Norwalk will no longer be able to receive state funds for housing or homelessness, Gov. Gavin Newsom announced Thursday, saying the city is violating state housing laws by banning homeless shelters.
The governor's office added the city is losing its housing element certification, a plan that frames a city's housing goals and needs.
State officials also accused Norwalk of taking almost $29 million in funds for homelessness and housing even as it tries to prevent future homeless shelters and transitional housing.
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“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,” said Gustavo Velasquez, the director of the California Department of Housing and Community Development, in a statement.
Norwalk has only built 175 of 5,034 units it is required to during this housing element cycle, which runs from 2021 until 2029, according to the governor’s office.
Newsom wrote in a statement Thursday that every city, including Norwalk, must follow state housing laws.
“After the state has provided cities and counties with unprecedented funding to address the homelessness crisis, it’s beyond cruel that Norwalk would ban the building of shelters while people are living on the city’s streets,” said Newsom. “This crisis is urgent, and we can’t afford to stand by as communities turn their backs on those in need.”
In response, Norwalk Mayor Margarita Rios said in a statement that the city council's decision preserves local control for land use while ensuring public safety.
"Our ordinance was specifically designed to protect residents by promoting responsible development," said Rios. "However, our experience with housing programs, particularly Project Roomkey, which placed a substantial number of homeless individuals with high acuity needs, near homes, schools, and public spaces, has raised significant concerns."
Project Roomkey is a federally funded program in California that placed many unhoused people in hotel and motel rooms.
She said that the city needs better communications with the state.
"We urgently need improved communication and collaboration from the state to address these issues; we must tackle this in a spirit of cooperation rather than under the threat of penalties," said Rios.
Norwalk passed a 45-day emergency measure Aug. 6, pausing the creation of new shelters and other supportive housing.
On Sept. 16, California issued a Notice of Violation, with Newsom threatening to sue the city in response to the ban.
But the next day, the Norwalk City Council voted to continue the ban for an additional 10 months and 15 days.
