Governor Newsom highlighted the state’s housing progress as part of his 2025 budget proposal. Under the Surplus Land Act of 2021, over 30,000 new units have been added to the housing supply, with more on the way. The Governor’s Housing Accountability Unit has taken 540 actions to push projects forward and secured an additional 7,773 new units. Efforts to tackle homelessness are also in full swing, with the upcoming launch of a new accountability website to track housing, homelessness, and behavioral health data across counties.
The full budget proposal, released on January 10th, outlines ambitious goals to further address housing and homelessness in California. However, funding for affordable rental housing and homeownership programs was notably absent, continuing the trend of a reduction in spending for housing and homelessness following last year’s enacted budget. The administration instead focused on working with the legislature to advance housing policies that reduce cost, enhance accountability, and remove barriers to infill housing near transit.
the homelessness side, $100 million was included from the General Fund for Encampment Resolution Fund grants as committed in the 2024-25 budget. The proposal reinforced the emphasis on incorporating strong accountability policies for any future homelessness funding, including in-depth local reviews, regional convenings, and increased enforcement.
The state is also proposing the creation of a new California Housing and Homelessness Agency to streamline efforts across housing, transportation, health, climate, and community planning. This would result from dividing the existing Business, Consumer Services, and Housing Agency (BCSH) into two agencies—the California Housing and Homelessness Agency and a separate consumer protection agency.
Key priorities of the California Housing and Homelessness Agency include:
- Reducing housing costs
- Improving accountability and enforcement of housing laws
- Streamlining construction processes and addressing delays
- Enhancing coordination between housing and transportation planning
These efforts aim to accelerate housing production, preserve affordability, and address homelessness while aligning with California’s climate and environmental goals. A Reorganization Plan will provide more details on this Agency in the spring.
Article Contributor: Jacqueline Woo, Manager, CA Legislative Analysis
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