To settle a lawsuit brought by the governor and state attorney general, the city of Norwalk has agreed to repeal its prohibition on homeless shelters and will contribute $250,000 for new affordable housing, officials said Friday.
The Norwalk City Council banned shelters last year as well as laundromats, payday lenders and other businesses known to have clienteles consisting of mostly residents who earn low incomes.
The settlement also requires Norwalk to create an affordable-housing trust fund and be subject to state monitoring.
“The Norwalk city council’s failure to reverse this ban without a lawsuit, despite knowing it is unlawful, is inexcusable,” Gov. Gavin Newsom said in a statement. “No community should turn its back on its residents in need — especially while there are people in your community sleeping on the streets. No city is exempt from doing their part to solve the homelessness crisis.”
The city issued a statement in response: “The City’s moratorium was never about turning our back on those in need — it was about pressing pause to ensure that the mistakes of past projects weren’t repeated in Norwalk. Too often, cities have seen homeless programs rushed into place without adequate safeguards, accountability, or coordination. That approach fails both the unhoused and the broader community.
“Our pause allowed us to insist on collaboration with Los Angeles County, to integrate safety measures from the start, and to align with projects that actually deliver results,” Norwalk officials said.
Newsom and state Attorney General Rob Bonta filed a lawsuit in November alleging the city’s ban on shelters that provide a temporary place to sleep, supportive housing, single-room occupancy housing and transitional housing violated many state laws. The state sought a court order compelling the city to repeal the shelter moratorium.
Last October in response to the city’s failure to repeal the ban, the state decertified Norwalk’s housing element, making the city ineligible for significant housing and homelessness funding and ensuring the Norwalk officials can no longer deny permits to construct “builder’s remedy” low-income housing developments.
The settlement, which is subject to court approval, ensures the southeastern Los Angeles County community reaches compliance with the law and helps residents in need, Bonta said.
The city’s statement noted that on May 17 “during the Contract Cities Association Annual Seminar, (LA County) Supervisor Janice Hahn publicly affirmed her partnership with Norwalk, and together we are moving forward with meaningful solutions: 54 Project Homekey housing vouchers, many for Norwalk residents experiencing homelessness, and the Mental Health Village at Metropolitan State Hospital. That facility, which is in a secure and controlled environment, will provide the professional treatment and housing that is desperately needed.
“This moratorium was about protecting the safety of Norwalk residents, housed and unhoused alike, while ensuring that new investments are responsibly planned,” city officials said. “We are committed to deliberate collaboration with county and state partners to ensure every program here is accountable, well-run, and sustainable for the long term.”
Bonta said that, before filing the lawsuit, state officials warned Norwalk on several occasions there would be serious consequences if the city moved forward with its housing ban.
“Regrettably, our warnings went unheeded, and we were forced to take legal action,” Bonta said Friday. “We are more than willing to work with any city or county that wants to do its part to solve our housing crisis. By that same token, if any city or county wants to test our resolve, today’s settlement is your answer. All of us have a legal and moral responsibility to help — not hurt — those struggling to keep a roof over their heads or lacking housing altogether.”
As part of the agreement, Norwalk will submit reports to the California Department of Housing and Community Development on the status of supportive and affordable housing projects so that the state can more readily monitor the city’s actions, officials said.
“This case should send a clear message: When a city’s leaders disregard the law to block housing — especially housing for those most in need — this administration will take swift legal action,” HCD Director Gustavo Velasquez said in a statement. “This settlement ensures Norwalk will accept and process housing project applications, contribute meaningful funding for affordable housing development, and coordinate with Los Angeles County to address the needs of people experiencing homelessness. Going forward, HCD will continue to provide critical oversight to ensure accountability to that pledge.”
A copy of the settlement agreement is online.
