Housing the Homeless Warning: The Unspoken ‘Catch’ to Prop H on the November 8 Ballot

But that's only half of it. A second financing mechanism, likely some form of additional tax, will be needed to provide for services for the newly-to-be-housed homeless. That measure may wind up on the March, 2017 ballot. And that’s the catch – Prop H is just the beginning. 

Experts like the U.S. Department of Housing and Urban Development and the city’s Homeless Services Authority claim that housing the homeless first and then providing services is more effective at resolving homelessness than providing services without guaranteed housing. But in order to follow that model, there may be another shoe dropping in the form of a sales tax increase or excise tax in March. 

What will definitely not come is any help from Governor Brown, who, this summer, declined to call the homelessness crisis a “state of emergency” that qualifies it for access to the “rainy day fund.” The Governor also turned down an attempt for the legislature to create a “Robin Hood” tax that would have taxed millionaires, with the proceeds going to benefit the homeless. 

Now, just a slice of Los Angeles -- a city where about half the residents are renters and not residential or commercial property owners -- will be asked to get the ball rolling on housing the homeless. If Prop H passes, they will be the ones to finance it. If the measure is voted down, there will be no financing plan and then it will back to the drawing board. We are so far past any type of Plan B, that something truly creative would be needed. 

Some facts and figures were assembled to put this bond measure into context, and now the city’s chief legislative analyst has provided a situational analysis.  It shows that a recent count of homeless individuals by the Los Angeles Homeless Services Authority determined that there are approximately 26,000 homeless people in Los Angeles and that, they add, is a growth of 11% in the past year. The major factors contributing to homelessness are the lack of affordable housing, low vacancy rates and rising rents. 

To offset this, the analyst continues, a bond (Prop H) is on the November ballot that will address the results of the Comprehensive Homeless Strategy which the City adopted in February. This strategy, created after extensive analysis and working in cooperation with the County of Los Angeles and the Los Angeles Homeless Services Authority, as well as the non-profit community, determined that 13,000 units of new housing, including 10,000 units of supportive housing, are needed at an estimated cost exceeding $1 billion. 

If approved, this proposal will authorize the City to issue general obligation bonds in the amount of $1.2 billion to develop housing and facilities for the homeless and affordable housing for those at risk of homelessness, as follows: 

• Supportive housing or units for individuals and families who are homeless or chronically homeless and (1) extremely low income, or (2) very low income, as defined by HUD for the County of Los Angeles; 

• Temporary shelter facilities, storage facilities, showers and other facilities to be used by the City, other public entities, non-profit entities and/or private entities to provide supportive services or goods to, or otherwise benefit, those who are homeless, chronically homeless or at risk of homelessness; 

• Affordable housing or units, including veterans housing, for individuals and families who are (1) extremely low income, (2) very low income and/or (3) low income, as defined by HUD for the County of Los Angeles, including individuals and families who are not currently homeless but are at risk of homelessness; provided, however, that not more than 20% of general obligation bond proceeds shall be used for such purposes; 

• Associated infrastructure and landscaping, including utilities, sidewalks and streets to be used in connection with the housing units and other facilities described above; 

• Bonds will be issued and expended in accordance with an annual allocation plan; 

• Proceeds will pay for costs associated with acquiring and improving real properties; 

• Bond proceeds will not be used to finance services or operations, and will not be used to replace existing sources of funds dedicated to develop similar supportive and affordable housing or facilities that provide homeless services. 

This measure will require:

• Preparation of an annual plan that prioritizes funding for supportive housing and facilities and the necessary bond issuance to finance those developments; 

• Establishment of Citizens Oversight and Administrative Oversight Committees to monitor the bond program; 

• Annual financial audits which will be available to the public; 

• A two-thirds “yes” vote on November 8 to pass. 

This bond, Prop H, will not provide funding for services such as mental health treatment, health care, drug and alcohol treatment, or education and job training that may be provided by the City, other public entities, non-profit groups and/or private entities. 

It cannot be stressed enough: this bond measure is just part one of what will need to be a two-part financing plan. Part one is housing (November election) and part two is more supportive services (possibly the March election.) 

As County Supervisor Mark Ridley-Thomas -- one of the most vocal and hard-working politicos addressing the homeless crisis, both here and in Sacramento -- told CityWatch, "Housing with supportive services provides an effective one-two punch in the fight to end homelessness." 

Marking your ballot “yes” on November 8 is just the beginning, but it’s a great first step that could bring some clarity and the start of a possible solution to what has been an intractable problem.

(Tim Deegan is a long-time resident and community leader in the Miracle Mile, who has served as board chair at the Mid City West Community Council and on the board of the Miracle Mile Civic Coalition. Tim can be reached at [email protected].) Photo credit: The Intercept. Edited for CityWatch by Linda Abrams.