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CAO reports city is behind Alliance settlement target; 3,822 additional beds or units needed by 2027 deadline
Summary
The City Administrative Officer reported that, as of Dec. 31, 2024, Los Angeles has opened 4,815 beds/units and has 4,278 in progress toward the Alliance settlement requirement of 12,915 interventions, leaving 3,822 still needed by the June 13, 2027 deadline.
The committee reviewed a quarterly City Administrative Officer report on the city’s progress toward meeting a federal court settlement known as the Alliance settlement. The CAO told the committee the city must create 12,915 shelter and housing interventions by June 13, 2027 to comply with the settlement.
Megan Falcone of the CAO’s office summarized the numbers: "As of 12/31/2024 of the 12,915 beds or units required under the settlement 4,815 beds or units are open and 4,278 beds or units are in progress for a total of 9,093 units or beds that satisfy the intent of the settlement." She added that 3,822 additional beds or units are needed by the June 13, 2027 deadline.
Distribution and tracking concerns Falcone explained the settlement sets citywide and district targets intended to promote an equitable distribution of interventions across council districts, though the city is not required to hit each district’s target to be in compliance. The CAO said CDs 1, 3, 8 and 13 are projected to meet their district targets within the next two fiscal years; other districts need additional pipeline projects to meet targets.
Ed Gibson of the CAO’s office told the committee the CAO can work with council offices to identify potential sites and that the city has a website for owners to submit possible locations for interim or permanent supportive housing. Gibson said the Affordable Housing Liaison Unit (a CAO team on loan to the mayor) conducts initial reviews of submissions and coordinates with GSD and the Bureau of Engineering for site feasibility assessments.
Obstacles and program details Committee members questioned delays tied to financing, Section 8 management, master leasing, and county reimbursement. Gibson said the city faces financing constraints (tax credit schedules, bond rounds) and that the housing production timeline can slip when leveraged financing is delayed. He also said LAHSA-managed master leasing units would appear on the next quarterly report — "498 master lease units on it that the city has participated in one way or other," Gibson said — and that most of those appeared to be Inside Safe participants.
Members raised concerns about county reimbursements for interim housing operations and the difficulty securing upfront county funding. Gibson said the county has been slow and methodical in its invoice review; the CAO reported about $1.7 million collected so far and said the county has repeatedly questioned submissions, which has slowed reimbursement.
Legal and compliance risk When asked about legal consequences of falling short of the Alliance targets, Gibson said the judge has discretion and noted potential court-ordered remedies if the city fails to meet the settlement terms.
The committee voted to note and file the CAO report.
Provenance (transcript evidence): Item read into record at s=1372.2649 ("Item number 2 is a city administrative officer report..."). Megan Falcone’s summary begins at s=1399.9049 and CAO follow-up commentary and Q&A with council members ran through s=2749.55.
