By Angelica C. Gualpa
Less than a month after the more wealthy City of Torrance successfully stopped a planned state-supported housing facility for the homeless, California Attorney General Rob Bonta and Governor Gavin Newsom announced on Friday they had settled with the City of Norwalk, resolving the state’s lawsuit over the City’s unlawful ban on new housing for California’s most vulnerable residents.
The settlement comes after the Norwalk City Council in this Latino-majority, working—and middle-class city voted in 2024 to impose a temporary moratorium on new supportive housing. Under highly favorable terms for the state, the settlement includes Norwalk anti-up $250,000 into a trust fund to develop affordable housing and implement all overdue housing element programs.
“Before filing our lawsuit, Governor Newsom, Department of Housing and Community Development (HCD) Director [Gustavo] Velasquez, and I warned the City of Norwalk on several occasions that there would be serious consequences if it moved forward with its unlawful housing ban. Regrettably, our warnings went unheeded, and we were forced to take legal action,” said Bonta.
“We are more than willing to work with any city or county that wants to do its part to solve our housing crisis. By that same token, if any city or county wants to test our resolve, today’s settlement is your answer.”
Newsom said the Norwalk City Council’s failure to reverse this ban without a lawsuit – despite knowing it is unlawful – is inexcusable.
“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 their part to solve the homelessness crisis,” said Newsom.
Norwalk responded on its website that the moratorium was never about turning its back on those in need—it was about pressing pause to ensure that the mistakes of past projects weren’t repeated.
“Too often, cities have seen homeless programs rushed into place without adequate safeguards, accountability, or coordination. That approach fails both the unhoused and the broader community,” the statement read. “Our pause allowed us to insist on collaboration with Los Angeles County, to integrate safety measures from the start, and to align with projects that actually deliver results.”
The statement noted that on May 17, 2025, during the Contract Cities Association Annual Seminar, Supervisor Janice Hahn publicly affirmed her partnership with Norwalk.
“Together, we are moving forward with meaningful solutions: 54 Project Homekey housing vouchers, many for Norwalk residents experiencing homelessness, and the Mental Health Village at Metropolitan State Hospital. That facility, which is in a secure and controlled environment, will provide the professional treatment and housing that is desperately needed,” Norwalk said in the statement.
“This moratorium was about protecting the safety of Norwalk residents, housed and unhoused alike, while ensuring that new investments are responsibly planned. We are committed to deliberate collaboration with county and state partners to ensure every program here is accountable, well-run, and sustainable for the long term.”
But Velasquez was blunt.
“This case should send a clear message: When a city’s leaders disregard the law to block housing — especially housing for those most in need — this Administration will take swift legal action,” said Velasquez.
