The Middle Class Homeownership and Family Home Construction Act of 2026 would create a down-payment assistance program for families earning up to 200% of an area’s median income — the midpoint of family incomes in a specific area — adjusted for household size. This assistance could only be used to buy newly constructed homes. The bond would be repaid through the mortgages of participating homebuyers.
Yes Argument
For many Californians, the biggest barrier to buying a home is the down payment. This measure is designed for the “missing middle” — working families who earn too much for most other down-payment assistance programs but still cannot save enough to buy a home. Proposition 37 reduces the required down payment to just 3%.
No Argument
Proposition 37 provides taxpayer-funded subsidies to developers without reforming costly mandates that make housing expensive. Worse, Proposition 37 makes the state of California one of the biggest mortgage lenders in America overnight — and taxpayers are left holding the bag.
Key Supporters
In Support
- Xavier Becerra, candidate for California governor
- California Association of Realtors
- California Teachers Association
- Veterans Affiliated Council
In Opposition
- Carl DeMaio, California Assembly member
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