Little Hoover Commission backs creation of California Housing and Homelessness Agency, drops proposed licensing reforms

SACRAMENTO — The Little Hoover Commission voted May 29 to endorse the governor's reorganization plan to create a California Housing and Homelessness Agency and related housing governance changes, while removing several contested recommendations on occupational licensing.

The commission adopted the core recommendation that the state create two agencies to consolidate housing and homelessness responsibilities and approved five companion recommendations focused on stakeholder feedback, streamlined application processes and staff development. Commissioners agreed to remove recommendations that would have created an independent fee-setting commission and other structural licensing changes after probing questions and public concern.

The commission's action followed roughly 30 minutes of public comment, mostly from housing and allied organizations. Marina Espinosa of the California Housing Consortium said the group supported the reorganization but urged the state to fund programs captured by the plan: "This effort will only be a meaningful culture shift and change in operation practices within the new agency, and it's also critical that resources be allocated to the state's housing programs."

Sheila Nicolopoulos, director of policy and legislative affairs at the San Francisco Mayor's Office of Housing and Community Development, urged the…