The Los Angeles City Council recently approved an increase in the rate it pays for services at many homeless shelters to prevent nonprofit contractors from withdrawing from over a dozen sites. The new rate will be $80 per night, up from the previous range of $60 to $66, and will cover shelter beds starting on Jan. 1. This decision is expected to add $13 million to the budget, with most of the costs covered by a state housing grant.
The Greater L.A. Coalition on Homelessness, representing over 50 nonprofit service providers, lobbied for this increase to ensure continued services at interim housing sites. Some providers threatened to stop serving these sites without a significant rate increase. While some council members were concerned about depleting state funds, the majority voted in favor of the $80 rate.
Despite this progress, some nonprofit groups serving homeless families still face financial challenges. Three facilities run by the nonprofit group PATH are at risk of being shut down due to inadequate funding. PATH’s CEO stated that the rate increase may not be enough to save these facilities, emphasizing the need for additional funding sources.
The council plans to implement larger rate increases on July 1 for the next budget year. These increases will reach $89 per night for larger facilities and $116 for smaller ones. These changes aim to increase oversight and accountability in shelter services, requiring more specific services for clients, such as weekly meetings with case managers.
While some council members expressed concerns about accountability and data transparency, Mayor Karen Bass’s office emphasized the importance of increasing the nightly bed rate to support homeless service providers. The focus is on finding long-term solutions to homelessness and ensuring that nonprofit organizations have the resources to help more people off the streets.
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