California proposes new Housing and Homelessness Agency to streamline affordable housing efforts

The California State Assembly's Joint Hearing of the Assembly Business and Professions Committee and the Assembly Housing and Community Development Committee on May 13, 2025, focused on a significant reorganization proposal aimed at addressing the state's housing and homelessness crisis. The proposal seeks to create a new California Housing and Homelessness Agency, which would centralize efforts and streamline funding processes for affordable housing.

Key discussions highlighted the need for a more focused approach to housing and homelessness, separating these issues from consumer services. The proposed agency would consolidate various housing functions currently spread across multiple entities, improving administrative efficiency and accelerating the construction of affordable housing. Secretary Tamika Moss emphasized that the complexity of applying for state funds has been a barrier to delivering critical affordable housing, with developments often requiring multiple funding sources, which can significantly increase costs.

The proposal includes the establishment of a Housing Development and Finance Committee, designed to create a unified application process for state housing funding and enhance coordination among different housing entities. This committee aims to reduce the time and costs associated with securing funding, which can add tens of thousands of dollars to each project.

Gustavo Velasquez, Director of the Department of Housing and Community Development, noted that the new agency would provide dedicated leadership at the cabinet level, reinforcing the administration's commitment to addressing housing needs across the spectrum, from homelessness to homeownership. The initiative is expected to improve data collection and reporting, enabling better decision-making and ongoing attention to housing issues.

Rebecca Franklin, Chief Deputy Director at the California Housing Finance Agency, expressed optimism that the new structure would facilitate effective use of state resources and enhance transparency in decision-making processes. The phased implementation of the proposal is set to begin in 2026, with the goal of creating a more responsive and efficient system for addressing California's housing challenges.

Overall, the meeting underscored a collaborative effort among state officials to tackle the housing crisis through structural changes that prioritize efficiency and effectiveness in delivering affordable housing solutions. The proposed changes reflect a response to feedback from stakeholders and aim to create a more streamlined approach to housing and homelessness in California.