Norwalk Lifts Ban on Housing Projects, Extends Restrictions on Liquor Stores and Other Businesses

August 7, 2025

Amended Moratorium Aims to Resolve State Housing Conflict While Supporting Long-Term Planning.

NORWALK, Calif. — The Norwalk City Council voted on August 5 to amend and extend its existing moratorium on certain types of land uses within the city, lifting the ban on housing-related projects while continuing restrictions on select commercial developments for another year.

The amendment removes emergency shelters, single-room occupancy units, supportive housing, and transitional housing from the list of prohibited uses. At the same time, the moratorium remains in effect for businesses such as convenience stores, discount retailers, laundromats, car washes, and payday loan establishments.

The policy shift comes amid ongoing litigation with the State of California over Norwalk’s housing policies. In 2024, the State decertified Norwalk’s Housing Element following a dispute stemming from a Los Angeles County plan to open a transitional housing facility at 12500 Firestone Boulevard without consulting the city. That move triggered the original moratorium, which was intended to pause certain land uses while Norwalk reassessed its zoning and land use policies.

City officials have since engaged in negotiations with the State in an effort to restore Housing Element certification and resolve legal challenges. The removal of housing restrictions is seen as a key step in that process.

In a related development, Los Angeles County is now considering the use of the California Metropolitan State Hospital site in Norwalk as the location for a proposed mental health and homeless services campus. City officials have expressed a preference for this location, viewing it as more consistent with regional coordination and supportive service delivery models.

The amended moratorium is set to remain in effect for one year as Norwalk continues to review development standards and align future land use planning with long-term community goals.