City Council

(15) 23-1022-S37 CD 4 GOVERNMENT OPERATIONS COMMITTEE REPORT relative to authorizing the Department of General Services (GSD) to negotiate and execute a ground lease agreement with L&R Construction, Inc. (L&R Construction), and a sublease agreement with People Assisting the Homeless (PATH), to operate a bridge housing facility, with 26 family units, at 3061 Riverside Drive in Council District Four (CD 4). Recommendations for Council action: 1. FIND, pursuant to Los Angeles City Charter Section 371(e)(10) and Los Angeles Administrative Code Section 10.15(a)(10), that the use of competitive bidding would be undesirable and impractical for this contract: a. PATH has operated as a trusted partner of the City at this location, providing essential housing and supportive services. b. PATH’s continued operation ensures stability for vulnerable populations and avoids service disruption, which could result from transitioning to a new provider; its deep-rooted community engagement, proven track record, and established infrastructure make them uniquely qualified to continue providing these critical services at this site. 2. AUTHORIZE the GSD to negotiate and execute a ground lease agreement based on the revised terms and conditions with L&R Construction and a sublease with PATH for the use of the interim housing site located at 3061 Riverside Drive Los Angeles, CA 90027 under the terms and conditions as substantially outlined in the August 5, 2026 Municipal Facilities Committee (MFC) report, attached to the Council File. Fiscal Impact Statement: The MFC reports that there is no immediate impact to the General Fund as a result of the recommendations in the August 5, 2026 MFC report, attached to the Council File. The Fiscal Year (FY) 2025-26 Fourth Homelessness Funding Report (Council File No. 23-1022-S29) and the FY 2026- 27 Annual Homelessness Funding Report (Council FIle No. 23- 1022-S33), approved by the Mayor and Council on May 8, 2026, and June 8, 2026, respectively, allocated a total of approximately $1.3 million in Homeless Housing, Assistance Prevention grant funds to support operations at this site. The FY 2026-27 Annual Homelessness Funding Report allocated $419,430 in HHAP grant funds to support leasing costs through June 30, 2027. There is a potential future impact to the General Fund relative to supporting the lease once the HHAP grant funds are depleted or the grant expenditure authority expires.