December 2024

As the new year soon begins, California continues its forward momentum with a new set of laws signed by Governor Newsom that improve the health, safety, and well-being of all Californians.

“California's new laws tackle today's biggest emerging challenges head-on. Through partnership with the Legislature, we’re strengthening public safety, building more housing, and providing more resources for our communities. These practical reforms protect what matters most while creating more opportunities for all Californians," said Governor Gavin Newsom.

Building more homes, faster

Here are just some of the laws taking effect in 2025 that will create more housing for all Californians:

• More housing in more communities: SB 1037 by Senator Scott Wiener (D-San Francisco) cracks down on local governments that block or delay approved housing, imposing penalties up to $50,000 per month — funds that go right back into supporting affordable housing in those same areas. Meanwhile, AB 3093 by Assemblymember Chris Ward (D-San Diego) updates the rules so cities and counties must plan for everyone’s housing needs — especially folks at the lowest income levels — so that all Californians can have a place to live.
• Expanding emergency shelter options: SB 1395 by Senator Josh Becker (D-Menlo Park) makes it easier to develop and operate interim housing, including emergency shelters and navigation centers. These facilities provide more than a place to stay – they connect people with housing assistance, health care, and other services to help them get back on their feet.
• Expanding farmworker housing: Every day, California's farmworkers put food on tables of residents across the state, yet many struggle to find homes near the fields where they work. AB 3035 by Assemblymember Gail Pellerin (D-Santa Cruz) makes it easier to build new farmworker housing in Santa Clara and Santa Cruz Counties, helping agricultural workers live closer to their jobs and spend more time with their families.

Why it matters: By streamlining processes and holding local governments accountable, these changes will create more housing available for Californians across all income levels.

Additional new laws

The legislation adds to California’s ongoing efforts to address the decades-long housing and homelessness crisis and create foundational changes that will build strong communities now and in the future. Click here for a larger list of new laws that strengthen California’s comprehensive effort to streamline housing production, address homelessness, and hold localities accountable to state housing law.

WHAT YOU NEED TO KNOW: Bucking national trends and outperforming a majority of other states, California continues to blunt decades-long increases in homelessness. With more shelter available than ever before, the state continues to lead the charge in urgently getting people off the street and connected to care and shelter, dramatically slowing the increase in unsheltered homelessness statewide.

SACRAMENTO, CA - Governor Newsom’s ambitious efforts to address the decades-long homelessness crisis have made California a leader in reducing its growth. While homelessness continues to increase across the nation, California stands out for its ability to blunt the rise and even reduce rates in key areas. New HUD annual point-in-time counts show continued progress that points to a continued reversal of the increased rate of people experiencing homelessness in the state, with roughly no increase in unsheltered homelessness, more people accessing shelter than ever before, and more beds available throughout the state – outperforming the nation as well as historic trends within California.

As states throughout the nation continue to see ever-higher increases in homeless populations, California has dramatically slowed the growth in homelessness and reduced the number of veterans and youth experiencing homelessness — more than any other state.

“No one in our nation should be without a place to call home. Homelessness continues to rise and increase at ever-higher numbers nationwide, but we are seeing signs of progress in California. We have turned the tide on a decades-long increase in homelessness – but we have more work to do. California‘s plan is ambitious and challenging but the data is proving that it is not impossible: our strategies are making a positive difference,” said Governor Gavin Newsom.

"California saw a lower percentage growth in homelessness than the rest of the nation," said Business, Consumer Services and Housing Agency Secretary Tomiquia Moss. "We know what solutions work, it takes concurrent investments and federal, state, and local governments working together to make homelessness rare, brief and one time. The results announced today show our efforts are making a difference."  

“This report illustrates that homelessness continues to be a nationwide issue that requires cooperation at all levels of government in meeting this crisis. In partnership with local governments, continuums of care, and community organizations, targeted state strategies have delivered new housing for unhoused residents," said Department of Housing and Community Development Director Gustavo Velasquez. “There is still work to be done to end homelessness in California, but the data shows the progress the Newsom Administration has made through targeted investments and increased local accountability.”

