State Sues SoCal City Over Its Moratorium on Homeless Shelters and Low-Income Housing

Gov. Gavin Newsom participates in an encampment cleanup in Los Angeles County through the state’s Clean California initiative on Aug. 8. Courtesy of Office of Governor Gavin Newsom

A Los Angeles County city was sued by the state on Nov. 4 over its emergency ordinance banning new homeless shelters, other types of low-income housing, and even certain businesses such as liquor stores, car washes, and payday lenders.

Norwalk, like all cities and counties in California, must supply affordable housing and work to alleviate the homelessness crisis under the state’s Housing Element Law.

“We have not, and will not hesitate to ensure that everyone with the power to approve or disapprove housing takes their duties seriously,” Attorney General Rob Bonta said in a statement.

The lawsuit, which the state has been threatening for months, alleges that Norwalk’s moratorium violates numerous state laws. Before taking Norwalk to court, the state issued warnings, and even revoked the city’s housing element compliance, making it ineligible to receive state housing funds.

“The Norwalk City Council’s failure to reverse this ban, despite knowing it is unlawful, is inexcusable. No community should turn its back on its residents in need,” said Gov. Gavin Newsom.

In addition to the alleged unlawful moratorium, Norwalk has failed to meet required housing goals, the state said.

‘Failed Approach’ 

On Aug. 6, Norwalk adopted a 45-day urgency ordinance imposing a moratorium on emergency shelters and single-room, supportive, and transitional housing, among other structures.

The ordinance came just weeks after Newsom issued an executive order in which he implored local governments to use state funding to address unsanitary and dangerous encampments in their jurisdictions, as well as provide camp residents with housing and support.

The governor highlighted his executive order by helping to clean up trash at multiple sites in Los Angeles County.

On Sept. 16, the California Department of Housing and Community Development (HCD) issued a notice of violation to Norwalk. The following day, the City Council voted unanimously to extend the ordinance for another 10 months and 15 days.

At that meeting, people spoke both for and against an extension.

“The governor’s actions reflect a failed approach to addressing homelessness,” Brian Lopez, a lifelong Norwalk resident, said. “Billions of dollars have been spent, yet the crisis has only deepened.”

Christina Sanchez, also a Norwalk resident, strongly opposed the moratorium because she doesn’t believe it makes Norwalk safer.

“It also doesn’t help address our housing and homelessness crisis to ban shelter or permanent supportive housing,” she said.

On Sept. 18, Norwalk released a statement regarding the moratorium, noting that it allows for exceptions.

“This action was taken to allow the city to further study the impact of the homelessness housing issue within Norwalk and to develop approaches to address this important concern,” the city stated. “The ordinance specifically allows for parties to seek a waiver from the moratorium with the proper review by the city.”

Although council members said they did not intend to enforce the moratorium right away, they failed to issue a formal stay to prevent enforcement, the state alleges.

The state announced on Oct. 3 that it would decertify Norwalk’s housing element.

“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.”

The “builder’s remedy” law requires cities and counties to approve affordable housing projects regardless of local zoning ordinances.

HCD, which referred the moratorium to the attorney general, has granted Norwalk nearly $29 million in housing and homelessness funds since 2019. HCD’s Housing Accountability Unit, launched in 2021 to help cities and counties fulfill their legal responsibilities, was expanded in 2024 to encompass a focus on homelessness issues.

The Epoch Times reached out to Norwalk council members for comment but did not hear back by publication time.