Image Source: Little Hoover Commission on California State Government Organization and Economy

California has made steady progress on affordable housing production in recent years, but the housing crisis is far from over, and millions are still struggling to find an affordable place to live. When Governor Newsom unveiled his 2025-26 January budget, it included an ambitious new proposal for reorganizing the state’s housing agencies that could reduce red tape, streamline the funding process for affordable housing, and improve coordination across state government. Learn more about next steps!

California has made steady progress on affordable housing production in recent years, but the housing crisis is far from over, and millions are still struggling to find an affordable place to live. When Governor Newsom unveiled his 2025-26 January budget, it included an ambitious new proposal for reorganizing the state’s housing agencies that could reduce red tape, streamline the state’s complex funding process for affordable housing, and improve coordination across state government.

On April 4 2025, Governor Newsom sent to the Little Hoover Commission (an independent state oversight agency) a proposed plan to split the responsibilities of the State’s Business, Consumer Services and Housing Agency (BCSH), creating a cabinet-level agency focused solely on housing and homelessness. 

Since its creation in 2012, the BCSH has expanded the scope and complexity of its work across a broad and unrelated group of responsibilities. The proposed California Housing and Homelessness Agency could create more focus on housing, leverage specific housing expertise of leadership, consolidate programs that are currently scattered across multiple departments, and improve coordination.  

On April 23, 2025, California’s Little Hoover Commission completed their first public hearing on the proposed California 2025 Government Reorganization (watch video of the hearing). The next meeting where the Little Hoover Commission will consider the new state agency will be held virtually at 10 am on Tuesday, May 13, 2025. If programs are fully funded, the California Housing and Homelessness Agency will improve our affordable housing investment system through alignment and process refinement, allowing existing programs and strategies to better achieve their goals.

The California 2025 Government Reorganization is supported by the Secretary of the Business, Consumer Services and Housing Agency, Tomiquia Moss, as well as leaders from the Terner Center, California Housing Partnership, California Housing Consortium, and Housing California.