The city of Norwalk has agreed to repeal its ban on homeless shelters and will pay $250,000 toward new affordable housing developments to settle a state lawsuit, officials said Friday.

The city had prohibited shelters along with laundromats, payday lenders and other businesses that predominantly serve low-income residents.

The settlement, if approved by the court, also requires Norwalk to create an affordable housing trust fund and undergo ongoing state monitoring.

“The Norwalk city council’s failure to reverse this ban without a lawsuit, despite knowing it is unlawful, is inexcusable,” California Gov. Gavin Newsom said in a statement. “No community should turn its back on its residents in need — especially while there are people in your community sleeping on the streets. No city is exe

See Full Page