Norwalk to Lose State Funding After Shelter Ban

A Southern California city will lose state funding after it extended a ban on new emergency shelters and supportive housing developments within its boundaries, reports Marissa Wenzke for CBS News. The Norwalk ordinance prohibiting new shelters also puts a moratorium on convenience stores, laundromats, car washes, and payday loan providers, saying all these facilities “may have detrimental effects” on the community.

The California Department of Housing and Community Development (HCD) warned the city it violated multiple state laws in September. Last week, Governor Gavin Newsom announced the city is in violation of California’s housing element law. “Because of that, Norwalk is no longer eligible for ‘key state housing and homelessness funds’ and cannot deny certain affordable housing projects, Newsom's office said in a statement.”

California’s Regional Housing Needs Assessment tasks each local jurisdiction with facilitating the construction of enough new housing to meet demand. In the most recent 8-year cycle, Norwalk has issued permits for just 3.5 percent of its state-assigned housing units, according to the governor’s office.

In a statement, HCD deputy director of communications Pablo Espinoza said the department is looking at potential next steps. “HCD has many tools at our disposal to bring about accountability and we are evaluating next steps, including referral to the CA Attorney General.”