Inside Governor Newsom’s New Homelessness Strategy and CRE Industry Effects
As homelessness remains a challenge for the commercial real estate industry, Governor Gavin Newsom is urging cities to clear more encampments and is supporting the effort with billions in new grants.
With the recent Supreme Court’s Grants Pass v. Johnson ruling giving cities more power, places like Long Beach are already changing their approach.
What You Need to Know
Governor Newsom shared a statewide plan urging cities and counties to ban long-term camping and sidewalk blockages.
The state is offering $3 billion in grants for mental health care, outreach, and housing.
For the first time, a Democratic governor is offering a plan to manage encampments, following a Supreme Court ruling allowing cities to limit outdoor sleeping if shelter is available.
In Long Beach, the City Council is reviewing how it's using this new authority. Between July 2024 and February 2025, police gave out 346 citations, focusing on key areas and citywide issues. While not a long-term solution, the citations have helped with cleanups and connecting people to services.
The City plans to update its vehicle sleeping rules to meet legal standards while balancing enforcement with outreach and housing help.
How It Impacts You
For property managers and service providers, these changing policies affect daily operations and public image.
- More encampment enforcement could speed up cleanups around commercial buildings, especially downtown, improving access, appearance, and tenant satisfaction.
- More outreach and support programs could help you better engage with unhoused people near your properties, especially when past efforts haven’t worked.
- Property owners should keep up with their city’s plans. Enforcement alone can cause pushback or lawsuits, but balanced programs work better for long-term neighborhood stability.
- Working with local authorities and service providers is important. As rules change and enforcement grows, partnerships can make sure efforts are effective, legal, and supported by the community.
Stay Informed
As the state steps up encampment clearings with more resources, property managers should watch how their local areas apply these changes.
Follow BOMA on the Frontline for the latest updates on how homelessness is shaping the commercial real estate industry.