Outperforming the nation in slowing homelessness 

Homelessness continued to increase nationwide, increasing in 2024 by more than 18%. California is bucking the national trend by holding the statewide increase to 3%. This is a lower rate than in 40 other states. 

California is also one of the few states that have dramatically blunted the increases in unsheltered homelessness, holding it to 0.45%. In 2024, nationwide unsheltered homelessness grew by nearly 7% compared to California’s growth of less than 0.45%. Other large population states like Illinois, Florida, New York, and Texas growth in unsheltered homelessness surpassed California in both terms of percentage and number.

Reversing decades of inaction on homelessness

The Newsom Administration is making significant progress in reversing decades of inaction on homelessness. Between 2014-2019, unsheltered homelessness in California increased by approximately 37,000 people — more than double the increase seen during the Newsom Administration. Since 2019, the number of people experiencing unsheltered homelessness has increased by 14.3%, a marked improvement compared to the 51.8% increase during the five years prior to the Newsom Administration.

More beds, more shelter 

California is a nationwide leader in the availability of year-round shelter beds. As the total number of shelter beds decreased nationally by nearly 4%, California’s year-round shelter bed capacity grew by 5.7%, reaching 208,517 beds – more than any other state in the nation. During the Newsom Administration, California made available a record number of 71,000 shelter beds. This is nearly double the number created in the previous five-year period before 2019.

This expanded capacity has significantly reduced the percentage of Californians experiencing unsheltered homelessness, providing shelter and services to more people in need. California’s growth rate in year-round shelter outpaced 35 other states (including Washington, D.C.).

More care, more accountability 

Governor Newsom has made addressing the homelessness crisis a top priority by enacting strategies to expand care and shelter while implementing new accountability measures to ensure local governments actively address homelessness, with a particular focus on reducing unsheltered homelessness.

In August, Governor Newsom issued an executive order urging local governments to adopt policies and plans consistent with the California Department of Transportation’s (Caltrans) existing encampment policy. This policy prioritizes encampments that pose a threat to the life, health, and safety of the community, while ensuring a humane approach. Caltrans provides advance notice of clearance and works with local service providers to support those experiencing homelessness at the encampment, and stores personal property collected at the site for at least 60 days.

As required by the Governor’s executive order, the California Interagency Council on Homelessness released new guidance to assist local communities in addressing encampments. The guidance provides local communities with best practices for resolving encampments and connecting individuals in encampments with services and housing.

California is also transforming behavioral health care by improving access, accountability, transparency, and capacity. This includes through the Community Assistance, Recovery, and Empowerment (CARE) Court, a first-in-the-nation approach to create accountability for connecting individuals with untreated psychosis to the treatment and housing they need. It also includes Proposition 1, which is expanding the behavioral health continuum using existing dollars and providing care to individuals experiencing mental health conditions and substance use disorders — with a particular focus on people who are the most seriously ill, vulnerable, and at risk of homelessness or experiencing homelessness.

The East Los Angeles community recently celebrated the grand opening of Las Dahlias, an affordable permanent supportive housing development located along the Metro E line. Las Dahlias is a four-story building that transformed a formerly empty lot into 78 affordable homes for households earning 30-60 percent of Area Median Income. Of those 78 homes, 39 are set aside for individuals and families exiting homelessness. 

A project of National CORE, Las Dahlias is supported by nearly $24 million from the Affordable Housing and Sustainable Communities program, a program jointly administered by HCD and the Strategic Growth Council. The complex is near transit and vital services and has on-site amenities including a community center, park and rooftop verandas. 

Las Dahlias provides residents access to case management and crisis intervention services, as well as other programs and services, through the help of PATH and the Hope through Housing Foundation. With HCD’s new Homekey+ program, more permanent supportive housing is on the way. 

“It is complicated and it is hard to make affordable housing today,” said Executive Vice President of National CORE, Robert Dias, in his grand opening speech. “And we further know that none of that is possible, there cannot be success in that effort, without the commitment and dedication of our partners, so many of whom are here with us today.”

