By Vanguard Staff
Governor Gavin Newsom’s reorganization plan went into effect last week, setting the stage for the creation of a California Housing and Homelessness Agency as well as a Business and Consumer Services Agency. The move marks a significant structural shift in how the state approaches its overlapping housing and homelessness crises.
The reorganization received approval from the Little Hoover Commission, California’s independent oversight agency, which reviewed the plan as part of its statutory responsibility to assess all executive proposals to restructure state government. In its review, the Commission acknowledged the severity of California’s housing challenges, citing the state’s rank of 48th in housing units per capita, a median home price more than double the national average, and one of the highest shares of cost-burdened renters in the country.
While supporting the governor’s proposal in principle, the Commission warned that the reorganization alone would not be sufficient to address California’s entrenched housing problems. In its official review, A Review of Government Reorganization Plan 2025, the Commission urged the state to adopt additional reforms to ensure the success of the new agency.
Among the recommendations was a call for a thorough evaluation of all homelessness programs currently administered across various agencies, with the goal of consolidating oversight under the new Housing and Homelessness Agency. The Commission also urged the state to streamline and align program applications, reporting, and service delivery processes to reduce administrative burdens on both providers and service users.
To improve transparency and oversight, the Commission recommended mandatory progress reports from the newly-formed agencies on a defined timeline. It also called for a formal process to gather and incorporate stakeholder input during the implementation phase.
Another key recommendation focused on California’s fragmented affordable housing finance system. The Commission proposed that the governor and state treasurer establish formal agreements to unify the application and review process for financing affordable housing, creating the kind of “one-stop shop” envisioned in the reorganization plan.
While acknowledging the potential benefits of the plan, the Commission stressed the importance of moving quickly and managing resources carefully. It warned that delaying the integration of affordable housing finance functions until July 2026 could undermine the plan’s effectiveness and erode public trust.
The Commission concluded that the success of the reorganization will depend not only on structural changes but also on the state’s ability to follow through with meaningful implementation. Without that, it cautioned, California risks worsening the housing crisis the plan was designed to help solve.
Add a new layer of bureaucracy, what could go wrong? Not to mention equating Homelessness and Housing as if they are related.