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Committee adopts higher interim housing bed rates for family sites; CAO projects modest budget impact
Summary
The committee approved CAO recommendations to set interim housing family bed rates using single-adult rates as a baseline plus a dependent multiplier, increasing projected family-portfolio costs for FY25–26 to about $3.3 million.
The Housing & Homelessness Committee on April 23 approved a CAO report that sets new interim housing bed rates for family sites, applying the single‑adult interim housing rates approved in December 2024 as a baseline and adding a factor for dependents.
CAO staff said the single‑adult interim housing rates adopted earlier this year are $160 per bed for sites with 50 beds or fewer and $89 per bed for sites with 51 or more beds. The family rate formula applies a 2.5 dependent ratio to the single‑adult baseline, producing proposed family rates of $169 per unit for sites with 14 units or fewer and $135 per unit for sites with 15 units or more. CAO staff said the draft scope of required services was developed with the Chief Legislative Analyst and LAHSA and that the rates assume staff wages starting at $20 per hour and a staff‑to‑client ratio of 1:25.
The CAO estimated the city’s single‑adult interim housing portfolio cost for FY 2024–25 at about $141 million; with the earlier bed‑rate increase that went into effect Jan. 1, 2025, the FY 2024–25 cost rises to roughly $154 million, and the FY 2025–26 estimate is about $186 million. For the family portfolio, CAO staff estimated the current fiscal year cost at roughly $2.7 million and the FY 2025–26 cost under the proposed rates at about $3.3 million (an increase of roughly $550,000).
Committee members asked CAO and LAHSA staff which providers were consulted on the rates; LAHSA’s interim housing director said the office held an open informational session on March 3, 2025, and invited all family system providers to participate. Committee members also asked about funding sources; CAO staff said family bed rates are primarily funded with the general fund and potentially Housing Authority Program (HAP) funds.
The committee approved the CAO recommendation to move the rates forward; staff were directed to include funding recommendations in an upcoming CAO funding report.
Why it matters: The adopted family bed rates create a consistent rate structure across the interim housing portfolio and modestly increase costs for the family portfolio in FY 2025–26. The decision affects contracting, provider budgets and upcoming budget work in the next fiscal cycle.
Quote: "The purpose of this formula structure is to ensure that the bed rates are consistent throughout the entire portfolio regardless of the population served," said Anna Bau Gonzalez of the CAO office.
What’s next: CAO will return with funding recommendations for the next fiscal year and LAHSA will continue to coordinate with providers on implementation.
