Committee approves redesigned TLS program, raises annual per-slot rate and directs rent-reasonable unit pool
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Summary
The Housing and Homelessness Committee approved CAO-recommended changes to the Alliance time-limited subsidy (TLS) program, including raising the annual per-slot rate to $29,560, a short-term fiscal agent contract with HOME, Inc., and instructions to build a rent-reasonable unit pool and report back monthly on lease-up progress.
The Los Angeles City Housing and Homelessness Committee on Jan. 21 approved changes to the Alliance time-limited subsidy (TLS) program aimed at accelerating placements and improving fiscal oversight.
The committee voted to adopt the CAO amendment that increases the recommended annual TLS service rate from $24,309 to $29,560 per slot and authorizes a not-to-exceed contract with a centralized fiscal agent and related LAHSA contract authority. Kendra Centilan of the Office of the City Administrative Officer read the amendment into the record and said, “The office recommends implementing a $29,560 annual rate for the Alliance TLS program to include dedicated centralized fiscal oversight of TLS rental payments, occupancy verification, and streamlined reporting.”
Why it matters: the city is pursuing 2,000 TLS slots to satisfy the Alliance settlement bed plan and aims to bring 150 placements online per month, with a target of having the slots leased up by April 2027. CAO materials estimate a direct fiscal-agent contract for rental assistance lease payments and landlord payments and identify potential general-fund impacts in fiscal years 2027 and 2028 if alternative funding is not secured.
Details and safeguards: CAO recommendations included (a) contracting with a centralized fiscal agent (HOME, Inc.) to handle rent payments and verification, (b) LAHSA contracts for service providers and expedited procurement to support rapid lease-up, and (c) strengthened reporting. CAO told the committee the $29,560 rate is intended to allow service providers to focus on case management while the fiscal agent handles payments and occupancy verification.
Committee concerns and directions: members asked about contingency plans if lease-up falls short of 150 placements per month, landlord recruitment strategies, and whether county reimbursement for services was feasible. LAHSA and implementation partners said they plan to use a specialized subcontractor for housing location assistance, central verification dashboards, and a phased ramp to begin leasing on April 1, 2026, aiming to reach the 2,000-slot goal by April 2027. CAO and LAHD were instructed to (1) create a pool of rent-reasonable units and (2) provide monthly reporting to the committee on TLS lease-up progress so elected members can track shortfalls in time to consider alternatives.
Financial context: CAO noted the one-year not-to-exceed contract authority for LAHSA services and an up-to $45,586,000 contract with HOME, Inc. for rental assistance payments in the presentation. CAO staff also said the proposal relies in part on reprogramming HAP funds and La Casa guidance, and warned of a possible future general fund impact (up to $21.6 million in FY27 and $13.5 million in FY28) if alternative funding is not identified.
Vote and next steps: the committee approved the CAO amendment and related instructions (roll call: Raman Yes; Gerardo Yes; Bloomfield absent; Hutt Yes; McOsker Yes). Members asked the CAO and LAHD to return with monthly updates and to present contingency strategies for alternative leasing approaches if ramp-up stalls.
