By Bo Tefu | California Black Media
In a major shake-up of state bureaucracy, Gov. Gavin Newsom has approved the creation of two new agencies to address California’s housing crisis and strengthen consumer oversight.
The move, which Newsom announced last week, establishes the California Housing and Homelessness Agency (CHHA) and the Business and Consumer Services Agency (BCSA). The reorganization dissolves the current Business, Consumer Services and Housing Agency by July 2026.
State officials say the change is designed to improve accountability and coordination in efforts to reduce homelessness, expand affordable housing, and strengthen consumer protections. According to the governor’s office, the new structure will consolidate housing and civil rights oversight into a single agency, while moving business and consumer regulation into a separate department.
“Housing and homelessness are complex and multifaceted issues, deserving of full and prioritized attention,” said Newsom in a statement on July 11, thanking lawmakers for approving the standalone housing agency.
The CHHA will oversee departments involved in housing development, homelessness coordination, and civil rights enforcement, including the Department of Housing and Community Development, the California Housing Finance Agency, and the Civil Rights Department.
The BCSA will take over responsibilities related to occupational licensing, financial regulation, and oversight of industries such as alcohol, cannabis, and real estate. It will include agencies like the Department of Consumer Affairs and the Department of Financial Protection and Innovation.
Tomiquia Moss, head of the soon-to-be-dissolved umbrella agency, said the new structure will help the state meet its housing goals. “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,” said Moss.
The announcement comes as California continues to face some of the highest homelessness rates in the country. State data shows California limited the increase in homelessness to 3% in 2024, compared to an 18% rise nationwide. Officials also reported declines in veteran and youth homelessness.
