California’s housing market has long felt like a "closed-door" policy for the middle class. However, a significant new initiative, the California Middle-Class Homeownership and Family Home Construction Act of 2026 (#25-0013), is aiming for the November 2026 ballot to change that narrative.

Proposed as a self-sustaining program with no cost to taxpayers, this initiative seeks to bridge the massive gap between renting and owning through a $25 billion revenue bond program. Here is how this landmark proposal could reshape the Golden State’s landscape for buyers, sellers, and the economy at large.

1. A Lifeline for Home Buyers and Sellers
The initiative targets the "missing middle"—families who earn too much for traditional low-income assistance but are priced out of the current market.

• For Buyers: The core of the Act is a second mortgage program administered by the California Housing Finance Agency (CalHFA).

  • Lower Entry Barriers: Borrowers only need a 3% down payment. The program provides a secondary loan covering up to 17% of the purchase price, effectively helping families reach a 20% equity stake immediately.

  • Inclusivity: It expands eligibility to those with "thin" credit files by requiring lenders to use cash flow underwriting (evaluating bank statements and rental history) if a traditional credit score falls short.

  • Affordability: Loans are required to be fixed-rate with no early payment penalties, protecting buyers from predatory lending.

• For Sellers (Builders): By stimulating demand specifically for newly constructed homes, the Act provides a guaranteed pool of qualified buyers. The "Qualified Builder Option" allows developers to certify their projects, making them more attractive to lenders and prospective homeowners.

2. Fueling the California Economy

This isn't just a social program; it's an economic engine. By authorizing $25 billion in revenue bonds, the initiative injects massive liquidity into the construction sector without dipping into the state’s general fund.

• Job Creation: The emphasis on "Family Home Construction" incentivizes the building of stand-alone homes, townhouses, and row houses. This creates a steady stream of high-paying construction jobs.

• Social Impact Investment: The program encourages "social impact investment" through low-interest bonds that qualify for Community Reinvestment Act (CRA) credit, bringing private banking capital back into local California neighborhoods.

• Market Stability: By increasing the supply of "Qualified New Homes"—including repurposed nonresidential buildings—the Act addresses the chronic inventory shortage that drives volatile price spikes.

3. Why REALTORS® Should Rally

For California REALTORS®, this initiative removes the two biggest hurdles to closing a sale: the down payment and inventory.

• Expanded Client Base: With income eligibility up to 200% of the Area Median Income (AMI), a vast majority of working California families suddenly become viable clients.

• Guaranteed Professional Involvement: In a win for the industry, the Act requires applicants to retain a licensed California real estate agent or broker to ensure consumer protection throughout the process.

• Streamlined Disputes: The "Right to Repair" provisions and limits on attorney contingency fees (capped at 30%) are designed to resolve construction disputes quickly through mediation or repair rather than years of stalled litigation, keeping the market moving.

The Politics: Who is Behind the Move?

The initiative is championed by Robert M. Hertzberg, a prominent figure in California politics and former Majority Leader of the State Senate.

The Strategy:

• The "No Taxpayer Cost" Angle: By using revenue bonds—where the loans are repaid by the homeowners, not the public—proponents are framing this as a fiscally responsible way to tackle the housing crisis.

• Labor Alignment: The Act includes robust labor enforcement standards, allowing joint labor-management committees to sue for violations like improper worker classification. This is a strategic move to gain support from organized labor.

• Legislative Flexibility: Uniquely, the Act allows the Legislature to amend the statute with a 60% vote to further its goals, ensuring the program can evolve without needing a new ballot measure every few years.

As the 2026 election approaches, expect this to be a centerpiece of the housing debate. It’s a bold attempt to prove that the California Dream of homeownership isn't dead—it just needs a better financing model.

The full text of the initiative can be read here.

For Carlos and Shannon, community service is not merely a side project or a corporate responsibility; it is the core of their business philosophy, rooted in the belief that a business should serve the people around it rather than just operating within them.

