NORWALK, Calif. (CNS) -- The city of Norwalk has agreed to end its ban on homeless shelters after being sued by the state.

Norwalk will also pay $250,000 into a trust fund to develop affordable housing units.

The city had also prohibited laundromats, payday lenders and other businesses that predominantly served low-income residents.

Gov. Gavin Newsom accused Norwalk of turning its back on residents in need.

As part of the agreement, Norwalk will undergo state monitoring to ensure its under compliance.

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 on Friday.

The city had prohibited shelters along with laundromats, payday lenders and other businesses that

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