Governor’s Reorganization Plan Takes Effect, Creating New CA Housing and Homelessness Agency in 2026

On July 5, Governor Gavin Newsom’s Government Reorganization Plan took effect, allowing the Administration to begin efforts to split the Business, Consumer Services, and Housing Agency (BCSH) into two separate state agencies. Under the Plan, the new California Housing and Homelessness Agency (CHHA) will perform oversight, administration, and coordination for the state’s housing and homelessness efforts, including resources and policy development.

The new Business and Consumer Services Agency (BCSA) will focus on coordinating standards and best practices for licensing, enforcement, and education in the oversight of various business and professional licensing departments and boards. Under the Plan, the two new agencies will become effective July 1, 2026, at which time the current BCSH will be dissolved.

As previously reported, CSAC testified in support of the Governor’s Reorganization Plan before the Little Hoover Commission this Spring, highlighting how a new agency focused solely on housing and homelessness issues can lead to better alignment, coordination, and efficiency for homelessness programs.

As CSAC continues to anchor homelessness advocacy efforts in the AT HOME framework, we welcome the opportunity CHHA presents to help establish a comprehensive homelessness response system grounded in clear lines of responsibility, accountability, and reliable funding.