Carlos’s dedication to East County is seen through a wide range of impactful initiatives that address both immediate crises and long-term community needs. Together with his partner Shannon Harris, they have notably led the restoration of the Grossmont High School band trailer, ensuring local students have the resources necessary to pursue their musical talents. His commitment to environmental stewardship is equally impressive, spanning from organized East County cleanups to a convenient annual Christmas tree pickup service. Furthermore, his ongoing partnership as a trash sponsor for the Coldwell Banker West Foundation ensures that local charitable efforts remain clean, organized, and effective.

Beyond logistical support, Carlos has proven to be a pillar of strength during San Diego’s most challenging moments. Following the 2020 La Mesa riots, he stepped up to provide vital crisis response, helping the community navigate the path toward recovery and rebuilding. This spirit of care extends into his work with the Junk Medics Community Food Pantry, where he provides a consistent safety net for residents facing food insecurity. To Carlos and Shannon, these projects are deeply personal and serve as a way to give back to the community that helped shape his own journey. His tireless work serves as a powerful testament to the positive impact one individual can have on the well-being of an entire region.

Carlos "CJ" Granados

Shannon Harris

Learn more about the PSAR Good Neighbor Award and submit nominations HERE

Nada Benny exemplifies the spirit of advocacy by her deep-rooted commitment to East County and her passion for educational equity. For Nada, community service is a personal mission inspired by her own journey as an El Cajon Valley High School alumna. Living by the philosophy that “a rising tide lifts all boats,” she has dedicated herself to ensuring that the next generation of leaders has the support they need to succeed without the crushing burden of debt.

Eight years ago, Nada turned a personal promise into a reality by founding the Nada Benny Scholarship at El Cajon Valley High School. What began as a small initiative has flourished into a significant community pillar, having provided financial assistance to 52 sensational students to date. Nada’s motivation stems from a desire to see young people pursue higher education, whether to become doctors, lawyers, or engineers, without compromising their future financial stability or their ability to eventually achieve the dream of homeownership. She is also proud of her scholars who have gone to trade school route and have been doing excellently. By easing the weight of student loans, she is helping her scholars build a foundation for lifelong success.

Beyond the financial support, Nada’s advocacy is rooted in a deep admiration for the resilience of her scholarship recipients. Many of these students serve as translators for their parents or parental figures for their younger siblings, all while maintaining high academic standards and participating in extracurricular activities. Her heart for the community extends even further through her ongoing efforts to collect food and clothing for low-income families, addressing the immediate needs of East County residents. By showing up for her community in both grand gestures and quiet, consistent acts of service, Nada has inspired colleagues and friends to follow her lead, proving that one person’s commitment to "paying it forward" can create a lasting ripple effect of hope.

Learn more about the PSAR Good Neighbor Award and submit nominations HERE

Mike Anderson serves as a premier example of a decades-long track record of volunteerism that has woven him into the very fabric of the East County community. For Mike, volunteering isn't just an occasional commitment; it is a way of life. He operates on the principle that the most dedicated volunteers will always find a way to show up and help, regardless of how busy their professional lives may be.

Mike’s most visible impact can be seen through his 30-year tenure as the Chairman of Oktoberfest in El Cajon for the German American Societies of San Diego. Under his leadership, the event has grown into one of the largest and most beloved family-friendly traditions in East County, recently celebrating its 50th anniversary. Through Oktoberfest, Mike has fostered a long-standing partnership with St. Madeleine Sophie’s Center, providing them with financial support and a public platform to showcase their artists, while also personally volunteering his time to support their annual Artwalk event.

