Los Angeles Is Squandering $1.2 Billion While Homeless Face a ‘Spiral of Death’

“Five years after Los Angeles voters approved a $1.2 billion bond measure and a countywide sales tax hike to raise another estimated $355 million annually to solve its homelessness problem, there are more people living and dying on the streets than ever before.

Many of these men and women are both frequent targets and perpetrators of violence.

Mayor Eric Garcetti (D), who did not respond to our interview request, has partially blamed this failure on the pandemic, which slowed new housing construction and limited shelter capacity. It’s true that COVID caused a surge in homelessness, but the city’s plan was already failing.”

“The centerpiece of L.A.’s plan was to spend the $1.2 billion raised through Proposition HHH to build 10,000 supportive housing units over a decade. Even if the government were able to pull that off, it would merely put a dent in the problem in a city where more than 30,000 people are living on the streets and sidewalks according to the 2020 homelessness count.

Five years into the 10-year plan, just 14 projects are in service. Of the promised 10,000 supportive housing units, the city has completed fewer than 700.

It would take more than 30 years to house all of the people currently homeless in L.A. county at that pace, according to a federal court order.”

A Canadian study gave $7,500 to homeless people. Here’s how they spent it.

“The study, conducted by the charity Foundations for Social Change in partnership with the University of British Columbia, was fairly simple. It identified 50 people in the Vancouver area who had become homeless in the past two years. In spring 2018, it gave them each one lump sum of $7,500 (in Canadian dollars). And it told them to do whatever they wanted with the cash.”

“Over the next year, the study followed up with the recipients periodically, asking how they were spending the money and what was happening in their lives. Because they were participating in a randomized controlled trial, their outcomes were compared to those of a control group: 65 homeless people who didn’t receive any cash. Both cash recipients and people in the control group got access to workshops and coaching focused on developing life skills and plans.

The results? The people who received cash transfers moved into stable housing faster and saved enough money to maintain financial security over the year of follow-up. They decreased spending on drugs, tobacco, and alcohol by 39 percent on average, and increased spending on food, clothes, and rent, according to self-reports.”

Causes and Solutions to Homelessness (Sources)

How Can the U.S. End Homelessness? Alana Semuels. 4 25 2016. The Atlantic. https://www.theatlantic.com/business/archive/2016/04/end-homelessness-us/479115/ Here’s how Finland solved its homelessness problem 2 13 2018. Alex Gray. World Economic Forum. https://www.weforum.org/agenda/2018/02/how-finland-solved-homelessness/ Prevention Homeless hub. https://www.homelesshub.ca/solutions/prevention Homelessness Prevention and the Welsh Legal Duty: Lessons

California’s Government Has Turned Homelessness Into Big Business

“You might have noticed California is enduring housing and homeless crises. The market solution to housing shortages is simple: Government should reduce regulations, slow-growth restrictions, rent controls and fees that limit supply and drive up prices. Let builders build. Homelessness is a more complicated problem because homeless people often have addiction and mental-health issues, but more housing would help.

I can’t say exactly how it will work, just as I can’t say exactly how a molly bolt gets from the foundry in India to Home Depot in Sacramento. But I can tell you what won’t work—namely the policies our government now is championing. Gov. Gavin Newsom spent most of his recent State of the State speech detailing a blueprint for dealing with the “disgraceful” homeless situation, which involves more public spending and programs.”

“An investigation from this newspaper group found that a third of the apartments being built through the $1.2 billion Prop. HHH bond measure, which voters approved in 2016 to fund supportive housing, “will each cost more than $546,000, the median sale price of a condominium in Los Angeles.” The report found it “uncertain if the program will reach its goal of 10,000 new permanent housing units.”

I’d think it’s fairly certain the bond will run out of cash before its targeted numbers are met and city leaders will be back asking voters for more money. It’s also certain such projects will at best help a fraction of LA’s homeless. Some projects in Southern California have seen per-unit costs approaching $700,000. This is nuts.”