California Governor Newsom Announces Settlement with City of Norwalk Over Unlawful Homeless Shelter Ban

Strategic Insights -

The State of California has reached a settlement with the City of Norwalk over its unlawful ban on new homeless shelters and supportive housing. As part of the agreement, Norwalk will repeal its ban, create a trust fund for affordable housing, and undergo state monitoring to ensure compliance with state law. This settlement continues Governor Newsom's efforts to address homelessness throughout California by holding local governments accountable and ensuring they plan for and permit their fair share of housing.

Key Takeaways:

  • The City of Norwalk has agreed to repeal its unlawful ban on new homeless shelters and supportive housing.
  • Norwalk will create a housing trust fund for the development of affordable housing within the city's limits and deposit $250,000 into that trust fund.
  • The city will implement all overdue housing element programs and submit reports to the California Department of Housing and Community Development (HCD) on the status of supportive and affordable housing projects.
  • Norwalk will also undergo ongoing state monitoring to ensure compliance with state law.
  • Attorney General Rob Bonta and HCD Director Gustavo Velasquez have stated that the state will take swift legal action against cities that disregard the law to block housing, especially for the most vulnerable populations.
  • Governor Newsom and Attorney General Bonta filed a lawsuit against Norwalk on November 4, 2024, alleging that the city's ban on emergency shelters, supportive housing, and transitional housing violated numerous state laws.
  • The city of Norwalk issued the ordinance banning new housing only weeks after Governor Newsom issued an executive order urging local governments to address unsanitary and dangerous encampments within their communities.
  • Since 2019, HCD has awarded Norwalk nearly $29 million in housing and homelessness funds.

Statistics:

  • Since 2014, unsheltered homelessness in California rose by approximately 37,000 people before Governor Newsom took office, but has since been significantly slowed under his administration.
  • In 2024, while homelessness increased nationally by over 18%, California limited its overall increase to just 3%, a lower rate than in 40 other states.
  • The state held the growth of unsheltered homelessness to just 0.45%, compared to a national increase of nearly 7%.
  • California achieved the nation's largest reduction in veteran homelessness and made meaningful progress in reducing youth homelessness.
  • Since its establishment, the HCD's Housing Accountability Unit has supported the development of 10,089 housing units, including more than 3,328 affordable units.

Sources:

  • California Department of Housing and Community Development (HCD)
  • Office of Governor Gavin Newsom
  • Attorney General Rob Bonta