Governor Gavin Newsom is shaking up California’s government structure to tackle one of the most pressing issues facing the state: housing and homelessness. In a groundbreaking reorganization, the state is creating two new agencies that aim to streamline housing solutions and consumer protections.

The new California Housing and Homelessness Agency (CHHA) represents a significant shift in how the state approaches these complex challenges. By consolidating departments like the Housing Development and Finance Committee, Department of Housing and Community Development, and the California Housing Finance Agency, the state hopes to create a more focused and effective strategy for addressing housing needs.

Since taking office in 2019, Newsom has been aggressive in addressing homelessness, and the numbers show progress. While many states saw homelessness increase by over 18% nationally, California managed to limit its growth to just 3%. The state has also achieved the nation’s largest reduction in veteran homelessness, demonstrating a targeted approach to solving systemic issues.

The reorganization isn’t just about bureaucratic reshuffling. It’s about creating a comprehensive, long-term strategy to meet California’s ambitious housing goals. The administration aims to build 2.5 million new homes by 2030, with one million of those being affordable housing – a critical target for a state struggling with housing accessibility and affordability.

A key component of this new approach is the creation of a housing continuum system that will better align housing programs and financing. This means a more streamlined process for developing, funding, and implementing housing solutions across the state.

Parallel to the housing agency, a new Business and Consumer Services Agency will be established to strengthen consumer protections. This agency will oversee critical areas like cannabis regulation, alcoholic beverage control, and financial protection.

The new agencies will become effective on July 1, 2026, marking a significant milestone in California’s approach to housing and consumer services. As Tomiquia Moss, Secretary of the current agency, put it, this is about “cementing a legacy” and creating “lasting and sustainable change”.

For Californians struggling with housing insecurity, this restructuring offers a glimmer of hope – a systematic, focused approach to one of the most challenging issues facing the state.