What you need to know: The state is decertifying the City of Norwalk’s housing element following the city’s action breaking state housing law and implementing an illegal shelter ban. The state’s action makes the city ineligible for significant housing and homelessness funding and means the city can no longer deny “builder’s remedy” affordable housing projects.

SACRAMENTO — Today Governor Gavin Newsom announced the California Department of Housing and Community Development (HCD) has revoked the city’s compliance with housing element law. The Governor’s announcement follows through on his warning to Norwalk, taking swift action to hold the city accountable for its unlawful ban on homeless shelters and other housing.

Without a compliant housing element, the city can no longer deny certain affordable housing projects and is no longer eligible to receive key state housing and homelessness funds. Governor Newsom has also announced that the state may sue the city if they refuse to change course.

"After the state has provided cities and counties with unprecedented funding to address the homelessness crisis, it's beyond cruel that Norwalk would ban the building of shelters while people are living on the city's streets. This crisis is urgent, and we can't afford to stand by as communities turn their backs on those in need. No more excuses—every city, including Norwalk, must do its part and follow state housing laws," said Governor Newsom.

Norwalk’s failure to build housing

Creating more housing is key to addressing affordability and homelessness in California. All cities are required by state law to develop a housing plan to ensure that they are planning for enough affordable housing for their community. Norwalk has failed to meet its housing goals, and now has violated state law by banning shelter and other housing for those experiencing and at risk of homelessness despite its failure to build enough housing. The city has only issued permits for 175 units during this housing element cycle, a mere 3.5% of its 5,034 assigned Regional Housing Needs Allocation (RHNA), or the number of units required to ensure its community has enough housing.

The action by HCD to revoke Norwalk’s housing element compliance will speed up development in the community and incentivize the city to end its unlawful ban on housing so that residents have the housing they need.

“The City of Norwalk’s actions have placed them in violation of state housing law, and therefore their housing element is no longer in compliance,” said HCD Director Gustavo Velasquez. “Our Housing Accountability Unit provided the city clear guidance—with full transparency on what our next steps would be if they did not repeal this egregious ordinance. Instead of working to correct their missteps, they dug in their heels and are now ineligible for key funding and subject to the builder’s remedy.”

Norwalk’s failure to address homelessness

Norwalk has taken overt actions to block access to homeless support, shelter, and housing - despite having accepted nearly $29 million in state housing and homelessness funds. On August 6, the city adopted a 45-day urgency ordinance imposing a moratorium on emergency shelters, single-room occupancy housing, supportive housing, and transitional housing.

The state issued a Notice of Violation on September 16. On September 17, the council voted to extend the ordinance another 10 months and 15 days. Even after the state granted the city an extension to respond to its Notice of Violation, Norwalk failed to repeal the ordinance or put into place any action that would set the repeal in motion. Although city council members expressed an intent not to immediately enforce the moratorium, there is no formal stay or anything that would prevent the city from enforcing the moratorium as soon as it wishes, and the city has refused to commit to repealing it in the near future.

The moratorium violates several state planning and fair housing laws, including the Housing Crisis Act, the Anti-Discrimination in Land Use Law, Affirmatively Furthering Fair Housing, and the Housing Element Law.

More housing. More accountability.

Since taking office, Governor Newsom has provided local communities with unprecedented funding, investing over $40 billion to boost housing and more than $27 billion to address homelessness. Norwalk issued the ordinance only weeks after Governor Newsom issued an executive order that, among other things, urges local governments to use this funding provided by the state to address unsanitary and dangerous encampments within their communities and provide people experiencing homelessness in the encampments with the care, housing, and supportive services they need.

The notice was issued by HCD’s Housing Accountability Unit, which was launched by Governor Newsom in 2021 to ensure that cities and counties fulfill legal responsibilities to plan for and permit their fair share of housing, and to hold accountable those that fail to do so. This focus on accountability has in part led to a 15-year high in housing starts in California. Since its establishment, the unit has supported the development of more than 7,500 housing units, including more than 2,700 affordable housing units, through enforcement actions and by working with local jurisdictions to ensure compliance with housing law. In 2024, the unit was expanded to include a focus on homelessness issues - including compliance with state laws as they relate to homeless housing. The action against Norwalk is its first homelessness accountability action since its expansion.