LA Withholds $177M in Homeless Prevention Funds
Los Angeles is holding back $177 million in homeless prevention funding. The delay is reportedly due to a late report and concerns over potential lawsuits against the city, raising questions about its ability to execute its strategy to address the crisis.
The $177 million in question is designated for the Stay Housed LA program, which provides homeless prevention and eviction defense services. The funding is generated by Measure ULA, a voter-approved "mansion tax" on properties sold for over $5 million. This measure, formally known as the “Homelessness and Housing Solutions Tax,” was passed in November 2022 and applies to real estate transactions within the City of Los Angeles. The Los Angeles City Council has twice delayed the vote on distributing these funds to four community organizations. The primary reasons for the delay are a last-minute report from the City Attorney's Office and reservations from some council members about contracting with two organizations that have previously sued the city over its homelessness strategies. This has led to a broader discussion within the City Council about the city's contracting policies. A motion has been introduced that would require any organization to disclose if they are currently in litigation with the city before a contract can be finalized. Housing advocates are concerned about the delay, urging a vote before March 31 to prevent any interruption of services. The controversy over this funding is set against a backdrop of intense scrutiny of the city's management of homelessness funds. A court-ordered audit recently found that Los Angeles's homeless services are "disjointed" and lack sufficient financial controls, making the system vulnerable to waste. This audit was a result of a 2020 lawsuit filed by the L.A. Alliance for Human Rights, which alleged the city and county were failing to address the crisis effectively.
