California establishes new Housing and Homelessness Agency to tackle affordability challenges

In a significant step towards addressing California's ongoing housing crisis, state officials gathered on May 13, 2025, to discuss the creation of the California Housing and Homelessness Agency. This new agency aims to streamline efforts to provide safe and affordable housing for all Californians, a pressing concern echoed by many community members and leaders.

During the joint hearing of the Assembly Business and Professions Committee and the Assembly Housing and Community Development Committee, Secretary of Housing and Community Development emphasized the urgency of the housing crisis, stating, "Too many of our neighbors do not have a safe and affordable place to call home." The proposed agency is designed to centralize housing and homelessness functions, which officials believe will enhance administrative efficiency and accelerate the construction of affordable housing.

Gustavo Velasquez, director of the Department of Housing and Community Development, highlighted the department's achievements over the past five years, including funding for 60,000 new affordable homes. He expressed optimism that the new agency would provide focused leadership and improve collaboration across various state departments involved in housing and homelessness.

Rebecca Franklin, chief deputy director at the California Housing Finance Agency, reinforced the importance of this initiative, stating that it would facilitate better decision-making and resource allocation. The agency will encompass several key departments, including the Department of Housing and Community Development and the California Housing Finance Agency, ensuring a coordinated approach to tackling housing issues.

The proposed structure aims to simplify compliance procedures and reduce the time and costs associated with developing affordable housing. By creating a Housing Development and Finance Committee, the state hopes to streamline funding processes, making it easier for developers to access the necessary resources to begin construction.

The implementation of this proposal is set to occur over several years, with the goal of having the new agency operational by July 2026. This timeline allows for careful planning and stakeholder engagement, ensuring that the transition is smooth and effective.

As California continues to grapple with its housing challenges, the establishment of the California Housing and Homelessness Agency represents a proactive approach to creating lasting solutions. By focusing on collaboration and efficiency, state leaders aim to make significant strides toward ensuring that all Californians have access to affordable housing.