By Jenna Abbott, Executive Director
If you’ve been wondering what’s going on with the Governor’s reorganization of the Business, Consumer Services, and Housing Agency (BCSH), you’re not alone. It’s moving forward—but updates have been sparse, and many of us are eager to understand what this means for our work in affordable housing.
Here’s what we know so far.
The state is splitting BCSH into two separate agencies:
- California Housing and Homelessness Agency (CHHA) will take on everything related to housing, homelessness, and civil rights.
- Business and Consumer Services Agency (BCSA) will focus on consumer protection, licensing, and regulatory enforcement.
This change is meant to streamline operations and give housing and homelessness issues the focused attention they deserve. The reorganization officially began in July 2025, and BCSH in its current state will be fully dissolved by July 1, 2026.
One of the most important developments that we’ve been tracking is the creation of the Housing Development and Finance Committee (HDFC). This committee will be responsible for coordinating affordable rental housing finance across CHHA departments. That means:
- A single application and award process for housing funding contained within what is now HCD.
- Aligned asset management across departments.
- Public meetings where program guidelines and awards will be discussed and granted.
- Oversight of key programs like MHP and MIP.
This could be a game-changer for developers and advocates who’ve long struggled with fragmented funding processes and overlapping compliance requirements.
While the structure is taking shape, we’re still waiting on details about how the HDFC will operate day-to-day, how stakeholder input will be incorporated, and what kind of transition support will be available. There’s also no formal task force announced yet, but the HDFC itself will function as a coordinating body with an executive director and staff.
From the beginning, CCAH has generally supported the reorganization as we believe it could lead to more efficient funding, better coordination, and stronger alignment across housing programs. But it also means change—and with change comes uncertainty. We’ll be keeping a close eye on how this unfolds and advocating for transparency, stakeholder engagement, and continuity in funding and compliance.
Your voice will be critical in shaping how this new agency serves our sector and we want to hear from you. What do you know about what’s going on with the reorg? Have you been part of any discussions about what the new entity will look like or consulted as an expert? What questions do you have? Let us know and we will consolidate what we find out from you and others into an updated post here in a few weeks.