Prop 37: Creates Middle-Income Homebuyer Program

Bay Curious

This episode of Bay Curious explores Proposition 37, a California ballot measure proposing a $25 billion bond to assist middle-income reside

Key takeaways

Proposition 37 aims to help Californians earning up to 200% of the Area Median Income (AMI) afford homes.
The program is specifically restricted to newly constructed homes to incentivize the construction industry.

Main topics

Proposition 37 mechanics
California homeownership rates

Notable quotes

This bond is trying to do two things. Help middle class homebuyers buy homes and also jumpstart the housing construction industry.

Conclusion

The episode provides a balanced breakdown of the economic promises and

Transcript preview

Speaker 2 (0:01) From KQED. Speaker 7 (0:03) A reporter receives a shocking tip about something that happened inside a woman's prison. He starts asking questions, and what she uncovers is far bigger than one disturbing event. A deeply entrenched system, the people it protects, and the women who risk everything to challenge it from the inside. Snap Studios and KQED present We Are Jane Doe, a three-part investigative series. Listen on Snap Judgment wherever you get your podcasts. Speaker 1 (0:33) The firehose of news from America can feel like a lot these days. Speaker 8 (0:38) If you're trying to figure out what to make of it all, we got you. Speaker 1 (0:41) I'm Katie Simpson. And Speaker 8 (0:43) I'm Paul Hunter. We're correspondents here in Washington. Speaker 1 (0:46) Working just around the corner from where much of the action is taking place. Speaker 8 (0:50) Two blocks from the White House. Speaker 1 (0:52) And that's the name of our podcast. Speaker 8 (0:53) For top-notch analysis of U.S. politics from a Canadian perspective. Find Two Blocks in the White House every Wednesday, wherever you get your podcasts. Speaker 1 (1:02) Including YouTube. Speaker 4 (1:04) We are in uncharted territory. Speaker 6 (1:07) Staff Speaker 4 (1:07) writer Speaker 6 (1:08) Evan Speaker 4 (1:08) Osnos on The New Yorker Radio Hour. I think all of us right now are trying to make sense of an avalanche of news every day. And there aren't very many places where you can go and understand how something looks in the grand scope of history and context. That's what I come to The New Yorker for. Speaker 6 (1:24) I'm David Remnick, and each week, my colleagues and I try to make sense of what's happening in this chaotic world. And I hope you'll join us for The New Yorker Radio Hour. Speaker 2 (1:34) For would-be homebuyers in California, there are a seemingly endless number of hurdles to jump over. But perhaps the biggest one for most people is saving for the down payment. When homes cost as much as they do in California, coming up with that initial chunk of cash, oh, it hurts. Speaker 5 (1:53) It's pretty standard to put down 20 % of the cost of a home for a down payment. And if you can't? you may be required to get mortgage insurance, which is just one more extra fee. Speaker 5 (2:09) The median cost of a single-family home in California is $980,000. That means you'll need $200,000 for a down payment. Speaker 2 (2:21) And of course, most homes here in the Bay Area where we're recording cost way, way more. It's this Speaker 5 (2:27) issue that the proponents of Proposition 37 set out to tackle. Here's how the measure reads on your ballot. Proposition 37. creates a loan program for middle-income buyers of qualified new homes. I'm Erika Cruz-Gavara, host of The Bay. And Speaker 2 (2:45) I'm Olivia Allen-Brice, host of Bay Curious. Today, we continue on with PropFest, breaking down each of the 14 initiatives on the statewide ballot. Speaker 5 (2:53) You heard that right. 14. Direct democracy, Speaker 2 (2:57) baby. Here we go. Speaker 2 (3:02) Today, we're going through Proposition 37, a $25 billion bond to fund a program to help moderate-income Californians buy homes. Here to walk us through it is KQED's housing reporter, Aditi Banlamudi. Welcome, Aditi. Hey, Olivia. I'm ready to talk bonds. Let's do it. Let's start big picture on this one. What's the context for Prop 37 and why is it on our ballot? Speaker 3 (3:25) Yeah, California has one of the lowest rates of homeownership compared to other states. The national average is 66 percent, but California's is 10 percent lower. It's like. 56 percent. That's largely because the homes here are so expensive. More than half of Californians don't own a home until they're in their late 40s. And for a lot of people, the down payment is the sticking point. They could make a mortgage, but they don't have enough savings to get into the