CA Homelessness Crisis: Gov. Newsom's $12B Plan To Fix It

SAN DIEGO, CA — Gov. Gavin Newsom unveiled a $12 billion housing proposal to combat homelessness in the Golden State Tuesday and said he wants to "functionally end family homelessness" within five years.

The plan is a component of Newsom's $100 California Comeback Plan, which was introduced Monday and will be considered by the Legislature over the next several weeks.

"I'm not interested in six-year plans, 60-year plans; people want to see things change, [and] they want to see things change now," Newsom said in a news conference in San Diego Tuesday. "What's happening on streets and sidewalks is unacceptable. No one — no one — should be pleased with that."

Newsom's new initiative would house 65,000 people experiencing homelessness, provide 300,000 struggling residents with "housing stability" and create 46,000 new housing units.

"It's unprecedented, not just in California history; what we're announcing today is simply unprecedented in American history," he said. "This is an order of magnitude investment into transforming the homeless crisis in the state of California."

California, the nation's most populous state, has more people facing housing insecurity than any other state.

Some 161,548 people experienced homelessness on a single night in January of last year, according to a new state database. Nearly 250,000 people sought housing services in 2020, the database showed. Out of that total, 117,000 people were still waiting for aid while nearly 92,000 people found housing, according to the state.

Newsom is a former mayor of San Francisco, where the homelessness crisis is highly visible. "This is a point of personal pride and passion for me as a former mayor," he said.

Before the pandemic upended life in the state, Newsom was working to tackle homelessness and affordable housing. He also launched the "Roomkey" and "Homekey" projects with the help of federal funding.

The initiatives housed homeless residents and helped cities, counties and other local entities buy and convert motels and other buildings into housing.

Building on Homekey, Newsom said his new plan would dedicate nearly $9 billion to converting more hotels and motels and "unlocking" 46,000 new homeless housing units and affordable apartments.

"Converting hotels to housing is a key part of our Homeless Recovery Plan, which will be the largest expansion of permanent housing in 20 [years]," San Francisco Mayor London Breed tweeted Tuesday. "These investments by Governor Newsom will make a real difference transitioning people off our streets."

Newsom's plan also proposed $3.5 billion in efforts to prevent people from becoming homeless, including rental payment assistance, to "functionally end family homelessness within five years," according to Newsom's Tuesday statement.

The ambitious plan is part of Newsom's $100 billion pandemic recovery proposal that he has been rolling out piece by piece this week. That large sum comes from a historic $76 billion estimated state budget surplus and $27 billion in new funding from President Joe Biden's administration's coronavirus recovery bill.

SEE ALSO: New $600-Plus CA Stimulus Plan Would Affect Majority Of Residents

A February audit criticized the state for its fragmented approach to addressing homelessness and urged the state to track spending and set statewide policy.

It identified at least nine state agencies that spent $13 billion on 41 programs to address homelessness without evidence to show what was effective.

Newsom on Monday announced plans to distribute another round of $600 checks, focusing on middle-class and low-income households — about 80 percent of taxpayers in California. Under his recovery plan, Newsom also planned to double rental assistance with a $5.2 billion proposal that would pay back 100 percent of the rent owed by Californians affected by the pandemic.

The governor was expected to flesh out the rest of his relief plan and present a revamped version as part of the state budget Friday. As early as next week, lawmakers will begin their own negotiations ahead of the June 15 deadline to pass a new state budget plan.

Budget proposals are being laid out as Newsom faces an upcoming gubernatorial recall election, one that he is battling with his "California Roars Back" campaign. Many of his opponents have lambasted Newsom's administration for his handling of the pandemic and economy.

Newsom received criticism from two recall candidates Tuesday.

"Homelessness has skyrocketed by 10,000 people since Gavin Newsom took office," former San Diego Mayor Kevin Faulconer said. "No amount of money will solve this crisis without a leader who has the political will to buck the status quo and take bold actions to get people off the streets and indoors to receive the help they need."

Faulconer touted his own record in San Diego, where homelessness declined during his tenure, and said he could do the same for the state writ large.

John Cox, a Rancho Santa Fe businessman and Newsom's Republican challenger in the 2018 gubernatorial race, also spoke in San Diego on Tuesday. In tow was Tag, a 1,000-pound Kodiak bear in a revival of a stunt that stoked controversy from animal rights activists when he was trotted out for Cox's campaign last week in Sacramento.

"California is losing population for the first time in our history," Cox said. "The pretty boy politicians like Gavin Newsom are failing our state. It's time to make beastly changes to shake up Sacramento and save California."

Newsom beat Cox in 2018 by nearly three million votes.

The field of Republican challengers also includes reality TV star and Olympic decathlete Caitlyn Jenner and former Rep. Doug Ose.

The Associated Press and the City News Service contributed to this report.

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