This article was originally published by LAist on Sept. 5, 2025.
Topline: The city of Norwalk will repeal its ban on new homeless shelters as part of a legal settlement reached with the state of California, officials announced Friday.
What it means: Under the terms of the settlement, Norwalk will also create a $250,000 trust fund for affordable housing and comply with state housing mandates. The settlement is subject to court approval. The city of Norwalk did not immediately respond to LAist’s request for comment.
Backstory: Last year, the city adopted an ordinance imposing a temporary ban on homeless shelters. State officials said the ban violated state laws, but Norwalk’s City Council voted to extend it. California housing officials then sued the city in November, alleging the shelter ban violated state law. Norwalk tried to have the lawsuit dismissed, but an L.A. County judge rejected that request in February.
Officials say: Gov. Gavin Newsom said Friday that the settlement is a warning to other California cities:
“This case should send a clear message: When a city’s leaders disregard the law to block housing — especially housing for those most in need — this Administration will take swift legal action,” the governor said in a statement
California Attorney General Rob Bonta said Norwalk was repeatedly warned of the potential consequences of imposing the ban.
“We are more than willing to work with any city or county that wants to do its part to solve our housing crisis,” Bonta said in a statement. “By that same token, if any city or county wants to test our resolve, today’s settlement is your answer.”