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Press Release: California Democratic Party Endorses Proposition 37

SACRAMENTO –The Yes on Proposition 37 campaign to build new housing and make home loans affordable for middle-class Californians today announced that the California Democratic Party has endorsed the measure.

“California’s Democrats recognize that Proposition 37 is a rocket booster for the middle class and our economy – making homeownership possible for more hardworking families and sparking new housing construction across the state,” said the measure’s chief proponent, former California Assembly Speaker and Senate Majority Leader Bob Hertzberg. “We’re proud to have the Democratic Party’s support and look forward to continuing to grow our broad, bipartisan coalition.”

Today’s vote came during the California Democratic Party’s Summer Executive Board Meeting in San Diego.

Proposition 37’s supporters include: California Democratic Candidate for Governor Xavier Becerra, honorary campaign co-chairs California State Controller Malia M. Cohen, California State Treasurer Fiona Ma, United Brotherhood of Carpenters and Joiners of America General President Doug McCarron, former Senate President pro Tempore and Mayor of Sacramento Darrell Steinberg, and CALIFORNIA ASSOCIATION OF REALTORS® President Tamara Suminski, and many others. 

This measure unlocks homeownership for more middle-class families by making it possible to buy a new home with just 3% down, while spurring a wave of new home construction across the state – all at no cost to taxpayers. Specifically, Proposition 37:

  • Authorizes $25 billion in revenue bonds to provide low-interest down payment assistance loans to eligible middle-class Californians.
  • Protects taxpayers by requiring bonds to be repaid by investors and home loan borrowers.
  • Helps address California’s housing affordability crisis by incentivizing new single-family home construction and increasing the supply of brand-new homes.
  • Helps drive construction of roughly 190,000 new homes, generating significant economic benefits throughout the state.
 

To qualify for these home loans, homebuyers must be California residents, meet minimum income requirements, pay at least 3% down, make monthly payments, and occupy the home as their residence. Consumer protections include fixed low-interest rates on home loans, with strict limits on bank fees and no penalty for early payoff of home loans.

Last month, the campaign launched a new “Down Payment Savings Calculator,” which provides an easy to navigate, county-by-county breakdown of how much, on average, homebuyers can save under Proposition 37. Statewide, based on the median home price of $800,000, Californians can expect to pay $160,000 – or 20% – upfront. Under this measure, eligible homebuyers would pay just $24,000 – or 3% down – an upfront cost savings of $136,000 for the same home. The tool also shows that in Sacramento County homebuyers would save $95,300; Fresno County: $71,063; Los Angeles County: $150,149; Riverside County: $103,829; and San Diego County: $157,853.

For more information on Proposition 37, visit: voteyeson37.com.