Norwalk to revoke ban on homeless housing in settlement with state

September 5, 2025

LCCN Staff Report

Norwalk has agreed to repeal a local ordinance that barred emergency shelters and certain supportive facilities for unhoused residents, settling a state lawsuit that alleged the city violated California housing laws. The agreement, announced Friday, requires Norwalk to revoke the ban, implement overdue housing programs to comply with state mandates, and establish a housing trust fund with an initial $250,000 deposit. The settlement is subject to court approval, according to California Attorney General Rob Bonta.

Governor Gavin Newsom criticized the city’s initial stance, saying the council’s refusal to reverse the policy until sued was inexcusable. “No community should turn its back on its residents in need — especially while there are people in your community sleeping on the streets,” Newsom said in a statement. “We are more than willing to work with any city or county that wants to do its part to solve our housing crisis,” Bonta said. “By that same token, if any city or county wants to test our resolve, today’s settlement is your answer.”

The five-member council adopted the ordinance last August as an emergency zoning measure, imposing a 45-day moratorium that blocked not only shelters and long-term supportive housing but also businesses such as laundromats, liquor stores, and payday lenders. The council later extended the moratorium for a full year. State officials said the emergency designation lacked the required findings that there was an imminent threat to public health and safety that zoning changes would address.

City officials argued Norwalk had already shouldered more than its share of regional homelessness programs without adequate state funding, pointing to problems around a large motel conversion that drew complaints about loitering and panhandling before it closed after 16 months. In February, a Los Angeles County Superior Court judge denied the city’s motion to dismiss the state’s case, clearing the way for the settlement.

A statement from Norwalk officials sent to LCCN read, “The City’s moratorium was never about turning our back on those in need – it was about pressing pause to ensure that the mistakes of past projects weren’t repeated in Norwalk. 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. 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. On May 17, 2025, during the Contract Cities Association Annual Seminar, Supervisor Janice Hahn publicly affirmed her partnership with Norwalk, and 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. 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.”