Norwalk California Repeals Homeless Shelter Ban After State Lawsuit

The Southern California city of Norwalk has agreed to repeal its ban on homeless shelters and low-income housing projects as part of a settlement with California state officials, resolving a lawsuit alleging the city violated state housing laws. The ban, initially enacted in August 2024, also barred certain businesses serving low-income residents, which drew strong criticism from Governor Gavin Newsom and Attorney General Rob Bonta. Despite warnings, Norwalk extended the moratorium before the state filed suit in November 2024. Under the settlement, Norwalk will pay $250,000 into a trust fund for affordable housing development and must regularly report on housing project progress to state officials. The lawsuit underscored the city’s failure to meet state housing permit requirements, with a judge ruling there was no evidence supporting Norwalk’s claim that homeless shelters posed an immediate public safety threat. Governor Newsom condemned Norwalk's resistance, emphasizing that no community should turn its back on residents in need amid California's homelessness crisis.