City Council

(11)\n23-1022-S18\nHOUSING AND HOMELESSNESS COMMITTEE REPORT relative to\nproposed change to the services provided by the Time-Limited Subsidy\n(TLS) Program in relation to the Alliance Settlement Agreement\n(Alliance) Program; and associated increase in the annual TLS bed\nrate; and related matters.\nRecommendations for Council action, SUBJECT TO THE APPROVAL\nOF THE MAYOR:\n1. APPROVE the Los Angeles Homeless Services Authority’s\n(LAHSA) proposed TLS annual slot rate of $29,560 for the\nAlliance TLS Program, which reflects the following proportionate\ncosts:\na. $6,767 annual service costs per TLS slot\nb. $22,793 annual rental assistance costs per TLS slot\n2. APPROPRIATE up to $8,316,666 from the following accounts to\nHomeless Housing, Assistance, and Prevention Program Round\n4 (HHAP-4) Fund No. 66C/10, Account No. 1 0Y783, FC - 3\nRapid Rehousing and Housing Navigation:\na. $1,447,700 from Fund No. 66C/10, Account No. 10Y782,\nFC - 2 Skid Row\nb. $2,040,745.05 from Fund No. 66C/10, Account No.\n10Y784, FC - 4 Outreach, Hygiene, Prevention and\nSupportive Services\nc. $4,690,168.09 from Fund No. 66C/10, Account No.\n10Y786, FC - 6 Administrative Costs and Systems\nSupport\nd. $138,052.86 from Fund No. 66C/43, Account No. 43AC94,\nShelter Program\n3. APPROPRIATE up to $8,316,666 from Homeless Housing,\nAssistance, and Prevention Program Round 3 (HHAP-3) Fund\nNo. 65S/10, Account No. 10A780, Master Leasing to Fund No.\n65S/10, Account No. 10W741, FC-1 Interim Housing Operations\nand Capital Costs.\n4. APPROPRIATE up to $8,316,666 from HHAP-4 Fund No.\n66C/10, Account No. 10Y781, FC - 3 Rapid Rehousing and\nHousing Navigation to HHAP-4 Fund No. 66C/10, Account No.\n10A780, Master Leasing.\n5. APPROVE and APPROPRIATE up to $16,287,030 from HHAP-\n4 Fund No. 66C/10, Account No. 10A780, Master Leasing to the\nLos Angeles Housing Department (LAHD) Fund No. 66C/43, in\na new account entitled, "Alliance Time-Limited Subsidies" for\nthe following expenses:\na. $13,606,515 for the annual cost for 450 Alliance TLS\nProgram slots:\ni. $3,045,150 for service costs\nii. $10,256,850 for rental assistance\niii. $304,515 for LAHSA Administration\nb. $2,680,515 for approximately 89 additional TLS slot costs,\npending allocation\n6. AMEND and APPROVE Recommendation No. 6 contained in\nthe City Administrative Officer (CAO) report dated January 16,\n2026, attached to Council file No. 23-1022-S18, respectively, to\nread as follows:\nINSTRUCT the General Manager, LAHD, or designee, to\nexecute a new contract with Housing Operations and\nManagement, Inc. ("HOM, Inc.), based on LAHSA's\ncompetitively bid, "Time Limited Subsidy Financial Assistance\nProgram Agreement," with HOM, Inc. ("LAHSA/HOM\nAgreement") for the purpose of providing fiscal support for the\nAlliance TLS Program. The new contract will be for an amount\nup to $45,586,000 and will be for a term of commencing on\nMarch 1, 2026 and ending on June 30, 2026, however, said\nterm may be extended and the scope of work may be amended\nin accordance with extensions and amendments to the\nunderlying LAHSA/HOM Agreement.\n7. INSTRUCT the General Manager, LAHD, or designee, to\namend the Alliance Program contract (Contract No. C-141840)\nwith LAHSA to reflect increases for the following:\n​\na. Up to $13,534,000 for up to 2,000 Alliance TLS Program\nslots beginning March 1, 2026, through February 28, 2027\nb. Up to $1,354,000 for LAHSA administration at 10 percent\nof the service provider Alliance TLS Program allocated\nslots beginning March 1, 2026, through February 28, 2027\n8. AMEND and APPROVE Recommendation No. 8 contained in\nthe CAO report dated January 16, 2026, attached to the Council\nfile, respectively, to read as follows:\n​INSTRUCT the CAO, in coordination with the LAHD, the Chief\nLegislative Analyst, and HR&A Associates to create a pool of\nrent reasonable units, bulk landlord negotiation, and housing\nnavigation services to speed up lease up.\n9. AUTHORIZE the CAO to:\n​\na. Prepare Controller instructions or make necessary\ntechnical adjustments, including to the names of the\nSpecial Fund accounts recommended for this report, to\nimplement the intent of these transactions; and,\nREQUEST the Controller to implement these instructions.\nb. Prepare any additional Controller instructions to reimburse\nCity Departments for their accrued labor, material or\npermit costs related to projects in this report, to implement\nthe intent of these transactions; and, REQUEST the\nController to implement these instructions.\n10. INSTRUCT the CAO to report to the Housing and\nHomelessness Committee with an update on service\nreimbursements when available.\nFiscal Impact Statement: The CAO reports that there is no immediate\nGeneral Fund impact as a result of the recommendations in this report\nas it recommends using Homeless Housing, Assistance, and\nPrevention funding. There may be a potential future General Fund\nimpact of up to $21.6 million in Fiscal Year (FY) 2026-27 and $13.5\nmillion in FY 2027-28, if alternative funding sources are not identified.\nFinancial Policies Statement: The CAO reports that the above\nrecommendations in this report comply with the City’s Financial\nPolicies in that budgeted funds are being used to fund recommended\nactions.