California Housing and Homelessness Agency

The California Housing and Homelessness Agency (CHHA) is an upcoming cabinet-level agency of the California state government which will be tasked with implementing state policies on housing and homelessness. The CHHA will become active by July 1, 2026.

Background

In 2025, as part of the reorganization of the BCSH within the budget, Governor Gavin Newsom proposed spinning off the California Department of Housing and Community Development, along with the California Interagency Council on Homelessness, California Housing Finance Agency and the Civil Rights Department, into a separate cabinet-level superagency, the California Housing and Homelessness Agency (CHHA), as well as the creation of a Housing Development and Finance Committee (HDFC) within the new agency to streamline policies on affordable multifamily housing funds.^[1][2][3] The proposal would also rename the remaining agency as the Business and Consumer Services Agency (BCSA), and designate secretaries for both agencies. The spinoff of the CHHA is motivated in part to the ongoing California housing shortage, as well as the growth of enforcement powers attributed to the HCD since 2017.

Newsom submitted his proposal to the Little Hoover Commission on April 4, 2025. On May 29, the commission favorably recommended the proposal to the Legislature with additional recommendations, including allowing the creation of a “one-stop shop” for state financial assistance to build affordable housing to go into effect immediately.^[4][5]

The commission recommended additional homelessness-related programs being merged into the CHHA from multiple other agencies and departments, including the California Health and Human Services Agency (Department of Social Services, Department of Health Care Services, Department of Community Services and Development), California State Treasurer, Governor's Office of Emergency Services, Department of Veterans Affairs and California Department of Corrections and Rehabilitation.^[6] In particular, due to constitutional constraints, the Commission recommended striking a formal deal between the offices of Governor and Treasurer to “create a unified application and review process” for all their respective affordable finance programs.

The proposal was submitted to the 2025 session of the Legislature on May 14, 2025, with the legislature having until July 4 to consider the proposal. Absent legislative rejection by simple majority in either house, the plan took effect on July 5, 2025.^[7] Implementation of the plan is set to take effect by July 1, 2026, by which time the BCSH is set to be dissolved and both the CHHA and BCSA will become active.^[8]

Proposed organization

• California Department of Housing and Community Development (HCD)
  • California Housing Finance Agency (HFA)
  • Disability Advisory Committee (DAC)
• California Interagency Executive Council on Homelessness (proposed)
  • California Interagency Council on Homelessness (CalICH)
• Civil Rights Department (CRD)
  • Civil Rights Council
  • Commission on the State of Hate
• Housing Development and Finance Committee (HDFC, proposed)

Reception

The Terner Center for Housing Innovation at the University of California, Berkeley assessed the proposal as a potential improvement over the fragmentation and bureaucracy of housing finance in the state government, but viewed the exclusion of two tax credit award agencies (the California Tax Credit Allocation Committee (TCAC) and California Debt Limit Allocation Committee (CDLAC), both under the California State Treasurer's office) from the proposed merger as a potential impediment.^[9][10]

See also

• California Social Housing Act, bill proposing a statewide social housing authority.