News Summary
Los Angeles is advancing a significant strategy to combat homelessness, following city council approval to meet court-ordered deadlines. With costs for motel accommodations estimated above $120,000 annually per bed, the city faces a staggering financial burden. The Housing and Homelessness Committee has backed a report detailing financial obligations stemming from a lawsuit settlement, emphasizing gaps in bed availability and looming deadlines. Despite a proposed financial commitment of $112.6 million over the next few years, funding remains uncertain amid budget cuts and management issues, raising concerns about the effectiveness of these initiatives.
Los Angeles is moving forward with a costly plan to tackle homelessness, following the city council’s recent approval aimed at meeting court-ordered goals by June 2027. Amid mounting expenses, taxpayers are facing staggering costs, with some motel accommodations exceeding $120,000 per bed annually.
On September 25, 2025, the Housing and Homelessness Committee endorsed a report from the City Administrative Officer (CAO), which details the city’s financial obligations to comply with a settlement cemented by the LA Alliance for Human Rights. This settlement arose from a 2020 lawsuit addressing the management of homeless encampments and was officially approved by U.S. District Judge David O. Carter in June 2022. Judge Carter has since maintained oversight to guarantee compliance and accountability.
As of June 30, 2025, there are currently 7,440 open beds available for the homeless, with an additional 3,776 beds under construction, resulting in a total of 11,216 beds available. However, there remains a shortfall of 1,699 beds, which could potentially widen to 2,093 due to delays in various projects. In response to criticism pertaining to inconsistent reporting and unmet deadlines, Judge Carter has mandated the submission of an updated plan by October 3.
The CAO’s report reveals that delays in addressing homelessness result in high costs: motel programs have an average annual cost of $83,950 per bed, while specific facilities like Marina 7 in Venice can reach $116,469, and The Deluxe in Central Los Angeles pushes costs to $124,830. Larger “A Bridge Home” shelters average approximately $42,377 per bed per year, with smaller sites costing around $50,155. Meanwhile, Tiny Home Villages vary in construction costs from $53,713 to $85,944 per bed, with A Bridge Home facilities averaging $72,069 per bed annually.
Contrastingly, two-year time-limited subsidies (TLS) for rental vouchers amount to $48,618 over the two-year period, or $24,309 annually per person. This approach has been effective, resulting in a successful transition into permanent housing for 67% of program participants. Out of the 2,130 proposed interventions, 2,000 focus on these subsidies, while only 130 are intended to create new interim or permanent housing units.
The forecasted financial commitment for homelessness initiatives amounts to a total of $112.6 million over the next three fiscal years. Notably, some elements of this funding remain unfunded and uncertain, as the city has seen its allocation from the state’s Homeless Housing, Assistance, and Prevention (HHAP) program drop by $20.7 million from Round 5 to Round 6, with no assurance of additional funding rounds. Additionally, the newly implemented county sales tax Measure A will provide $133.4 million this year, though several limitations will restrict its usage to legal services and rental assistance.
Judge Carter’s frustration over the city’s slow response to the homelessness crisis has prompted the appointment of a court-monitoring official. The LA Homeless Services Agency has faced increased scrutiny due to mismanagement issues and failures to audit spending appropriately. Recent proposals to enhance internal audit processes within the LA Homeless Services Authority (LAHSA) have faced delays, further complicating oversight efforts.
Recent external audits have revealed severe mismanagement regarding contracts totaling hundreds of millions of dollars, alongside tracking errors for service providers. The LAHSA has consistently failed audits in recent years. In a structural shift, a new county homelessness department will take over several responsibilities from LAHSA in the coming year.
Current budget cuts totaling nearly $92.7 million this fiscal year are impacting critical services and programs, creating challenges for time-limited subsidy initiatives. Furthermore, funding constraints at both state and federal levels are increasing pressure on homeless initiatives, potentially hampering future efforts to address homelessness effectively.
In contrast, nearby San Diego has made strides in reducing street homelessness by 14% compared to two years ago, highlighting the varying degrees of success across different regions.
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Additional Resources
- Santa Monica Daily Press
- CBS News
- LAist
- Los Angeles Times
- My News LA
- Wikipedia: Homelessness in the United States
- Google Search: homelessness in Los Angeles
- Google Scholar: homelessness housing policy
- Encyclopedia Britannica: homelessness
- Google News: Los Angeles homelessness
Author: STAFF HERE HOLLYWOOD
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