The Los Angeles City Council has voted unanimously to create nearly 13,000 beds for individuals experiencing homelessness by June 2027, responding to requirements from a federal lawsuit settlement.
In a decisive 14-0 vote on Tuesday, with Councilwoman Heather Hutt absent, the council approved a strategy to bolster homeless bed availability through time-limited subsidies.
This plan addresses the need to secure an additional 2,093 beds to comply with the terms of the L.A. Alliance Settlement.
Councilwoman Nithya Raman, chair of the Housing and Homeless Committee, noted, “Essentially, the CAO (City Administrative Officer) has proposed we fill this gap with time-limited subsidies, which is both cost effective and has excellent outcomes for participants. This is an approach that I support.”
The Housing and Homeless Committee reviewed and approved the plan last week, incorporating amendments such as a request for a cost analysis on existing homeless programs and recommendations for funding the proposed additional beds.
The proposal also calls for the establishment of more safe-parking zones to serve as respite sites for individuals living in their vehicles.
Raman emphasized the importance of this analysis to ensure prudent spending and the sustainability of housing solutions amid anticipated funding cuts at both state and federal levels.
She expressed her concerns in a letter to L.A. County officials, urging them to adopt a similar approach as they work on their Measure A homeless spending plan.
“To cut these beds without asking these questions would be a disservice for housed and unhoused residents alike,” Raman remarked.
Councilwoman Ysabel Jurado, representing downtown neighborhoods, echoed Raman’s sentiments, highlighting the plan’s flexibility but raising concerns about its long-term sustainability.
“If we’re creating time-limited placements without a plan for what happens after two years, especially for residents on fixed incomes, we’re simply kicking the can down the road,” Jurado warned.
Councilman Bob Blumenfield pointed out that the plan allows officials the option to revisit it and explore creative solutions for families on the brink of homelessness.
“If we use TLS properly, we could actually extend the time of the TLS using shared housing and other creative solutions,” Blumenfield stated.
Councilwoman Monica Rodriguez suggested that having a reliable partner to help administer the program would be beneficial.
The Los Angeles Homeless Services Authority currently manages several of the city’s contracts with homeless service providers and programs.
Rodriguez stressed the importance of focusing on the increasing number of families facing homelessness.
“We have an obligation to have comprehensive conversations about the solutions that we’re deploying and ensuring that we have external partners that are actually effective and transparent about the use of our taxpayer dollars in achieving these goals,” she said.
According to a report from CAO Matt Szabo, as of June 30, the city had 7,440 beds available, with an additional 3,776 beds slated to come online soon, totaling 11,216 beds.
If any of these beds are removed for any reason, replacement units will be essential.
To address this potential shortfall, Szabo proposed a plan that includes 130 non-congregate beds, 1,800 time-limited subsidies, and 200 recreational vehicle time-limited subsidies, bringing the total to 2,130 new beds.
Szabo highlighted that time-limited subsidies are a cost-effective option, costing roughly $24,309 per year, in stark contrast to the millions often spent on constructing Tiny Home Villages, modular residential units, or leasing motels and hotels for temporary shelter.
City officials have allocated $29.2 million for bed funding as part of the L.A. Alliance Settlement, with an additional $8.021 million anticipated for the 2025-26 fiscal year to support the required beds.
Future costs are projected to rise, with estimates of $53.8 million for the 2026-27 fiscal year and nearly $29.6 million for the 2027-28 fiscal year.
The case leading to this settlement began in March 2020 when the L.A. Alliance—a coalition of concerned business owners and residents—filed a complaint in federal court against the city and Los Angeles County, claiming they were not adequately addressing homelessness.
In June, U.S. District Judge David Carter ruled that the city had failed to fulfill its obligations under the settlement agreement and demanded an updated plan that outlined how the city would achieve 12,915 beds for homeless residents within a two-year timeframe.
Carter criticized the city for its lack of cooperation and responsiveness, suggesting there was a reluctance to provide necessary documentation unless ordered by the court or prompted by media inquiries.
The judge had previously considered appointing a receiver to enforce compliance with the settlement but opted against it, describing such a measure as a last resort.
Instead, Carter instituted a monitor to oversee compliance and ensure accountability, tasked with asking tough questions on behalf of Los Angeles residents.
As the council moves forward with initiatives to enhance the effectiveness of homeless services and manage public funding, the focus remains on bridging the gap between desired and available resources for those in need.
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