California's $25B Bond Plan Eyes Middle-Class Homeownership Vote

SACRAMENTO — The California Secretary of State's office confirmed Tuesday that a ballot measure qualifying for the November 2026 general election after supporters submitted over 900,000 signatures, surpassing the required 546,651 valid signatures. Dubbed the California Middle Class Home Ownership and Family Home Construction Act of 2026, the initiative authorizes the California Housing Finance Agency (CalHFA) to issue up to $25 billion in revenue bonds for a second-mortgage program offering fixed-rate loans up to 17% of a qualified new home's purchase price. Homebuyers must contribute at least 3% down, reside in California for one year prior, occupy the home as their primary residence within 60 days of closing, and earn no more than 200% of the area median income for their family size in the purchase county.[1][2][4] Eligible properties are limited to new construction — including townhomes, condominiums, row houses, manufactured homes, or first sales of repurposed nonresidential buildings — priced below county-specific caps of $1 million to $1.5 million, adjusted annually based on federal home price indexes. Former state Senate Majority Leader and Assembly Speaker Bob Hertzberg, the measure's chief proponent and sponsor through the California Coalition for Homeownership, hailed the qualification as a step to 'unleash a wave of new home construction' and build about 190,000 middle-class homes. The campaign, funded by over $4.5 million primarily from the California Association of Realtors ($2.8 million) and carpenter unions, faces no registered opposition committees as of May 2026.[1][2][3] Bonds would be sold to investors, with CalHFA setting rates and terms to ensure repayment through homeowners' mortgage payments, sparing general taxpayers. Hertzberg emphasized the program's focus on supply: 'We need to increase supply' to combat California's housing crisis, where fewer than one in five households can afford homeownership. A qualified builder option incentivizes developers with higher labor standards and altered construction defect rules, administered by CalHFA within one year of voter approval if passed.[3][4][5][6] In counties like Los Angeles and San Francisco, where median home prices exceed $1 million, the measure targets middle-income families priced out of traditional markets amid chronic shortages. Proponents project it bridges the down payment gap — typically 20% in California — without subsidies that inflate costs, positioning the November 2026 ballot as a pivotal test for state-led affordability solutions.[1][5]