California Homeownership Loan Program and Single-Family Home Construction Initiative (2026)

California Homeownership Loan Program and Single-Family Home Construction Initiative
Election date November 3, 2026
Topic Housing assistance programs
Status Cleared for signature gathering
Type Initiated state statute	Origin Citizens

The California Homeownership Loan Program and Single-Family Home Construction Initiative (#25-0013) may appear on the ballot in California as an initiated state statute on November 3, 2026.

The initiative would establish a homeownership loan program for households with incomes that do not exceed 200% of the area median income for a family of the same size in the county that requires at least 3% of the purchase price of the qualified home for the downpayment. It would also authorize the California Housing Finance Agency to issue bonds not to exceed $25 billion to fund the program.

Measure design

See also: Text of measure

Click on the following sections for summaries of the different provisions of the ballot measure.

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Second mortgage homebuyer program

The initiative would establish a second mortgage homebuyer program for qualified homebuyers administered by California Housing Finance Agency (CalHFA). The criteria for a qualified homebuyer would include:

• California resident for one year prior to application;
• agreement to occupy the home as a primary residence within 60 days of closing;
• income at or below 200% of the area median income for a similar-sized family in the county or city where the qualified new home is located;
• down payment of no less than 3% of the purchase price of the qualified home.

The initiative would require homebuyers to retain a real estate agent or broker.

A qualified home would include newly constructed homes, townhomes, row houses, condominiums, or manufactured homes or a condominium or other residence in a nonresidential building repurposed for residential use where the borrower is the first purchaser. The maximum purchase price of a qualified home cannot exceed 125% of the conforming loan limit for a one-unit property in the county in which the qualified new home is located as determined by the Federal Housing Finance Agency in the annual conforming loan limit report.

The initiative would require CalHFA to establish the program within one year from the effective date of the initiative. Effective dates of ballot measures are five days after the secretary of state certifies the election results.

The initiative would also require the agency to establish a homeowner education requirement for homebuyers the agency determines may be benefited by it that can be completed prior to closing.

The initiative would also require an annual audit to review whether the bond proceeds are being used for the purposes of the initiative.

Lender regulations

The initiative would authorize CalHFA to contract with one or more lenders to operate the lending program. It would limit originating fees to not more than 0.5% of the purchase price or $290, whichever is greater. The initiative would prohibit lenders from charging early payment penalties and require the mortgages be fixed-rate loans.

If a buyer's credit score does not qualify them for the loan program, the initiative requires lenders to review voluntarily submitted financial records, including bank statements, pay stubs, verifiable personal assets, and rental payment history, and evaluate them according to cash flow underwriting in order to qualify the buyer for the program or secure better loan terms.

The initiative would authorize the agency to develop underwriting criteria for the loans, including loan limits, minimum credit scores or additional credit verification, and debt-to-income ratios.

California Housing Finance Agency revenue bond authorization

The initiative would authorize California Housing Finance Agency (CalHFA) to issue up to $25 billion in bonds to offer second mortgage loans to qualified buyers. This would be in addition to the bonds the agency issues for other housing assistance programs. The initiative would limit the second mortgage loans to 17% of a home’s sales price. Homebuyers would have to secure a first mortgage to cover any remaining costs of the qualified home. The initiative would require CalHFA to set interest and terms on the loans to account for the interest on the bonds and administrative costs of the program by CalHFA.

Qualified builder option

The initiative would establish a qualified builder option that housing developers may opt in to that would require higher labor and enforcement standards, including making the builder liable for labor violations committed by contractors or subcontractors. The option would also subject builders to different construction defect rules. The initiative would require housing developers to certify that participating construction meets the qualifying new home requirements established in the initiative. The agency would confirm builder participation by sending a letter within 30 days of receiving certification that builders can use for marketing, financing, and sales. Under the initiative, a joint labor-management cooperation committee would be able to sue builders for violations of improper worker classification, unemployment insurance taxes and payments, payroll and wage reporting, and employer state registration.

Right to repair

The initiative would establish right to repair procedures for participants in the loan program buying houses built by qualified builders. Homebuyers would first notify the builder of the nature and location of defects. If a homebuyer fails to do this, a court may grant a builder a stay and require the homebuyer to pay attorney fees if they fail to send the proper pretrial notification within 120 days of the stay. Prior to litigation, builders would be allowed to communicate directly with the homebuyers. Builders would be authorized to secure a release or waiver from the homeowner for the repair work if the homeowner is satisfied with the repairs.

Initiative amendment and competing measures

The initiative waives the statutory requirement that changes to ballot initiatives must be approved by voters. It would instead allow the legislature to alter the initiative, as long as it maintains the intended purposes of the initiative, via a law passed by 60% of state legislators and signed by the governor. The initiative also contains a competing measures provision that would require this initiative to prevail in its entirety if it is approved and receives more votes than any other competing ballot measure authorizing revenue bonds to fund middle class housing loans.

