The Los Angeles County Board of Supervisors permitted a plan to maneuver lots of of tens of millions of {dollars} out of the area’s homeless companies company on Tuesday, regardless of warnings from L.A. Mayor Karen Bass about making a “massive disruption” within the area’s struggle towards homelessness.
On a 4-0 vote, the supervisors signed off on the technique to type a brand new county homelessness division with a price range that may virtually instantly exceed $1 billion. By July 2026, the supervisors will transfer greater than $300 million from Measure A, a half-cent gross sales tax, out of the Los Angeles Homeless Companies Authority, or LAHSA, and into the brand new county company.
Greater than 700 county employees shall be transferred to the brand new company by Jan. 1. Six months later, the brand new division will end taking over lots of extra workers from LAHSA, a joint city-county company that has been derided for years by metropolis council members, county supervisors and different officers.
County supervisors mentioned the adjustments will give them extra direct oversight, and in the end, better accountability, over the funds generated by the Measure A half-cent gross sales tax, which went into impact on Tuesday. That measure, which gives funding for an array of housing and homelessness companies, served as a substitute for Measure H, a quarter-cent gross sales tax permitted in 2017.
“This moment is about the county taking the dollars that taxpayers have entrusted to us and investing them in what works,” mentioned Supervisor Lindsey Horvath, who spearheaded the plan.
Supervisors mentioned they had been following the suggestions of a blue ribbon fee, which referred to as in 2022 for the creation of a brand new county homelessness group and the streamlining of LAHSA’s duties. In addition they voiced frustration over a pair of stinging audits that sharply criticized LAHSA’s oversight, or lack of it, over its contracts and packages.
The vote was a severe defeat for Bass, who had argued that the adjustments would consequence within the creation of one more forms, whereas diverting power away from efforts to maneuver folks indoors. With an enormous chunk of its price range slated to vanish, LAHSA’s long-term future is now in query.
Hours earlier than the assembly, Bass and Metropolis Councilmember Nithya Raman, who heads the council’s homelessness committee, despatched the supervisors a letter warning that the adjustments would in the end deprive town of “essential resources.”
“This action would create a monumental disruption in the progress we are making and runs the serious risk of worsening our homelessness crisis, not ending it,” they wrote.
5 council members — Bob Blumenfield, Ysabel Jurado, Tim McOsker, Katy Yaroslavsky and Raman — confirmed up in particular person to ship an identical message, saying they feared the county was delivering a deadly blow to LAHSA, one that may undermine their very own efforts to fight homelessness. Town is already in a monetary disaster, dealing with a price range shortfall of just below $1 billion.
Raman mentioned she and different council members had campaigned for Measure A, encouraging L.A. residents to extend the gross sales tax.
“I believe strongly that these voters may not have supported it if they knew the dollars would be moved into the county without input and partnership from the city,” she mentioned.
For LAHSA, which was shaped in 1993 as a part of an effort to make sure that town and county work extra collaboratively on homelessness, the choice will produce a monetary earthquake. The county gives the most important share of LAHSA’s $875 million annual price range — 40%, or about $348 million, in accordance with the company’s web site. The overwhelming majority of the county’s funds would go to the brand new company, in accordance with LAHSA officers.
Horvath mentioned the county, quickly to be flush with Measure A income, can’t afford to proceed the established order. Combining homelessness packages from a number of county departments will “fundamentally transform oversight and accountability,” she mentioned.
The brand new company shall be modeled after the county Division of Well being Companies’ Housing for Well being program, which Horvath referred to as the “the most successful program across anything being done in the county to date.” That initiative, she mentioned, has a excessive success price of shifting folks into everlasting housing and maintaining them housed.
Housing for Well being started in 2012 to deal with homeless sufferers who rotated via the county’s public hospitals, mentioned Sarah Mahin, this system’s director, in remarks to the supervisors Tuesday. Since then, it has expanded to greater than 600 employees and an $875 million annual price range.
This system consists of homeless outreach groups, monetary help for tenants vulnerable to eviction and funds for roughly 3,200 interim housing beds.
“We can do big things — things that work,” Horvath mentioned. “Housing for Health works, and the Board of Supervisors created it.”
Donyielle Holley, homeless packages supervisor for town of Pomona, welcomed the adjustments, saying they may be certain that the homeless companies system is “responsible to the needs of all stakeholders.”
“The county will be more accountable to the voters who passed Measure A,” she mentioned.
However Supervisor Holly Mitchell, whose South L.A. district stretches from Koreatown to Carson, warned her colleagues that they had been shifting too rapidly — and with out a clear technique to make sure the substitute company will carry out higher than LAHSA.
Mitchell tried to postpone the beginning date for the brand new company, solely to be outvoted. She abstained from voting on the proposal itself.
Va Lecia Adams Kellum, LAHSA’s chief govt, tried to spell out her company’s accomplishments over the previous two years, solely to have her mic minimize off partway into her remarks. Supervisor Kathryn Barger gave her 90 seconds, 30 greater than different members of the general public.
Nathaniel VerGow, deputy chief packages officer at LAHSA, informed the board that he has spent his total skilled profession working to finish homelessness — and was open to “exploring any efforts to meaningfully move the needle.”
“However, what I don’t understand is the rush of the proposed strategy of moving all services with no real plan in place,” he mentioned. “A timeline is not a plan.”
Final summer time, LAHSA reported that “unsheltered” homelessness — these residing on the road — declined by about 5% throughout the county and by greater than 10% within the metropolis of L.A. LAHSA executives have promised to disclose extra progress within the coming weeks.
Critics say progress has been far too sluggish, notably when contrasted with the billions of {dollars} which were allotted. One audit, commissioned by U.S. District Decide David O. Carter, discovered that LAHSA lacks adequate monetary oversight to make sure that its contractors ship the companies they’re paid to supply, leaving the company susceptible to waste and fraud.
Final week, Adams Kellum despatched Carter a letter saying her company is working to enhance its operations. Carter, who has been overseeing a case involving homelessness companies, responded by calling these guarantees “meaningless.”
Barger mentioned she and her colleagues are “not trying to get rid of LAHSA.” And she or he promised that accountability for the brand new homelessness division will relaxation with the 5 county supervisors.
“I can only speak for myself, having been in Judge Carter’s courtroom last week — it can’t get any worse,” she mentioned.
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