The mayor of a middle-class Los Angeles County suburb said the city stands by its moratorium on homeless shelters and supportive housing even after facing state sanctions Thursday.

California’s housing department revoked approval of the state-mandated housing plan for Norwalk, a city of just over 100,000 people with a homeless population of at least 200 according to county data. The move — the latest escalation of Gov. Gavin Newsom’s pressure campaign on cities to help solve the housing crisis — means Norwalk could lose eligibility for state housing and homelessness grants, and be forced to approve affordable housing projects even if they conflict with city zoning.

The city council passed the temporary but sweeping ban in August, in the process quashing a county effort to resettle dozens of people living in encampments to a local hotel. After the council doubled down on the ban last month, extending it through August 2025, Newsom clapped back.

“It’s beyond cruel that Norwalk would ban the building of shelters while people are living on the city’s streets,” Newsom said in a statement today.