds to Fund Homeownership and Construction
Photo: KQED News — Bay Area tag
Californians approved Proposition 37, generating a $25 billion fund via revenue bonds to assist middle-income homebuyers with down payments, while early returns showed voters also supporting Proposition 1 to generate $11.25 billion for affordable housing construction. The measures aim to ease housing affordability challenges by funding down payment assistance for middle-class families purchasing newly built homes and directing capital toward multifamily housing development and veteran loan programs.
Read the full story at KQED News — Bay Area tagWhy It Matters
Voters authorized billions in state-backed borrowing that will shape the residential housing market, finance up to tens of thousands of new rental and ownership units, and introduce repayment obligations for program participants and taxpayers over decades.
Key Facts
- Voters approved Proposition 37, generating a $25 billion one-time fund to assist middle-income homeowners with down payments by selling revenue bonds.
- Proposition 37 passed with nearly 61% of the vote according to Associated Press projections in early returns.
- Proposition 1 led with just over 59% of the vote on Tuesday evening, generating $11.25 billion for affordable housing.
- Proposition 37 creates a down payment assistance program restricted to middle-class families earning up to double the area's median income, adjusted for household size.
- Proposition 37 assistance applies exclusively to newly built homes.
- Because Proposition 37 uses revenue bonds, it will be repaid by program participants rather than impacting general taxpayers.
- Proposition 1 earmarks $10 billion in general obligation bonds to be repaid over 25 years towards affordable housing construction.
- Proposition 1 allocates about $5 billion to the Multifamily Housing Program and $1.25 billion to the CalVet Home Loan program.
- The Legislative Analyst’s Office reported that Proposition 1 bond funds would support up to 40,000 rental units and help about 40,000 families buy a home.
- Public Policy Institute of California polling previously showed 60% support for Proposition 1 and 65% support for Proposition 37.
- An Enterprise Community Partners March report found nearly 40,000 shovel-ready homes needing funding to bridge financing gaps.
- The California Housing Finance Agency is tasked with creating the down payment assistance program for Proposition 37.