California Proposition 37 would authorize the state Housing Finance Agency to issue up to $25 billion in self-repaying revenue bonds for second mortgages covering as much as 17 percent of the purchase price on newly constructed homes, targeting buyers earning up to 200 percent of area median income who provide at least a 3 percent down payment. The measure, placed on the November 3, 2026 ballot through an initiative petition led by former legislator Robert Hertzberg and backed by real estate and labor groups, carries no direct state or local fiscal cost since bond repayment relies on borrower mortgage payments. Recent voter guides and endorsements highlight its focus on middle-income homeownership amid high housing costs, with limited organized opposition filed and early polling showing modest majority support. Trader pricing at 57.5 percent Yes reflects this coalition backing and the absence of major counter-campaigns one month before the election, though passage remains sensitive to turnout patterns among homeowners versus renters.