Update on Governor Newsom's Promise of 1,200 Tiny Homes for Homeless Californians

In March 2023, Governor Gavin Newsom announced an ambitious plan to address California's homelessness crisis by providing 1,200 tiny homes to cities including Sacramento, San Jose, Los Angeles, and San Diego County. This initiative aimed to move people from encampments to stable living conditions quickly. However, more than a year later, the project has faced significant delays, and no tiny homes have been occupied.

Vendor Frustrations and Delays

Irontown Modular, one of the six selected vendors, expressed frustration over the lack of orders. Kam Valgardson, the general manager, highlighted the gap between promised funds and actual support for the homeless. Delays have been attributed to issues in funding and the ability of local governments to find suitable locations for the homes.

State and Local Government Challenges

The state has partially blamed local governments for the delays, yet even where local leaders approved project sites promptly, tiny homes have not materialized. Communications from the governor’s office remain exempt from public records, adding to the uncertainty about specific hold-ups. Despite these challenges, the state has started construction on the Sacramento site and provided funding to other cities to purchase tiny homes.

The March 2023 Announcement

Governor Newsom made his announcement at Sacramento’s Cal Expo, supported by local officials. The plan involved the California National Guard preparing and delivering the homes, with Los Angeles, Sacramento, San Jose, and San Diego County designated to receive specific numbers of homes.

Changes in Project Execution

By October 2023, the state had contracted six companies for the tiny homes. However, the plan shifted from state delivery to providing cities with cash grants to order homes themselves, leading to unexpected costs for cities like San Jose. This city, for example, found the grants insufficient to cover their desired units with en suite bathrooms.

Space and Implementation Issues

Finding space for the tiny homes has been a significant challenge. Sacramento’s initial plan to use Cal Expo was scrapped, with new sites on Stockton Boulevard and Watt Avenue identified. San Diego County only recently approved a location and still has preliminary steps to complete before purchasing the homes.

Progress and Setbacks

Of the four cities, Sacramento has made the most progress, with 155 tiny homes purchased and infrastructure work beginning after a weather delay. Los Angeles has yet to finalize locations, highlighting ongoing difficulties in implementing the project.

Expanding the Reach

Newsom’s administration allowed other cities to use their own funds to buy from the six approved vendors without a lengthy proposal process. However, no orders have been placed through this process, largely due to funding challenges and insufficient state promotion of the initiative.

Vendor Experiences

Vendors faced significant hurdles securing state contracts, including designing new products to meet strict requirements. Despite these efforts, companies like AMEG and Irontown Modular have yet to receive orders, expressing readiness and frustration over the stalled progress.

The tiny home initiative, intended to be a swift solution to homelessness, remains mired in logistical and bureaucratic challenges. While some progress has been made, significant hurdles must be overcome to realize the promise of providing stable housing for California’s homeless population.