Buying a home in the South Bay takes serious financial planning, especially when your down payment is only part of the money you'll need at closing. California's November 2026 election brought two housing measures that could expand homebuyer assistance, creating new questions for people searching in Torrance, Redondo Beach, and Hermosa Beach.
Propositions 1 and 37 address different financing needs, and the type of home you purchase could determine which programs apply. After helping hundreds of buyers throughout the South Bay, I know how valuable it is to understand your options early. Here's what these measures could mean for your home search, who could qualify, and how to prepare before the new programs become available.
California's Housing Vote: What Propositions 1 and 37 Change
California voters supported both propositions in the November 3, 2026 election, with the Associated Press calling each measure approved. Final statewide certification remains pending, and the new funding programs still require implementation.
The two measures address different areas of housing assistance:
Proposition 1: Authorizes $11.25 billion in bonds for affordable housing, homeownership assistance, veteran mortgages, and related programs.
Proposition 37: Authorizes up to $25 billion in revenue bonds for loans that help qualifying buyers purchase newly built homes.
For South Bay buyers, understanding the difference can help narrow down which financing options are worth exploring. Both measures establish funding frameworks, with application procedures and individual program availability determined separately.
Proposition 37: Could It Help With a South Bay Down Payment?
Proposition 37 creates a homebuyer financing program administered by the California Housing Finance Agency, or CalHFA. The program would provide fixed-rate loans covering up to 17% of the purchase price of qualifying newly built homes, with borrowers contributing at least 3% as a down payment.
These loans must be repaid through monthly payments, so comparing the full financing costs will be essential. The final interest rates, participating lenders, and availability will depend on CalHFA's implementation.
Who Could Qualify?
The official measure establishes several requirements:
Residency: At least one year living in California.
Income: Household income below twice the area's median income.
Down payment: At least 3% of the purchase price.
Occupancy: The home must become your primary residence.
Property type: Qualifying new construction or the first sale of an eligible converted nonresidential property.
Purchase price: Below the applicable county-specific limit, generally ranging from approximately $1 million to $1.5 million, with annual adjustments.
These requirements come from the official Proposition 37 summary. The exact Los Angeles County price limit and additional lending requirements should be confirmed before planning a purchase around this program.
Which South Bay Homes Could Actually Qualify?
Torrance, Redondo Beach, and Hermosa Beach offer very different housing options, and Proposition 37's new-construction requirement deserves attention when comparing them.
Torrance: Compare New Construction With Established Homes
Torrance offers a mix of single-family homes, townhomes, and condominiums across neighborhoods such as Old Torrance, West Torrance, and North Torrance. Buyers should confirm the construction status and purchase price of any property they're considering for Proposition 37 financing.
A recently renovated home can have modern finishes while remaining classified as a resale property. I recommend reviewing the property's ownership and construction history with your agent and lender before assuming it qualifies.
Redondo Beach: Pay Attention to Property Type
Redondo Beach includes established single-family neighborhoods, condominiums, and newer townhome developments, particularly in North Redondo. Properties in South Redondo often offer a different combination of coastal access, lot characteristics, and housing styles.
For buyers exploring newer townhomes, confirming whether the property qualifies as new construction should happen early. HOA dues, insurance, and other ownership expenses also belong in the monthly budget.
Hermosa Beach: Check the Purchase-Price Limit First
Hermosa Beach has a compact coastal housing market with beach cottages, townhomes, and luxury residences near The Strand and surrounding neighborhoods.
Some properties will exceed Proposition 37's purchase-price limits, making the exact Los Angeles County threshold an important early check. I can help you compare homes within your budget while a participating lender confirms whether the financing program applies.
Proposition 1: Another Source of Potential Homebuying Assistance
Proposition 1 authorizes $11.25 billion in housing-related bonds, including $1.1 billion for homeownership and down payment assistance and $1.25 billion for California veteran mortgages. Additional funding supports affordable rental housing, preservation, infrastructure, and other housing programs.
For South Bay buyers, the homeownership funding is the part worth following most closely. Specific assistance amounts, income limits, and application periods will depend on how the funding is distributed through individual programs.
What About Existing Homes and Veteran Buyers?
Proposition 1's broader funding structure could support eligible buyers through programs with different property requirements. The official legislative analysis describes assistance for first-time buyers and financing for qualifying veterans.
The state already offers mortgage and down payment assistance through CalHFA, while eligible veterans can explore the CalVet Home Loan Program. I recommend reviewing these existing programs while waiting for additional details about the newly authorized funding.
Five Steps to Prepare Before Applying for Homebuyer Assistance
The new financing opportunities are worth monitoring, and there are useful steps you can take right now. Getting a clear picture of your finances and property requirements will help you approach lenders with better questions.
Review your income and residency. Compare your household circumstances with the program's published requirements.
Get pre-approved with an experienced lender. Discuss credit, existing debts, available savings, and estimated monthly payments.
Confirm the property type. Identify whether your preferred homes are new construction, eligible conversions, or traditional resales.
Calculate your complete purchase expenses. Include your down payment, closing costs, insurance, property taxes, and HOA dues where applicable.
Check current program availability. Review CalHFA announcements and ask participating lenders about application timelines and loan requirements.
CalHFA works with approved lenders to originate its homebuyer loans. You can use the agency's approved lender directory to identify lenders familiar with its existing programs.
I've also outlined the financing and preparation process in my first-time homebuyer guide for Torrance. Understanding your purchasing power before touring homes gives you a much clearer starting point.
Don't Let a Financing Program Choose Your Home for You
Homebuyer assistance can influence your purchasing options, but the property itself still deserves careful evaluation. Location, condition, layout, maintenance expenses, and long-term suitability should guide your search alongside financing eligibility.
I've helped buyers throughout Torrance, Redondo Beach, and Hermosa Beach compare properties with very different ownership costs and neighborhood characteristics. My approach is to help you understand what you're purchasing, how the home fits your plans, and where its asking price stands relative to comparable properties.
California Propositions 1 and 37 introduce potential assistance worth exploring, and understanding their limitations can help you make better financial decisions.
Ready to start comparing South Bay homes and financing possibilities? Contact me, and let's talk about your budget, preferred neighborhoods, and the next steps toward finding the right property.
FAQs About California Propositions 1 and 37
Can I use Proposition 37 to buy a resale home in Torrance?
Ordinary resale properties generally do not qualify. Proposition 37 focuses on newly constructed homes and eligible converted properties being sold for the first time.
Does Proposition 37 cover the entire down payment?
The program allows loans of up to 17% of a qualifying home's purchase price, while requiring buyers to contribute at least 3% down. Actual financing and repayment terms depend on program implementation.
Does Proposition 1 offer assistance for first-time buyers?
Yes. Proposition 1 includes funding for homeownership assistance, including programs serving eligible first-time buyers. Individual program requirements and funding availability must be confirmed with the administering agencies.
When can South Bay buyers apply for these programs?
Application timelines depend on the state agencies administering the funding and the participating lenders. Buyers can review currently available programs and updates through CalHFA.
About Dennis Hartley
Dennis Hartley is a top-performing South Bay REALTOR® with more than 920 lifetime home transactions and extensive experience helping buyers and sellers throughout Torrance, Redondo Beach, Hermosa Beach, and surrounding communities. I've helped more than 1,000 families navigate important real estate decisions, bringing decades of local knowledge to property searches, pricing, negotiations, and the buying process.
With 77 five-star Google reviews and 57 five-star Zillow reviews, I take pride in providing clear advice and personal attention throughout every transaction. My goal is to help you understand your options, compare properties with confidence, and find a home that fits your budget and the South Bay lifestyle you're looking for.
