Norwalk reports settlement with state; housing moratorium allowed to expire and housing element recertification expected

City Attorney Glassman told the Norwalk City Council during a closed-session report that the city and the State of California have resolved litigation by stipulation and that the court approved a stipulated final judgment on Sept. 5, 2025. As part of the settlement, the council allowed the urgency moratorium ordinance (No. 24‑1752U), which had limited transitional housing, permanent supportive housing, shelters and single‑room occupancy housing, to expire "by its terms," the attorney said.

The attorney said the agreement includes steps the city must take to have its housing element reinstated and that the state Department of Housing and Community Development (HCD), "through the deputy attorney general handling this matter," indicated the city's housing element would be recertified by Friday. He also said $250,000 placed in a housing trust as part of the settlement are funds controlled by the city and not a payment to the state.

The stipulation and the judge's approval mean proposals for transitional or supportive housing projects may now be submitted and will be processed "in the ordinary course," Glassman told the council. He flagged that two other closed‑session items were briefed but required no reportable action.

Why it matters: The court‑approved settlement and the expiration of the moratorium remove a legal barrier that had restricted certain housing project types, a step city staff identified as necessary for the housing element process. HCD recertification is a threshold for many state funding and planning processes.

Details from the closed session: Glassman said the moratorium ordinance had been adopted Aug. 6, 2024 (Ordinance No. 24‑1752U) and that the city took action in a public hearing on Sept. 5 to allow that ordinance to expire (the attorney referenced dates in the settlement discussion). He said the judge in the case was Judge Chalfant and that the stipulated final judgment and order was signed Sept. 5, 2025.

City Manager and council members did not take additional public action at the meeting on the settlement beyond Glassman's report. The attorney said other closed‑session items presented that evening required no reportable action.

What the city said about settlement funds: Glassman emphasized the $250,000 in trust funds are earmarked for housing projects and remain under city control rather than being a payment to the state.

Looking ahead: With the moratorium expired and HCD review reportedly imminent, staff said developers may again submit projects that previously would have been restricted, and the city expects to process them under standard permitting and review timelines.