Newsom’s $100 Million Tiny Home Fiasco: Where Are They?

A new report has found that Gavin Newsom has failed to deliver on one of his key plans for homeless Californians despite making some big promises. Here are the full details.

Governor Gavin Newsom’s Initiative

Governor Gavin Newsom’s big plan to help California’s homeless population is facing some major roadblocks. 

A Status Update 

Over a year ago, Newsom promised 1,200 tiny homes to cities like Los Angeles, Sacramento, San Jose, and San Diego County. Fast forward to today, and not a single one of those homes is up and running.

Overview of Newsom’s HHAP Program

Newsom’s Homeless Housing, Assistance, and Prevention (HHAP) program was supposed to use $2 billion to tackle the homelessness crisis head-on. 

Promise of 1,200 Tiny Homes

Part of that plan was to build 1,200 tiny homes across California. But here we are, over a year later, and there have only been around 150 tiny homes bought. So, what happened?

Initial Funding and Allocation

Initially, the state was supposed to provide the tiny homes directly. But then, the plan changed. Instead, the state decided to give cities the money to buy and manage the homes themselves. This has caused a lot of issues.

Challenges Faced by San Jose

Take San Jose, for example. They got $13.3 million from the state, but they need $22.7 million to actually build the homes. Mayor Matt Mahan said they asked for tiny homes with en-suites, which cost about three times more than tiny homes without – $18,900 compared to $55,350. Despite San Jose saying they’d gladly pay the difference, they’re still waiting for more initial support from the state.

Budgetary Constraints in Los Angeles

Los Angeles isn’t doing much better. They were given a $33 million budget, but nobody knows if that’s enough to cover the cost of building and installing the 500 tiny homes they were promised.

Location Challenges Across Cities

Apart from funding issues, securing suitable locations for these tiny homes has proven problematic. 

Struggles in Securing Suitable Sites

Sacramento planned to set up homes at Cal Expo – where Nesom made the initial announcement – but that fell through. Now they’re looking at new sites on Stockton Boulevard and Watt Avenue. 

San Diego County’s Approval Process

San Diego County took over a year just to approve a site in Spring Valley, and they still have to do soil testing and get community feedback before they can start building.

Transparency Issues with Newsom’s Office

To make things worse, Newsom’s office hasn’t been very transparent. 

Requests for Information Denied

Nonprofit News organization CalMatters tried to get information on what’s causing the delays, but their requests for communications between the governor’s office and local governments were denied. This has left many in the dark.

Blame Game

The state blames local governments for the delays, but even when local leaders quickly approve project sites, the tiny homes are still nowhere to be seen. This is part of what’s causing so many projects to stay in limbo.

Launch Event at Cal Expo

When Newsom first announced the tiny home plan, he set up a whole show at Cal Expo with sample tiny homes and support from local officials. 

Initial Plans for Home Delivery

The idea was simple: the state would buy the homes, and the California National Guard would deliver them free of charge. Cities were supposed to get their homes without much hassle – but things clearly haven’t gone as planned.

October 2023 Update on Progress

In October 2023, Newsom’s office finally provided an update, explaining they had contracted six companies to supply the tiny homes. Despite this progress, the state then decided to give cities cash grants to buy the homes themselves rather than buying the homes directly – which has caused most of the issues.

Vendor Orders and State Funds

The state tried to speed things up by letting other cities and counties buy tiny homes from the approved vendors without a long process. But none of these vendors have received orders. Some cities showed interest, but without state funds, they can’t move forward.

Progress Amid Setbacks

Despite all the setbacks, there has been some progress. Sacramento has started building infrastructure for its tiny homes, and completion is expected this fall. Los Angeles is working with the city council to approve potential sites for its homes.

Evaluation of Newsom’s Initiative

Newsom’s tiny home initiative was supposed to be a quick fix for California’s homelessness crisis, but it’s been plagued by funding issues, location problems, and a lack of transparency. 

Future Concerns 

Experts are worried that if the state doesn’t step up and provide more support, the dream of housing for thousands of homeless Californians will continue to drift further out of reach.

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The content of this article is for informational purposes only and does not constitute or replace professional financial advice.