Ballot Proposals Impacting Real Estate Approved to Collect Signatures

​California Secretary of State Shirley N. Weber, Ph.D., announced that the proponents of a several initiatives are cleared to begin collecting petition signatures. The Attorney General prepares the legal title and summary after which the Attorney General forwards it to the proponent(s) and to the Secretary of State, and the initiative may be circulated for signatures.

1. HOMEOWNER INSURANCE POLICIES. Requires Insurance Commissioner to set wildfire safety standards for properties and insurers to offer homeowner insurance to properties that meet those standards. Insurers that do not offer insurance for such properties cannot sell automobile or home insurance in California for five years. Requires insurers to detail reasons for nonrenewal, specify repairs needed to obtain renewal, and allow more time for repairs. For homes destroyed by disaster, requires insurers to pay 100% of personal property coverage limit (up to $350,000) without requiring homeowner to submit an itemized claim.
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2. REPEAL OF VOTER-ENACTED CHANGES TO PROPERTY TAX RULES FOR TRANSFERS BETWEEN FAMILY MEMBERS. Reinstates property tax reassessment exemptions for certain real property transfers between family members (including by inheritance), which voters eliminated through Proposition 19 in 2020, reducing local property tax revenues and eliminating funding source for Proposition 19’s California Fire Response Fund. Allows transfers to children (or grandchildren if parents are deceased) without property tax reassessment of: (1) principal residence, regardless of its current value or continued use as principal residence; and (2) $1 million in other real property. Properties assessed under Proposition 19 may be reassessed under reinstated rules.
   
   
3. PROVIDES PERMANENT FUNDING FOR SCHOOLS AND HEALTHCARE BY EXTENDING EXISTING TAX ON HIGH INCOMES. Makes permanent the existing 2012 voter-approved tax rates for high-income Californians, currently set to expire in 2031. Rates apply to personal income over about $360,000 for single filers, $721,000 for joint filers, and $490,000 for heads of household (2024 levels; adjusted annually for inflation). Allocates tax revenues 89% to K-12 schools, 11% to community colleges.   
   
   
4. CREATES LOAN PROGRAM FOR MIDDLE-INCOME BUYERS OF QUALIFIED NEW HOMES. Authorizes up to $25 billion in bonds to offer eligible buyers fixed-rate mortgages for up to 17% of the purchase price of a “qualified new home” (new construction or first sale of converted nonresidential property, priced below about $1 million–$1.5 million, depending on county, adjusted annually). Borrowers must be California residents for one year, plan to occupy the home, earn less than 200% of area median income, and pay at least 3% down. Requires that bonds be repaid by homeowners’ mortgage payments, not State. 
   
   
5. REQUIRES UNIVERSITY OF CALIFORNIA TO PROVIDE DOWNPAYMENT HOME LOANS TO CERTAIN STAFF. The University of California (UC) currently offers home loans to faculty and managers. This measure requires UC to provide no-interest 20% downpayment loans to non-faculty, non-managerial staff who are first-time homeowners with five years’ experience working for UC. No monthly payments required; staff must repay loan—plus 20% of any increase in home’s value—when home is sold or refinanced. Requires 75% of loans be made available to staff with household incomes at or below area median income. Prohibits using taxpayer funds, tuition, or General Fund to fund loans. 
   
   
6. LIMITS ABILITY OF VOTERS TO RAISE REVENUES FOR LOCAL GOVERNMENT SERVICES. Limits voters’ ability to pass voter-proposed local special taxes by raising the vote approval threshold requirement for such ballot measures from a simple majority (over 50%) to two-thirds. In charter cities, prohibits voters from approving real estate transfer taxes that exceed the rate specified in Revenue and Taxation Code section 11911 (0.11%). Overturns all existing voter-approved property-related taxes that do not comply with these requirements two years after the measure is enacted.

​A full list of the initiatives can be found at https://www.sos.ca.gov/administration/news-releases-and-advisories/2025-news-releases-and-advisories/.