Governor Newsom’s proposal to align affordable housing programs is a step toward implementing the Commission’s past recommendations for a coordinated and efficient housing finance system, Little Hoover Commission Chair Pedro Nava said.
 
“We’ve looked at the state’s affordable housing programs in the past, and concluded that greater coordination is needed,” Nava said. “Like other stakeholders, we look forward to seeing the details of the Governor’s proposal. This heads in the right direction, but key questions remain: how will these changes operate in practice, and will they ultimately achieve the goal of producing more housing?”
 
The Governor’s 2026-27 budget proposes that the state “improve alignment of affordable housing programs … to better coordinate state housing resources.”
 
The Governor’s proposal aligns with the Commission’s call in prior reports for stronger coordination of the state’s affordable housing programs, the oversight of which is currently divided between the Governor and the Treasurer.
 
In its 2022 report, California Housing: Building a More Affordable Future, the Commission found that “the current organization is inefficient, results in important service gaps, entrenches a disconnect between state goals and policies, and requires multiple elected leaders to share the same housing vision to create a statewide strategy.”
 
Similarly, during the Commission’s 2025 review of the Governor’s Reorganization Plan, witnesses described navigating the maze of disconnected programs with different requirements, timelines, and processes as “maddening and exhausting.” The consequence of fragmented financing, the Commission found, was delayed projects, increased costs, and fewer affordable homes built.
 
In both reports, the Commission called for an integrated approach to administering state housing programs, including clearer governance structures and improved interagency coordination. Coordinating complementary financing tools, such as tax credits, loans, and grants, allows affordable housing projects to move efficiently from concept to completion. Aligning programs under a common framework can reduce duplicative oversight and provide applicants with a more navigable system.
 
“Californians need more housing at affordable prices,” Nava said. “We recommended that the Legislature approve the Governor’s 2025 reorganization plan because we thought it would move the state toward those goals. The Governor’s new proposal for better coordination is the next step, and we look forward to working with the Administration and the Legislature on these issues in the future.”

The Little Hoover Commission is America’s only permanent, independent citizens commission working to improve state government. A nonpartisan oversight agency created in 1962, the Commission includes 13 Commissioners appointed by the Governor and legislative leaders. The Commission’s mission is to investigate state operations and promote efficiency, economy, and improved service.