Governor Gavin Newsom’s reorganization plan went into effect last week, setting the stage for the creation of a California Housing and Homelessness Agency as well as a Business and Consumer Services Agency. The move marks a significant structural shift in how the state approaches its overlapping housing and homelessness crises.
The reorganization received approval from the Little Hoover Commission, California’s independent oversight agency, which reviewed the plan as part of its statutory responsibility to assess all executive proposals to restructure state government. In its review, the Commission acknowledged the severity of California’s housing challenges, citing the state’s rank of 48th in housing units per capita, a median home price more than double the national average, and one of the highest shares of cost-burdened renters in the country.
While supporting the governor’s proposal in principle, the Commission warned that the reorganization alone would not be sufficient to address California’s entrenched housing problems. In its official review, A Review of Government Reorganization Plan 2025, the Commission urged the state to adopt additional reforms to ensure the success of the new agency…