Story perspectives

Newsom signs $1.5 B housing law, cuts homelessness 9%

7/15/2026

Summary

Story summary

Governor Gavin Newsom signed the housing law on a construction site in Oakland’s Chinatown, calling impact fees “comical” and “outrageous.”
The law creates a $100 million Disaster Rebuilding Fund, allocates $500 million in housing tax credits, caps impact fees, and earmarks $900 million in grants for municipalities to address homelessness.
Officials say the reforms could cut per-unit affordable-housing costs by $60,000-$70,000 and have contributed to a 9% decline in unsheltered homelessness statewide.

History

Historical Context

Voters approved Proposition 13 on June 6, 1978, capping property taxes at 1 % of 1976 values and triggering a 60 % plunge in local revenue the year after. Signed by Governor Jerry Brown, the measure forced cities such as Oakland and Los Angeles to seek state-funded housing solutions. In 2024 Governor Gavin Newsom and the California Legislature launched a $900 million grant program that works within those same fiscal limits.

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Story summary

Governor Gavin Newsom signed the housing law on a construction site in Oakland’s Chinatown, calling impact fees “comical” and “outrageous.”
The law creates a $100 million Disaster Rebuilding Fund, allocates $500 million in housing tax credits, caps impact fees, and earmarks $900 million in grants for municipalities to address homelessness.
Officials say the reforms could cut per-unit affordable-housing costs by $60,000-$70,000 and have contributed to a 9% decline in unsheltered homelessness statewide.

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