California's Housing Crisis: Governor Newsom and AG Bonta Announce Settlement with Artesia

Strategic Insights -

The City of Artesia, California has agreed to a settlement to resolve violations of state housing law, putting the city on an expedited timeline to submit a compliant housing element to the Department of Housing and Community Development. As part of the agreement, the city will create 1,069 new homes, including 608 that will be affordable for very low-, low-, and moderate-income Californians. This settlement marks a significant step towards addressing California's housing crisis, which has seen a 37,000-person increase in unsheltered homelessness between 2014 and 2019.

Key Takeaways:

  • The City of Artesia will create 1,069 new homes, with 608 being affordable for very low-, low-, and moderate-income Californians.
  • The city will adopt a compliant housing element, which must include an assessment of housing needs, an inventory of resources and constraints, and a program to implement policies, goals, and objectives.
  • The Housing Accountability Unit at HCD has supported the development of 10,089 housing units, including more than 3,328 affordable units, since its establishment in 2021.
  • The unit has improved housing enforcement and compliance in California, holding cities and counties accountable for their legal responsibilities to plan and permit their fair share of housing.
  • Governor Newsom has created a structural and foundational model to address the state's housing crisis, including streamlining and prioritizing building of new housing, funding new shelters, and holding local governments accountable.
  • California has seen a significant slowdown in the growth of homelessness since Governor Newsom took office, limiting its overall increase to just 3% in 2024, compared to a national increase of over 18%.
  • The state has achieved the nation's largest reduction in veteran homelessness and made meaningful progress in reducing youth homelessness.

Statistics:

  • 1,069 new homes will be created by the City of Artesia, including 608 affordable units.
  • 10,089 housing units have been developed, including more than 3,328 affordable units, since the establishment of the Housing Accountability Unit in 2021.
  • California limited its overall increase in homelessness to just 3% in 2024, compared to a national increase of over 18%.
  • The state held the growth of unsheltered homelessness to just 0.45%, compared to a national increase of nearly 7%.
  • Unsheltered homelessness in California increased by approximately 37,000 people between 2014 and 2019.

Sources:

  • Statement from the Office of Governor Gavin Newsom and Attorney General Rob Bonta.
  • California Department of Housing and Community Development (HCD).
  • Proposition 1.
  • CARE court system.
  • California's statewide task force to address encampments on state right of ways.