Status of the Governor’s Reorganization Plan for a California and Housing and Homelessness Agency

The Governor’s 2025-26 Budget Summary, released in January, proposed the creation of a California Housing and Homelessness Agency and a California Consumer Protection Agency using the formal governmental reorganization process, which will begin before the end of March. The Administration presented an overview of the proposal in budget subcommittee hearings at the end of March and will formally present the proposal to the Little Hoover Commission to consider within 60 days. The schedule for the Commission’s public hearings will not be published until after the Administration submits the plan.

To monitor the progress and engage in the hearings, please refer to the Commission’s website and subscribe to the updates. For more information on this overall process, visit the Legislative Analysts Office website.

The Governor’s reorganization plan will take 90 days to go into effect:

• Day 0: Governor Submits Plan to Legislative Counsel and the Little Hoover Commission
• Day 30: Governor Submits Reorganization Plan to the Legislature
• Day 60: Little Hoover Commission Issues Report on Plan
• Day 80: Legislative Policy Committees Issue Reports
• Day 90: Plan becomes effective unless the Senate or the Assembly passes a resolution to reject it by a majority vote

Such a reorganization has the potential to alter how California addresses its housing crisis, given the considerable influence state government has over housing, particularly over the past few years. The creation of an agency focused on housing and homelessness has the potential to consolidate and coordinate the many agencies, departments, and programs that address this issue. The team will continue to track this development.

Article Contributor: Jacqueline Woo, Manager, CA Legislative Analysis