California voters face Proposition 37 on the November 2026 ballot, an initiated statute authorizing the California Housing Finance Agency to issue up to $25 billion in revenue bonds for a second-mortgage down payment assistance program targeting middle-income households. The measure, which qualified after strong signature gathering in 2026 and was advanced by former legislative leader Bob Hertzberg, limits eligibility to state residents earning at or below 200 percent of area median income who commit to primary residence and at least 3 percent down payment on qualified new construction or converted properties. Bonds would be repaid through borrower mortgage payments with no direct state or local taxpayer costs, according to the Legislative Analyst’s Office. Trader consensus around a narrow yes lean reflects broad ongoing concern over housing affordability and new construction incentives, alongside competing legislative housing bond proposals and typical uncertainty around voter reception for large-scale bond-financed initiatives.