California, Norwalk settle lawsuit over homeless shelter ban

The city of Norwalk has reached a settlement with California after the state sued over the city’s ban on shelters for homeless residents.

“The Norwalk city council’s failure to reverse this ban without a lawsuit, despite knowing it is unlawful, is inexcusable,” Gov. Gavin Newsom said in a statement. “No community should turn its back on its residents in need — especially while there are people in your community sleeping on the streets. No city is exempt from doing its part to solve the homelessness crisis.”

The settlement, which still requires court approval, calls for Norwalk to:

• Repeal its ordinance banning new supportive and emergency housing.
• Establish a $250,000 local housing trust fund to support affordable housing.
• Implement overdue housing element programs.
• Submit quarterly reports to the state on affordable and supportive housing projects.
• Post public notices confirming the repeal and accept new project applications in compliance with state law.

California sued Norwalk last year after the city extended its moratorium on emergency shelters, transitional housing and single-room occupancy units despite warnings from the governor and the Department of Housing and Community Development.

In October 2024, the department revoked Norwalk’s compliance with the housing element law, making the city ineligible for state housing and homelessness funds.

Last year, Newsom issued an executive order authorizing state and local officials to dismantle encampments, following a U.S. Supreme Court ruling in Grants Pass v. Johnson that gave governments broader authority to remove people camping in public spaces.

The decision drew mixed reactions, with some leaders applauding the move while Los Angeles Mayor Karen Bass called it “unfortunate” at the time.

More recently, Newsom announced the creation of the State Action for Facilitation on Encampments, or SAFE Task Force, which will coordinate with Caltrans, the California Highway Patrol, and state health and housing departments to clear encampments along state rights-of-way in California’s 10 largest cities.