Governor’s 2025 Budget Proposal

Governor Newsom highlighted the state's housing progress as part of his 2025 budget proposal. Under the Surplus Land Act of 2021, over 30,000 new units have been added to the housing supply, with more on the way.

The Governor’s Housing Accountability Unit has taken 540 actions to push projects forward and secured an additional 7,773 new units. Efforts to tackle homelessness are also in full swing, with the upcoming launch of a new accountability website to track housing, homelessness, and behavioral health data across counties.

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by Holly Fraumeni de Jesus

Political Consultant,

Lighthouse Public Affairs

Article Contributor: Jacqueline Woo, Manager, CA Legislative Analysis

California Legislature Convenes in Light of Wildfire Disasters, Focusing on Key Housing Themes

In Fall 2024, California Governor Gavin Newsom signed into law over 60 housing-related bills, most of which became effective January 1, 2025.

These new laws will likely shape housing outcomes in many ways, including accelerating housing production, strengthening housing law enforcement, facilitating the conversion of underutilized commercial and public lands for housing, addressing homelessness, and building more starter homes and Accessory Dwelling Units (ADUs). 

Read more for anticipated legislative themes in 2025 >



by Holly Fraumeni de Jesus

Political Consultant,

Lighthouse Public Affairs

Rising Housing Insurance Rates are Impacting Owners and Developers

Nearly every day since the recent wildfires in Los Angeles started on January 7th, 2025, the Governor has issued executive orders waiving fees, permitting and review requirements under the California Environmental Quality Act (CEQA) and California Coastal Act, and procedures to assist residents rebuild.

In the same spirit, Insurance Commissioner Ricardo Lara issued a mandatory one-year moratorium on insurance non-renewals and cancellations in areas affected by the Palisades and Eaton fires. The Assembly Speaker has also announced his intent to immediately introduce legislation that is intended to expedite rebuilding in these communities devastated by fires, protect displaced individuals from rent and price gouging, freeze new building codes and standards, and address the insurance crisis.

Read more to learn about what has been done regarding California's insurance challenges >



by Chul Gugich

Principal, Housing Team

LeSar Development Consultants

New Administration’s First Month Signals Shift in Approach to Housing and Homelessness

The new Trump administration ushered in new appointments and executive orders that both underscored the need for affordable housing and signaled a shift in approach towards housing and homelessness, despite being light on details. 

One of the executive orders signed by President Donald Trump on his first day in office referenced housing supply, calling for all executive departments and agencies to deliver “emergency price relief” that would lower the cost of housing and expand the housing supply. The order also requires agencies to eliminate unnecessary administrative expenses and “rent-seeking practices that increase healthcare costs” and cut counterproductive requirements that raise the costs of home appliances. The order stated that regulatory requirements alone account for 25% of the cost of constructing a new home. While the order has attracted attention from housing advocates and lawmakers, it lacks details on how it would accomplish its goals.

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by Pamela Kestner

Chief of Staff

Global Policy Leadership Academy

Biden-Harris Administration Awards $100M in Second HUD PRO Housing Grants

Note: Last week, the Trump budget office issued and then rescinded a memo freezing spending on federal loans and grants, sparking widespread confusion and legal challenges across the country. The LeSar team is monitoring this potential impact on PRO Housing and other Federal grants.

In January 2025, the Biden-Harris administration awarded $100M in HUD Pathways to Removing Obstacles to Housing (PRO Housing) grants to 18 jurisdictions across 15 states, building upon $85M awarded during the first round of this program. The HUD PRO Housing grants support communities that are actively taking steps to remove barriers to affordable housing, including barriers caused by outdated zoning, land use policies or regulations, lack of neighborhood amenities, and challenges to preserving existing housing stock. Of the 18 jurisdictions awarded, three were in California: the City and County of San Francisco ($7M), the City of Oakland ($7M), and the County of Sacramento ($2.7M).

Read more to learn about California-specific awards >



by Jacqueline Woo

California Legislative Analysis Manager

Global Policy Leadership Academy