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California Initiative 25-0018A1 University of California Downpayment Home Loan Program

What This Initiative Would Change

This measure would change the California Constitution to require the University of California (UC) to offer no-interest downpayment home loans to certain UC staff. California DOJ Attorney General

Real-life example: A UC employee who has worked there for five years could get help buying their first home without monthly payments, as long as they meet the rules. California DOJ Attorney General

Who Gets the Loans

The initiative would require UC to offer these loans to:

The loans are designed to help workers who normally don’t get UC’s current housing benefits. California DOJ Attorney General

Loan Rules in Plain Words

  • UC must help pay 20% of a home’s price as a downpayment

  • The loans are no-interest

  • No monthly payments are required

  • Staff must pay back:

    • the original loan

    • plus 20% of the home’s increased value when selling or refinancing

  • At least 75% of loans go to households earning at or below the area median income (typical middle income for the area) California DOJ Attorney General

Real-life example: If a staff member gets a $100,000 loan and the house increases in value by $50,000, they pay back the loan plus $10,000 (20% of $50,000) when they sell. California DOJ Attorney General

What Money Can’t Be Used

This aims to keep it from increasing taxes or tuition for students. California DOJ Attorney General

Cost and Budget Impact

  • Estimated cost to UC: around $30 million per year in the first few years

  • Costs likely fall over time as loans are repaid

  • This doesn’t directly increase state taxes but uses UC resources California DOJ Attorney General

Why this matters: It could affect UC’s housing budget and operations. California DOJ Attorney General

Why Supporters Like It

  • Helps UC staff afford housing in expensive California markets

  • Targets long-term workers who don’t currently get homeownership help

  • Makes UC staff more likely to stay and grow roots locally

Why Critics Raise Concerns

  • It could shift UC’s internal funds toward housing loans

  • Some worry about how it affects UC’s overall budget

  • The long-term financial effects depend on housing markets

Current Status

  • Title and summary prepared by the California Attorney General

  • Petition now circulating to gather voter signatures

  • If enough valid signatures are turned in, it could appear on the November 2026 ballot California DOJ Attorney General

Official Source