California Creates Housing-Focused Agency

Previously, the state’s housing and homelessness programs fell under a grabbag department that also regulates the alcohol industry, car mechanics, and horse racing.

1 minute read

July 13, 2025, 11:00 AM PDT

By Diana Ionescu @aworkoffiction


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California is getting a new state agency devoted entirely to housing. As Ben Christopher reports for CalMatters, the new agency will separate housing and homelessness services from the existing Business, Consumer Services and Housing Agency. As it stands, “Affordable housing grantmakers, lenders and urban planning regulators share agency letterhead with cannabis and alcohol industry overseers, professional licensors, car mechanic watchdogs and everyone at the California Horse Racing Board.” 

The new agency will also “simplify the state’s hydra of affordable housing financing systems.” Part of the reorganization plan addresses the myriad of organizations that affordable housing developers must approach to apply for loans, grants, tax credits, and other incentives. “”As written, the new housing agency will consist of the current agency’s housing-related entities along with a new Affordable Housing Finance Committee, which will be tasked with coordinating the housing subsidy programs currently under the governor’s control.” However, major funding sources will still be managed by the treasurer’s office, which could be a stumbling block in the streamlining effort.

Housing advocates say the move is “just the first step” in a much-needed reorganization of the state’s housing resources. 

Friday, July 11, 2025 in CALmatters

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