**Proposition 37 would authorize the California Housing Finance Agency to issue up to $25 billion in revenue bonds for a second-mortgage program offering fixed-rate loans covering up to 17% of the purchase price for eligible middle-income buyers of qualified new homes.** The measure qualified for the November 3, 2026 ballot after collecting roughly 900,000 signatures, well above the required threshold, and faces no organized opposition in the official voter guide. Supporters, including labor groups and state officials, highlight that bonds would be repaid solely through borrower mortgage payments with no direct state or local costs, aiming to expand homeownership access in a high-cost market. Traders appear to view passage as more likely than not given the initiative’s focus on new construction, income eligibility up to 200% of area median, and the broader context of housing affordability pressures, though the outcome remains subject to voter turnout and any late developments in the final weeks before the election.