California Governor Newsom’s office announced on October 3 that the city of Norwalk in Southern California will no longer receive state funding for “housing and homelessness” as they have failed to build new shelters for the homeless and an adequate number of affordable housing units, and have not effectively addressed the issue of homelessness.
Governor Newsom criticized the city for accepting nearly 29 million dollars in California “housing and homelessness” funds but still taking actions that obstruct homeless individuals from accessing support, shelter, and housing. Since Newsom took office in 2019, California has invested over 40 billion dollars in housing improvements and more than 27 billion dollars in addressing homelessness.
“In the face of a looming homeless crisis, it is unacceptable for the city of Norwalk to block the construction of shelters, leaving people stranded on the streets. This is truly inhumane,” said Newsom, emphasizing that the homeless crisis demands urgent action and that all cities, including Norwalk, must comply with California housing laws.
California sets housing construction goals for each city, including the construction of a certain number of homeless shelters and affordable housing units. Newsom stated in a press release that during the 2021-2029 “housing element” cycle, the city of Norwalk only issued permits for 175 housing units, representing a mere 3.5% of its target of 5,034 units under the Regional Housing Needs Allocation (RHNA).
Gustavo Velasquez, director of the California Department of Housing and Community Development (HCD), stated that “Norwalk’s actions are in violation of state housing laws, therefore their housing element no longer complies with regulations.” The accountability department has explicitly informed the city that if they do not lift the ban on construction, the HCD will take further actions, including disqualifying the city from critical funding, imposing constraints on developers operating within the city, and potentially filing lawsuits against the city.
According to NBC News, on August 6 this year, Norwalk passed a 45-day emergency ordinance suspending the construction of emergency shelters, single-room occupancies, supportive housing, and transitional housing.
On September 16, the state government issued a notice of violation to the city, with the Governor threatening to sue the city over the construction halt. On September 17, after discussions, the city council voted to extend the construction halt by an additional 10 months and 15 days. Mayor Margarita Rios of Norwalk stated that the council’s decision aimed to ensure public safety while maintaining local control over land use.
“Our ordinances are designed to promote responsible city development to protect residents,” Rios said. “However, based on our experience with housing projects, especially the Roomkey program, which will bring in a large number of high-needs homeless individuals placed near residences, schools, and public spaces, this has caused significant concerns among residents.” The federally funded California Roomkey program places homeless individuals in hotels or motel rooms.
Rios expressed a desire for better communication with the state government, stating, “We urgently need the state government to improve communication and collaboration to resolve these issues, approaching them with a spirit of cooperation rather than through punishment and threats.” However, the Governor’s response was to withhold funding, accusing the city of violating various California planning and regulations, including the Housing Crisis Act, Land Use Anti-Discrimination Act, Fair Housing Act, and Housing Element Act.
This marks the first action taken by the HCD’s accountability department regarding homeless housing issues. Since its establishment in 2021, the department has supported the development of over 7,500 housing units, including 2,700 affordable housing units. ◇