California Governor Gavin Newsom Credit: Office of the Governor
What you need to know: As part of California’s strategy to combat homelessness and expand housing, Governor Gavin Newsom is reorganizing state agencies to institutionalize housing, homelessness, and affordability as long-term priorities. The reorganization creates a new California Housing and Homelessness Agency and a separate Business and Consumer Services Agency to enhance focus and accountability across these critical areas.
July 11, 2025 - SACRAMENTO – Building on the Administration’s efforts to reverse decades of inaction on housing and homelessness, Governor Gavin Newsom today announced the reorganization proposal went into effect last week, authorizing the state to move forward and create the California Housing and Homelessness Agency and the Business and Consumer Services Agency. As a result, the state will move forward with the formation of the two new agencies to institutionalize these policy priorities for years to come: The California Housing and Homelessness Agency (CHHA) focused on housing, homelessness, and civil rights, and the Business and Consumer Services Agency (BCSA) is dedicated to business regulation and consumer protection.
“Housing and homelessness are complex and multifaceted issues — deserving of full and prioritized attention — something we have established within this administration. I am grateful that the legislature recognized the need for a new standalone agency dedicated to addressing these vexing issues that continue to face our state and nation, so that these issues will never fall into the shadows again. We have a moral imperative to continue this work and to ensure every Californian has a safe place to call home.”
Governor Gavin Newsom
Since taking office in 2019, Governor Newsom has created unprecedented policy and structural changes in state government to help California better address its housing and homelessness crises, including additional and unprecedented support for local governments, stronger accountability and enforcement, transformational changes to mental health services, and groundbreaking reforms — including a recently signed housing and infrastructure package that delivers foundational reforms to break down systemic barriers and help ensure California can meet the housing needs of current and future generations. These changes have helped connect hundreds of thousands of people at risk of or experiencing homelessness with vital supports.
Today’s announcement continues the administration’s ongoing work to increase housing, reduce homelessness, and improve affordability. Establishing a standalone agency provides the alignment needed to speed up the construction and financing of housing under California’s affordable housing programs. This approach aims to reduce, prevent, and ultimately end homelessness, while safeguarding civil rights and reinforcing California’s leadership in consumer protections. The new structure will also create a new housing continuum system to better align housing programs and financing and provide a more streamlined process with an all-of-government approach.
Creating long-term solutions
By creating a dedicated housing agency and streamlining consumer oversight, the Newsom Administration is ensuring California remains focused on long-term, scalable solutions that serve current and future generations.
“This bold plan shows we are being more aggressive in prioritizing change for the better,” said Tomiquia Moss, Secretary of the Business, Consumer Services, and Housing Agency. “This will enable us to better reach our goal of 2.5 million new homes by 2030, with one million of them being affordable housing. I’m extremely pleased the Governor is cementing his legacy by taking the Administration’s accomplishments to the next level, providing the structure to make lasting and sustainable change.”
The California Housing and Homelessness Agency (CHHA) will concentrate on coordinating efforts across government to tackle housing and homelessness challenges, as well as protecting Californians’ civil rights. In this all-of-government approach, CHHA will utilize resources and expertise within government to address these important issues. It includes the following departments:
- The Housing Development and Finance Committee (HDFC)
- Department of Housing and Community Development (HCD)
- California Interagency Council on Homelessness (Cal ICH)
- California Housing Finance Agency (CalHFA)
- Civil Rights Department (CRD)
The Business and Consumer Services Agency (BCSA) will strengthen the state’s ability to protect consumers by providing focused leadership and oversight across a wide range of industries, such as occupational licensing, alcohol regulation, cannabis regulation, and financial protection, fostering a proactive approach to addressing emerging risks and needs. It includes the following departments:
- Department of Alcoholic Beverage Control (ABC)
- Alcoholic Beverage Control Appeals Board (ABC AB)
- Department of Cannabis Control (DCC)
- Cannabis Control Appeals Panel (CCAP)
- California Horse Racing Board (CHRB)
- Department of Consumer Affairs (DCA)
- Department of Real Estate (DRE)
- Department of Financial Protection and Innovation (DFPI)
The new California Housing and Homelessness Agency and the Business Consumer Services Agency will become effective July 1, 2026, at which time the current Business Consumer Services and Housing Agency will be dissolved.
Reversing decades of inaction
The Newsom administration is making significant progress in reversing decades of inaction on homelessness. Between 2014 and 2019—before Governor Newsom took office—unsheltered homelessness in California rose by approximately 37,000 people. Since then, under this Administration, California has significantly slowed that growth, even as many other states have seen worsening trends
In 2024, while homelessness increased nationally by over 18%, California limited its overall increase to just 3%—a lower rate than in 40 other states. The state also held the growth of unsheltered homelessness to just 0.45%, compared to a national increase of nearly 7%. States like Florida, Texas, New York, and Illinois saw larger increases both in percentage and absolute numbers. California also achieved the nation’s largest reduction in veteran homelessness and made meaningful progress in reducing youth homelessness.
Source: Office of the Governor
