California Proposition 37 would authorize the California Housing Finance Agency to issue up to $25 billion in revenue bonds for a second-mortgage down payment assistance program targeting buyers with household incomes at or below 200% of area median income who put at least 3% down themselves. The program would apply only to new homes or converted nonresidential units, with loans capped at 17% of purchase price. The near-even split at 50.5% for passage reflects competing pressures between California's persistent housing affordability challenges—driven by high prices, interest rates, and limited inventory—and concerns over the scale of new state-backed debt, repayment structures tied to bond markets, and whether the measure would meaningfully boost supply or simply subsidize demand for middle-income households. Supporters, including real estate and construction groups, highlight expanded access to ownership; critics, including some Republican lawmakers, emphasize fiscal limits and eligibility breadth. Upcoming campaign activity, economic data on home prices and construction starts, endorsements, or polling shifts before the November 3, 2026, vote could alter the balance.