Proposition 37
CREATES LOAN PROGRAM FOR MIDDLE-INCOME BUYERS OF QUALIFIED NEW HOMES. INITIATIVE STATUTE.
Authorizes $25 billion in bonds to offer eligible buyers fixed-rate mortgages for up to 17% of purchase price of a newly constructed home priced below about $1.5 million. Borrowers must be California residents, occupy the home, meet income limits, and pay at least 3% down. Bonds repaid by mortgage payments, not State. Fiscal Impact: No direct state or local costs.
Criteria:
- Intent of bond and amount of the bond.
2. The annual cost should be clearly stated in $ per $100,000 of assessed value of a property, or dollars or percentages.
3. Duration of the bond and total estimated cost to repay the bond including interest.
4. Is there another similar bond already in place? If so, that bond information should be included.
5. What is the money specifically being spent on?
**** Extraneous language unrelated to the matter which could be considered as deceptive to the voter ( -1 point).
Score: 2.9
Comments: The score was lowered from the maximum of five because of unclear financial impacts. Mortgages are subject to default and bonds are subject to the vagaries of the bond market. No future potential costs to the state are mentioned.
