Little Hoover Commission approves governor's reorganization plan for housing, removes licensing recommendations

The Little Hoover Commission voted Thursday to endorse the governor's reorganization plan to create a California Housing and Homelessness Agency and adopted a set of implementation-focused recommendations while deleting four proposed changes on occupational licensing.

The commission held an extended public-comment period before deliberations. Dozens of housing advocates and local officials told commissioners the reorganization could streamline state financing for affordable housing, but many urged the state to move quickly and fund the new programs. "Creating a predictable, well funded housing finance delivery system is the number 1 action the state could take at this moment to encourage developers like us to build much needed affordable homes," said Alex Rogala, policy manager at MidPen Housing. Marina Espinosa of the California Housing Consortium said the plan would work only "if there is meaningful . . . culture shift and change in operation practices within the new agency," and urged that staff training and resources be prioritized.

Why this matters: commissioners said the state's fragmented housing finance system delays projects and elevates costs. The commission's final package supports a single agency structure while urging the administration to accelerate delivery of a…