Text of measure

Ballot title

The ballot title is as follows:

“

Creates loan program for middle-income buyers or qualified new homes. Initiative statute.

”

Petition summary

The summary provided for inclusion on signature petition sheets is as follows:

“

Authorizes up to $25 billion in bonds to offer eligible buyers fixed-rate mortgages for up to 17% of the purchase price of a 'qualified new home' (new construction or first sale of converted nonresidential property, priced below about $1 million–$1.5 million, depending on county, adjusted annually). Borrowers must be California residents for one year, plan to occupy the home, earn less than 200% of area median income, and pay at least 3% down. Requires that bonds be repaid by homeowners’ mortgage payments, not State.

”

Full text

The full text of the initiative can be read here.

Support

California Coalition for Homeownership led the campaign in support of the initiative.

Supporters

Former Officials

• Former Senate Majority Leader and Assembly Speaker Robert Hertzberg (D)

Arguments

• Former California Senate Majority Leader and Assembly Speaker Robert Hertzberg (D), sponsor of the initiative: "I wanted to create something that would support the building of, and therefore supply, more middle-class housing. We need to increase supply. Because these subsidy programs, most of them, just end up increasing the cost of housing. You wind up buying your grandma’s house with bad pipes and a leaky roof, and then you’re stuck with all those expenses. The subsidies raise prices, but they don’t add supply. And lately, everything has been focused on affordable rental housing. This is about ownership. Because, as I always say, home is where the wealth is."

Opposition

Ballotpedia has not located a campaign in opposition to the ballot measure. You can share campaign information or arguments, along with source links for this information, with us at editor@ballotpedia.org.

Background

California Housing Finance Agency (CalHFA)

The California Housing Finance Agency (CalHFA) was established with the passage of Zenovich-Moscone-Chacon Housing and Home Finance Act in 1975. CalHFA is a self-supported state agency, meaning it does not receive taxpayer dollars for operational costs. Its projects are funded through allocations by the state legislature and the issuance of revenue bonds. It administers financing, such as first-time homebuyer downpayment assistance, for single-family home buyers and multi-family rental assistance programs.

Housing statistics in California

The U.S. Census Bureau reported that the homeownership rate in California, the proportion of households that are owner-occupied, was 55.3% as of January 1, 2024. The peak of homeownership in California between 1984 and 2024 was 2006, with 60.2%. The chart below shows homeownership rates in California from 1984 to 2024.

The Construction Industry Research Board reported housing permit data for California from 2005 to 2022. The chart below shows permit data by type (single and multi-family) and by year.

Revenue bonds

Revenue bonds are not backed by the taxing power of the issuing authority and are instead paid back through earnings from the specific project for which they were issued. As such, revenue bonds are not considered public debt. This means that, in general, revenue bonds do not have to go before voters as ballot propositions.

Path to the ballot

See also: Laws governing the initiative process in California

An initiated state statute is a citizen-initiated ballot measure that amends state statute. There are 21 states that allow citizens to initiate state statutes, including 14 that provide for direct initiatives and nine (9) that provide for indirect initiatives (two provide for both). An indirect initiated state statute goes to the legislature after a successful signature drive. The legislatures in these states have the option of approving the initiative itself, rather than the initiative appearing on the ballot.

In California, the number of signatures required for an initiated state statute is equal to 5% of the votes cast in the last gubernatorial election. A simple majority vote is required for voter approval. The requirements to get initiated state statutes certified for the 2026 ballot:

• Signatures: 546,651 valid signatures are required.
• Deadline: The deadline for signature verification is June 25, 2026. However, the secretary of state suggested deadlines for turning in signatures of January 12, 2026, for initiatives needing a full check of signatures and April 17, 2026, for initiatives needing a random sample of signatures verified.

Initiative #25-0013

• August 15, 2025: Robert M. Hertzberg filed the initiative with the California Attorney General's Office.
• October 22, 2025: The initiative was cleared for signature gathering.
• November 18, 2025: The secretary of state reported that the campaign had collected 25% of the number of signatures required.

See also

2026 ballot measures

View other measures certified for the 2026 ballot across the U.S. and in California.

• 2026 ballot measures
• California 2026 ballot measures
• California elections, 2026

California ballot measures

Explore California's ballot measure history, including citizen-initiated ballot measures.

• List of California ballot measures
• Housing assistance programs ballot measures
• California State Legislature

Initiative process

Understand how measures are placed on the ballot and the rules that apply.

• Laws governing the initiative process in California
• Initiated state statute
• California Constitution

External links

• Full Text

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