His influence is equally profound in the business and civic sectors of Lakeside. Having served nearly 30 years as a member, Director, and two-time President of the Lakeside Chamber of Commerce, he also serves on the San Diego County Assessment Appeals Board. Mike has been instrumental in organizing cornerstone community events like the Western Days Parade, the Spirit of Christmas, and Touch-a-Truck. His commitment to civic health also included four years as an elected member of the Lakeside Community Planning Group and extensive advocacy work within the REALTOR® community. Whether he is hosting monthly mixers to connect local business owners or volunteering at the Lakeside Optimist Club’s Bulls Only Rodeo, Mike’s 25-plus years of service represent a tireless investment in the people and prosperity of San Diego.

Learn more about the PSAR Good Neighbor Award and submit nominations HERE

Calling for Nominations!!!

Do you know a fantastic PSAR REALTOR^®, Broker/Office Manager, or Affiliate? Now is the time to give them the recognition they deserve.  Award Recipients will be announced at the REAL Awards on February 27th, 2026.

Nominations must be received by Monday, February 2nd, 5 pm.
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PSAR shall recognize a REALTOR^®, Broker, and Affiliate who fulfill the following criteria: 

REALTOR® of the Year award criteria

• Outstanding loyalty and devotion to the advancement and success of the Association and the Real Estate Profession through attendance at meetings and services on committees, either as a member or chairperson.
• Committee participation should be heavily weighted.
• Conduct of Candidates’ real estate business and practices, in the judgment of candidates’ colleagues, in the most ethical manner at all times, representing the professional image, and true spirit of REALTORS®.
• Promotion and practice of the Real Estate Code of Ethics and Standard of Practices.
• Participation in Association-sponsored activities.
• Participation in civic and community activities.
• Participation in CAR and NAR.
• The past recipient of the REALTOR® of the Year may be asked to present the award to the new recipient.
• The immediate President shall not be considered for the REALTOR® of the Year award.

Broker/ Office Manager of the Year award criteria

• Outstanding loyalty and devotion to the advancement of the Association and the Real Estate Profession.
• Must exemplify the REALTOR® image and have an enviable record of service to the real estate profession and to the association.
• Must demonstrate skill, expertise, and productivity in the role of a residential qualifying broker or manager, as well as a high rate of ethical conduct and professionalism.
• The past recipient of the Broker Manager of the Year award shall present the award to the new recipient.
• Special Recognition: The Board of Directors and or Executive Committee will also honor and recognize members who have demonstrated excellence in their commitment to the Association and/or the real estate profession.

Affiliate of the Year award criteria

• Outstanding loyalty and devotion to the advancement of the Association and the Real Estate Profession.
• Attendance at meetings and service on committees.
• Conduct of candidates’ real estate-related business and practices.
• Participation in Association-sponsored activities.
• Participation in civic and community activities.
• The past recipient of the Affiliate of the Year award shall present the award to the new recipient.

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PSAR's Mission is to empower Real Estate Professionals

Since 1928, the Pacific Southwest Association of REALTORS® has played a significant role in shaping the history, growth, and development of the Real Estate industry in San Diego County.

The California Department of Real Estate (DRE) recently released several critical updates that every REALTOR® should review to start the new year informed and protected. From annual performance data to urgent fraud warnings, here is what you need to know.

Fall 2025 bulletin highlights (Released December 19th)

The Fall 2025 Real Estate Bulletin provides a comprehensive look at the DRE's activities over the past fiscal year.

Notable statistics from the report include:

• Audit findings: The DRE closed 347 audits, uncovering trust fund shortages totaling more than $15 million. Property management activities accounted for 89% of these shortages.
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• Enforcement actions: The department received 5,542 complaints and referred 909 cases for legal action. During this period, the DRE revoked 206 licenses and suspended 78 others.
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• Licensing trends: The total license population now stands at 424,188, a slight 2% decrease from the previous year.
• Consumer recovery: The Consumer Recovery Account paid out $379,495 to victims of real estate fraud.

Read Bulletin Here

Urgent advisory: vacant land scams

On December 30, 2025, the DRE issued a serious warning regarding bad actors posing as owners of vacant land. These scammers target REALTORS® to help sell property they do not own, often using fake identification.

