The agreement resolves a lawsuit filed by Governor Gavin Newsom and Attorney General Rob Bonta in November 2024, which alleged the city violated multiple state housing laws
The City of Norwalk has agreed to overturn its ban on new homeless shelters and supportive housing as part of a legal settlement with the state of California, officials announced.
The agreement resolves a lawsuit filed by Governor Gavin Newsom and Attorney General Rob Bonta in November 2024, which alleged the city violated multiple state housing laws by prohibiting emergency shelters, transitional housing, and similar facilities. The ban, enacted in 2023, came as the state ramped up efforts to hold cities accountable for contributing to California’s ongoing housing and homelessness crisis.
Under the terms of the settlement, Norwalk will not only repeal the ban but also contribute $250,000 to a new affordable housing trust fund and submit to ongoing monitoring by the California Department of Housing and Community Development (HCD). The city will also be required to bring its housing plans into compliance with state law and process future housing applications without discrimination.
State officials criticized Norwalk leaders for refusing to repeal the ordinance voluntarily. “This case should send a clear message: cities cannot ignore state housing law without consequences,” said HCD Director Gustavo Velasquez.
Norwalk had already been penalized prior to the settlement. In October 2024, the state decertified the city’s housing element, making it ineligible for certain state housing funds and exposing it to so-called “builder’s remedy” projects, which limit local control over development.
Despite previously receiving nearly $29 million in housing-related funds since 2019, Norwalk faced increasing scrutiny after its shelter ban conflicted with Newsom’s executive order encouraging cities to use state funding to reduce homelessness.
The agreement must still be approved by a judge. Once finalized, state officials said Norwalk will be monitored to ensure compliance.
