Governor Signs the Interim Housing Act, Giving Cities and Counties Proven Tools to Address Homelessness

The Interim Housing Act fast tracks the building of interim housing and scales up efforts to bring people indoors and save lives 

Sacramento, CA—Today Governor Gavin Newsom signed into law the Interim Housing Act (SB 1395) authored by Senator Josh Becker (D-Menlo Park). This bill addresses California’s housing and homelessness needs by expanding access to interim housing on a statewide level. 

California has the fourth highest rate of homelessness and the highest rate of unsheltered homelessness in the nation. Despite concerted efforts to increase housing production, California’s budget, land, and zoning limitations inhibit sufficient permanent housing construction in the near term. As a consequence, California’s population experiencing homelessness reached a record 181,399 individuals in 2023, with 67 percent being unsheltered, and will continue to grow without significantly increasing housing production.

SB 1395 will encourage the development of interim housing by achieving the following:

  • Clarifying that relocatable, non-congregate interim housing is eligible for streamlined zoning, thus reducing construction time and costs; 
  • Empowering local governments who want to build interim housing by cutting red tape and expediting approvals (CEQA expansions for Low Barrier Navigation Centers and Shelter Crisis Act projects); 
  • Extending the sunset for existing streamlining authorities – Shelter Crisis Act and Low Barrier Navigation Centers – to provide locals more assurance that they can use existing tools to address our homelessness crisis beyond 2026; and  
  • Freeing up state funding for interim housing. 

“Interim housing is the missing rung on the ladder to permanent housing, and with the Governor’s signature, the Interim Housing Act will make available statewide a proven local housing strategy, giving local governments a new tool to address the homelessness and housing crises,” said Becker. “It will lead to more housing options and significantly increase the inventory, which will put a roof over the heads of our unhoused neighbors faster so that they can get back on their feet and on track towards permanent housing.”

“California just made it easier than ever for local governments to stand up the interim housing sites that have helped San Jose achieve a 14% reduction in unsheltered homelessness over the last two years,” said San Jose Mayor Matt Mahan. “We can now get more people indoors faster and create a better quality of life for everyone — not just in my city, but in all California cities. It’s this kind of innovative policy authored by Senator Becker and signed into law by Governor Newsom that will allow us to end the era of encampments statewide.”

“SB1395 sends a very strong message from the state to local municipalities: we want you to treat unsheltered homelessness as the emergency that it is and bring people indoors at scale. DignityMoves is thrilled to see California embracing innovative interim housing as a solution to end the humanitarian crisis on our streets,” Said Elizabeth Funk, CEO of DignityMoves.

“Today, California sent a message that the time has come to bring people indoors, save lives, and restore access to public spaces” said Adrian Covert, Senior Vice President of Public Policy at the Bay Area Council. “The Interim Housing Act eliminates red tape and encourages local governments to prioritize and scale the interim housing needed to end the encampment crisis. We thank the leadership of Senator Becker for authoring, the legislature for passing, and Governor Newsom for signing SB 1395 into law.”

“We need a comprehensive and compassionate response to homelessness in California that can deliver results. Interim supportive housing is a key part of that response that gets people living outdoors and in makeshift and dangerous encampments into safe and secure conditions expeditiously,” said Michael Lane, State Policy Director for SPUR. “SB 1395 will allow attractive and cost-effective interim housing communities to be built in a matter of months and rapidly provide decent homes for people experiencing homelessness.”

SB 1395 is sponsored by San José Mayor Matt Mahan, Dignity Moves, the Bay Area Council, and the San Francisco Bay Area Planning and Urban Research Association (SPUR), and is strongly supported by the Mayors of San Francisco, San Diego, Fresno, Long Beach, Bakersfield and Oakland. It takes effect on January 1, 2025.