Red flags to watch for:

• Requests to list property significantly below market value.
• Requirements for "no sign" on the property. Strong preference for cash buyers and quick closings.
• Refusal to meet in person or via video call.
• Insistence on using a specific, outside notary.
• How to protect yourself and your members: Verify the owner's identity by requesting a recent tax or utility bill.
• Conduct independent online searches to find the owner's contact information and send listing documents to the address of record via certified mail.

Read the full advisory here

2026 Real Estate Law update

The 2026 edition of the Real Estate Law is now live on the DRE website. This update incorporates all legislative changes effective as of January 1, 2026. We encourage all members to download the latest version to ensure full compliance with new regulations, including those involving buyer-broker agreements and digital image disclosures.

Stay vigilant and continue to provide the professional service our community expects from a REALTOR®.

See the updated Real Estate Law Information Here

California Department of Real Estate Takes Disciplinary Action Against Lance McHarg and Real Estate Education Provider Real Estate Trainers, Inc.

CDAM Reset Period Changing From 90 Days To 30 Days

CRMLS will update the way Cumulative Days Active in MLS (CDAM) is calculated starting November 19. This change shortens the reset period from 90 days down to 30 days.

CDAM tracks the total time a property has been marketed in the MLS, even when the listing was temporarily off the market. It is different from Days Active in MLS (DAM), which only counts the days a listing is in Active status.

Under the old rule, if a listing was removed and relisted within 90 days, the CDAM continued from the previous listing for a period of 90 days. Beginning November 19, if a property is off the MLS for more than 30 days before being relisted, the CDAM will reset to zero. CDAM will also reset to zero any time a property changes ownership and is listed after that point.

All new listings entered into the MLS on or after November 19 will calculate CDAM at 30 days. CDAM for all existing listings will be adjusted to 30 days in the coming weeks, allowing each MLS system vendor time to implement the change. No action is required of you; however, you will notice a change in listing data accordingly.

CRMLS made this change to provide a clearer snapshot of current market conditions. With faster access to market data, a 30-day window now gives a more accurate picture of what is happening in real time.

The MLS will update automatically.

PSAR is proud to recognize 36 members who have been honored as Honorary Members for Life by both the Pacific Southwest Association of REALTORS® and the California Association of REALTORS® (C.A.R.).

These distinguished members have each demonstrated over 25 years of dedication, integrity, and professionalism in real estate and have reached the age of 75 or older.

The 36 members include:

Congratulations to our honored members for their long-term commitment to excellence and their outstanding service to clients and the community.

As part of this recognition, the 2025 group of new honorary members will receive a waiver of PSAR and C.A.R. dues beginning in 2026. This waiver will continue for as long as they remain eligible REALTOR® members or until retirement from the profession.

Members who believe they may qualify for this honor are encouraged to contact PSAR. Please ensure your correct birthdate is entered in your membership record. An accurate birthdate is the trigger used to identify future receipients.

Applications are available on the C.A.R.website and using THIS FORM

For additional information, send an email to hmfl@car.org.

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California’s Department of Real Estate (DRE) is urging consumers to stay alert for an increase in real estate and mortgage scams targeting homebuyers, homeowners, and investors across the state.

Criminals are using increasingly sophisticated tactics, including email hacks, forged deeds, and mortgage fraud, to exploit the complexity of real estate transactions and California’s high property values. Even honest individuals can unknowingly become involved in these crimes if they fail to recognize warning signs.

The DRE outlines nine of the most common scams and provides clear steps to help consumers protect themselves. Homebuyers and property owners are encouraged to verify credentials, stay cautious during transactions, and report suspicious activity immediately.

San Diego County residents can also take an extra step to safeguard their property. The County Assessor/Recorder/County Clerk provides a free Owner Alert program that notifies property owners of any changes to property records.  It is an effective way to detect potential deed or title fraud early. Learn more and register here: Owner Alert

Read the full article from the DRE to learn how to protect yourself and your clients: Link to California DRE article