City Council

(16) 23-1022-S18\nHOUSING AND HOMELESSNESS COMMITTEE REPORT relative to\na 10 to 15 percent reduction in homelessness spending to meet the\nterms of the City’s Alliance Settlement Agreement.\nRecommendations for Council action:\n1. ACKNOWLEDGE cost savings in the amount of $7,859,723\nunder Category 1 for projects which will demobilize or begin\nramp down prior to July 1, 2027.\n2. APPROVE the following proposed Homelessness Cost Savings\nCategories and identify projects within each category for\nefficiencies:\na. Category 2: Sites with 50 Beds or Less, Utilizing $116 Bed\nRate\nb. Category 3: Sites with City-Funded Leases\nc. Category 4: Inside Safe Program Booking and Occupancy\nAgreements\nd. Category 5: Safe Parking Sites e. Category 6: Street\nStrategies\n3. INSTRUCT the City Administrative Officer (CAO), with the\nsupport of the Chief Legislative Analyst (CLA), Los Angeles\nHousing Department (LAHD), Los Angeles Homeless Services\nAuthority (LAHSA), and other relevant City departments, for\nprojects identified for efficiencies, to report back with data on\nproject outcomes and utilization along with potential\nalternatives, including coordination with the County for provision\nof County-appropriate services.\n4. INSTRUCT the General Manager, General Services\nDepartment (GSD), or designee, in coordination with the\nMayor’s Office, to renegotiate Inside Safe Program Booking and\nOccupancy Agreements to reduce the cost of the portfolio by 10\nto 15 percent, while ensuring no net loss of beds through June\n30, 2027.\n5. REQUEST LAHSA, in coordination with the Mayor’s Office, to:\na. Explore increasing capacity at Inside Safe Program sites\nthrough double occupancy, where feasible. b. Streamline the\nuse of leased rooms by reducing the number used for storage\nand other administrative services, where feasible.\n6. REQUEST LAHSA, when available, to prioritize eligible\nparticipants in City-funded interim housing, including the Inside\nSafe Program, for placement in housing secured through City-\nfunded Time-Limited Subsidy (TLS) programs.\n7. AUTHORIZE the CAO to make any technical changes or\nadjustments to the Homelessness Cost Savings Categories.\n8. INSTRUCT the CAO to report to Council with qualitative data on\nthe human impact of any programmatic cuts, in the categories\ndescribed in Recommendation No. 2 of the CAO report dated\nFebruary 3, 2026, attached to the file, that the Council may\napprove to achieve a 10 to 15 percent reduction in\nhomelessness spending.\n9. INSTRUCT the CAO and HR&A Advisors to present a plan\nbefore the Fiscal Year 2026-27 budget is finalized that\neffectuates maintaining interim housing capacity and efficacy\nwhile achieving cost savings by shifting from the City’s most\nexpensive interim housing interventions to less expensive,\neffective approaches.\nFiscal Impact Statement: The CAO reports that there is no immediate\nGeneral Fund impact as a result of the recommendations in its report.\nFinancial Policies Statement: The CAO reports that the approval of\nthe recommendations contained in its report complies with the City’s\nFinancial Policies.