Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Homelessness Preservation topic
No spam. Unsubscribe anytime.
LAHD to award remaining $4.9 million Pro Housing grant to stabilize three struggling permanent supportive housing projects
Summary
The Los Angeles Housing Department asked the committee to approve awards from a $4.9 million Pro Housing Incentive grant to a Micro Operational Reserve Replenishment Pilot to shore up three permanent supportive housing projects with multi‑year operating deficits; the committee approved the LAHD recommendations.
The Los Angeles Housing Department asked the Housing and Homelessness Committee on May 14 to award the remaining balance of a state Pro Housing Incentive grant—$4,900,000—to three permanent supportive housing (PSH) projects facing sustained operating deficits.
Hannah Levian, program staff from the Los Angeles Housing Department, said the Micro Operational Reserve Replenishment Pilot is intended to “support struggling permanent supportive housing projects” that have experienced negative operating cash flow for at least two of the last three years. Levian said the money is intended to replenish operating reserves, address capital needs and, where possible, bring offline units back into service.
The pilot targets projects that: have a negative net operating income for two of the last three years; have been in service at least 15 years; use competitive financing from the Low-Income Housing Tax Credit programs noted in the report; and contain at least 20 PSH units. LAHD staff said they used Enterprise Community Partners’ analysis to identify projects demonstrating operational shortfalls and to estimate average per-unit gaps.
Levian told the committee that Enterprise’s survey showed an average monthly operational gap of about $560 per unit and estimated capital needs in the neighborhood of $15,000 per unit; LAHD said its award amount per unit in this pilot was derived from those figures and the grant’s constraints. She described the award as a one-time infusion intended to stabilize projects, not eliminate structural market problems.
Committee members asked whether the pilot would be integrated into other portfolio-level reporting. Council member Blumenfield said he wanted to see follow-up metrics and broader reporting across the city’s housing investments. LAHD said potential metrics include whether offline units are returned to service and whether projects are operating in the black within one to two years of the award.
Council member Corrado, who represents parts of Skid Row, noted one of the recipients is The Ellis, a single-room-occupancy project that has been in service for at least 15 years and is serving formerly homeless residents. Corrado and other members stressed monitoring and accountability to ensure awards translate into improved habitability and sustained services.
The committee approved the LAHD recommendations on item 5 by roll call (three ayes).