Samiya takes us on a tour of her home at Sonrisa Apartments in Sacramento. She said she enjoys the independence that living in affordable housing affords her. Sonrisa Apartments was supported by $10 million from HCD’s Transit Oriented Development program. Sonrisa was also the first affordable housing complex completed using excess state land under Governor Newsom’s Executive Order N-06-19 for affordable housing development.

New affordable housing for seniors and senior veterans has broken ground in Santa Barbara County! A project of Cabrillo Economic Development Corporation (CEDC), Village Senior Apartments in Buellton will provide 50 affordable and supportive homes for low-income seniors and senior veterans, as well as seniors exiting homelessness. 

“There is a huge need for affordable housing in general, but more specifically there is a significant need for senior housing,” said Derrick Wada, CEDC’s Director of Real Estate Development. “This project has been in the making for ten years, and we are excited to be here.” 

Village Senior Apartments is supported by more than $6 million from HCD’s Housing for a Healthy California and the Veterans Housing and Homelessness Prevention programs. The complex is near transit and vital services and will offer on-site amenities including a recreation room, community kitchen, central courtyard, community garden, and picnic area. With HCD’s new Homekey+ program, made possible by voter approval of Proposition 1 earlier this year, more supportive housing like this project is on the horizon. 

“Finding the right funding mix to really support a senior housing community in Buellton was a struggle,” said Victoria Brady, CEDC’s Chief Operating and Financial Officer. “Without the State of California’s resources, we wouldn’t have a project.”

Watch the video below to learn more.

Mike became homeless in 2019. He lived in his truck until he found temporary shelter in a Project Roomkey facility, which led to his current permanent residence at Central Sacramento Studios. Central Sacramento Studios was supported by $23 million from HCD’s Homekey program.

Van Nuys recently celebrated the groundbreaking of a new permanent supportive housing development that will provide 90 homes and supportive services to people exiting homelessness. The Pano, a project of L.A. Family Housing Corporation, is being developed on the site of a former motel utilizing both adaptive reuse and new construction. Many of the current one- and two-story structures will be converted into 40 permanent supportive residences, while a new three-story building will create 51 additional homes. 

HCD supported The Pano with more than $7.6 million from the Homekey program and $23.9 million from the Multifamily Finance SuperNOFA Program. Those funds will help create a supportive environment for residents that will include case management services, transportation assistance, and connections to mental and physical healthcare providers, including substance abuse treatment centers. Residents will also enjoy on-site amenities such as community areas and a dog park. 

HCD’s new Homekey+ program, funded by voter-approved Proposition 1, will help support the development of more safe, stable homes for Californians who struggle with chronic homelessness and behavioral health challenges and provide opportunities for them to heal and move forward.

Finding affordable living that was also wheelchair accessible was a challenge for Vincent. After living for months in motels and shelters, Vincent is relieved to be in his new home at Imagine Village. Imagine Village was supported by HCD’s Supportive Housing Multi-Family Housing Program.

The City of Hayward celebrated a new milestone this year—the completion of its first all-electric affordable housing development.

Depot Community Apartments is a new, permanent supportive housing project for low-income individuals and people exiting homelessness. The development provides 125 new homes for one- to two-person households earning 30-60 percent of the Area Median Income, with 63 of those homes reserved for individuals experiencing homelessness.

With $20 million in funding from HCD’s Multifamily Housing Program, Depot Community Apartments was developed in partnership by Allied Housing, Inc. and the City of Hayward. The project was designed with a focus on creating a green community and supporting self-stabilization for residents, who will be provided wrap-around supportive services through Abode Services including on-site social workers, case management, workshops, and classes. Individual units include electric appliances, air conditioning and heating units, and ceiling fans, achieving net-zero carbon emissions.

On-site amenities include an activity room, dog park, basketball court, computer room, outdoor recreation area, and community garden. The property is also protected by on-site security, giving residents a safe place to call home.