LA Holds $177M in Homeless Prevention Funds
Los Angeles is holding onto $177 million in funds meant for homeless prevention programs. The delay is reportedly due to a late report and city concerns over potential lawsuits, stalling aid distribution.
The $177 million in homeless prevention funds originates from Measure ULA, a voter-approved "mansion tax" on high-value property sales in Los Angeles. This revenue stream, which has generated over $1 billion since its inception, is intended to fund affordable housing and homeless prevention services. The delayed funds are specifically earmarked for the Stay Housed LA program, a joint effort by the city and county that provides legal services and eviction defense for tenants. The Los Angeles City Council postponed the vote to allocate the funds, citing a late report from the City Attorney's Office and concerns that two of the four organizations set to receive the money have previously sued the city over its homelessness policies. The vote was initially delayed for a week until March 10, creating uncertainty around the program's future. Housing advocates have stressed the urgency of the situation, as the current contract for Stay Housed LA is set to expire on March 31. A failure to approve the funding could lead to an interruption of services that have assisted tens of thousands of tenants. Since its inception, the program has provided legal aid to 24,501 households, with full legal representation for 5,718 tenants, and has helped 55% of represented tenants remain in their homes. The groups identified to receive a portion of the $177 million include the Legal Aid Foundation of Los Angeles (LAFLA), SAJE (Strategic Actions for a Just Economy), and the Southern California Housing Rights Center. The controversy surrounds prior legal actions taken by organizations like LAFLA, which recently won a court ruling that blocked the city's plan to remove inoperable RVs from streets. This has led to a proposal requiring organizations to disclose any litigation against the city before being awarded contracts.