The city of Norwalk is set to overturn its citywide ban on new homeless shelters as part of a settlement to end a state lawsuit, and it will create a housing trust fund for new affordable housing, the state's attorney general announced on Friday.

Norwalk city leaders are to repeal the moratorium on shelter and supportive housing at the next regularly scheduled city council meeting.

On August 6, 2024, the Norwalk City Council unanimously passed an urgency zoning ordinance imposing a 45-day ban, or moratorium, on new supportive housing. One month later, the state warned that the moratorium violated several laws, including the Housing Crisis Act.

Despite the warnings, the city council voted to extend the moratorium for 10 months and 15 days, leaving the ban on shelters in place. This led t

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