California’s City of Norwalk has reached a settlement with state officials following a lawsuit over a housing ban that targeted vulnerable populations. The settlement was announced by Attorney General Rob Bonta, Governor Gavin Newsom, and Gustavo Velasquez, the director of the California Department of Housing and Community Development (HCD).
The lawsuit, filed on November 4, 2024, claimed that Norwalk’s prohibition on emergency shelters, supportive housing, single-room occupancy units, and transitional housing violated several state laws. The state sought a court order to compel Norwalk to repeal the housing ban and comply with California housing regulations.
On February 19, 2025, the Los Angeles County Superior Court denied Norwalk’s request to dismiss the case, paving the way for the recent agreement, which still requires court approval. Bonta stressed the importance of holding cities accountable for obstructing housing initiatives aimed at aiding those in need. “We are ready to collaborate with cities that are eager to combat our housing crisis. However, if communities choose to challenge our resolve, today’s settlement provides a clear response,” he said.
According to the terms of the settlement, Norwalk is obligated to lift its housing ban in an upcoming City Council meeting or through a specially convened session. The settlement also mandates the creation of a local housing trust fund dedicated to affordable housing development, with an initial deposit of $250,000. Furthermore, Norwalk must ensure that housing applications are processed in accordance with state law and implement overdue housing programs.
Governor Newsom criticized Norwalk’s actions, indicating that the city’s reluctance to address the ban voluntarily was unacceptable. He remarked, “No community should abandon its residents in need, particularly when individuals are struggling to find shelter.”
Velasquez reinforced the state’s commitment to enforcing housing laws. He remarked that the outcome of this case should serve as a warning to other cities. “This settlement guarantees that Norwalk will accept and process housing applications while contributing funds to affordable housing initiatives,” he stated.
The agreement imposes detailed requirements on the city, including quarterly reports to HCD on housing projects for the duration of its Sixth Housing Element Cycle, which spans from 2021 to 2029. These reports must cover all proposed affordable housing projects and highlight any applications that were withdrawn or denied, along with justifications aligning with state law.
Norwalk is also required to amend its housing element to acknowledge the disproportionate impact of the moratorium on vulnerable groups, including individuals experiencing homelessness. The city must adopt new initiatives to address these harmful effects and coordinate with county and state officials to meet the needs of special populations.
In addition to repealing the moratorium, Norwalk must publish a public notice within 15 days on its official website, clarifying that applications for various types of housing will now be accepted. This notice will remain available for 180 days and must be disseminated to developers and city staff involved in zoning matters.
The settlement holds far-reaching implications for Norwalk’s future housing strategies. It stipulates that the city must fully implement overdue programs by the end of 2025 and amend its housing policies to reflect its obligations to foster inclusive communities. Should the city fail to comply, HCD retains the authority to revoke its housing element certification.
Originally, the conflict began in August 2024, when the Norwalk City Council passed an ordinance imposing a 45-day moratorium on new supportive housing without the necessary legislative findings. Following an extension of this ban, the HCD issued a Notice of Violation, culminating in the decertification of Norwalk’s housing element in October 2024 and the subsequent lawsuit.
Once the settlement is officially approved by the court, it will conclude the litigation and resolve all issues associated with the moratorium. However, the Attorney General and HCD will continue to monitor Norwalk for any future violations of state housing laws.
This article was automatically written by Open AI, and the people, facts, circumstances, and story may be inaccurate. Any article can be requested for removal, retraction, or correction by writing an email to contact@publiclawlibrary.org.