Newsom restructures agencies to combat homelessness

As part of California's ongoing efforts to address homelessness and expand housing, Governor Gavin Newsom has announced a restructuring of state agencies. This reorganization aims to institutionalize housing, homelessness, and affordability as long-term priorities through the creation of the California Housing and Homelessness Agency (CHHA) and a separate Business and Consumer Services Agency (BCSA).

Governor Newsom stated, "Housing and homelessness are complex and multifaceted issues — deserving of full and prioritized attention — something we have established within this administration. I am grateful that the legislature recognized the need for a new standalone agency dedicated to addressing these vexing issues that continue to face our state and nation, so that these issues will never fall into the shadows again. We have a moral imperative to continue this work and to ensure every Californian has a safe place to call home."

Since taking office in 2019, Governor Newsom has implemented policy changes in state government aimed at tackling California's housing crisis. These include increased support for local governments, enhanced accountability measures, mental health service reforms, and a recent housing package designed to overcome systemic barriers.

The announcement underscores the administration’s commitment to increasing housing availability, reducing homelessness, and improving affordability. The establishment of CHHA is expected to streamline processes related to affordable housing programs while protecting civil rights. The BCSA will focus on consumer protection across various industries.

Tomiquia Moss, Secretary of the Business, Consumer Services, and Housing Agency said: “This bold plan shows we are being more aggressive in prioritizing change for the better... I’m extremely pleased the Governor is cementing his legacy by taking the Administration’s accomplishments to the next level.”

CHHA will coordinate efforts across several departments including Housing Development and Finance Committee (HDFC), Department of Housing and Community Development (HCD), California Interagency Council on Homelessness (Cal ICH), California Housing Finance Agency (CalHFA), and Civil Rights Department (CRD). Meanwhile, BCSA will oversee areas such as occupational licensing, alcohol regulation, cannabis regulation, financial protection with departments like Department of Alcoholic Beverage Control (ABC) among others.

The new agencies will become effective July 1, 2026.

Under Governor Newsom's leadership since 2019, California has made progress in reversing trends in homelessness despite national increases. In 2024 alone while national homelessness rose by over 18%, California limited its increase significantly lower than many other states.