The Brief

This story was produced by the nonprofit journalism publication Capital & Main in partnership with ProPublica’s Local Reporting Network.  It is co-published with permission. Read part one and part two of the investigation into L.A.’s residential hotels.

As part of Mayor Karen Bass’ signature homelessness initiative called Inside Safe, the city of Los Angeles awarded Las Palmas Hotel a contract potentially worth about $2 million to temporarily shelter people living on the streets.

But the 62-unit hotel in Hollywood was already supposed to be providing housing for people who couldn’t afford to live anywhere else under a 2008 city law meant to ease a “housing emergency” that has grown more severe in the past 15 years.

Inside Safe participants now fill most of Las Palmas’ rooms at nightly rates of up to $140, according to the hotel’s contract with the city — more than double the amount Las Palmas would likely earn if long-term residents rented the rooms as that law requires.

Las Palmas is one of eight residential hotels that have received contracts over the past year to house homeless people through the new Inside Safe program, a Capital & Main and ProPublica investigation found. Of those, five hotels including Las Palmas have collected city funding despite seemingly violating the housing ordinance by offering rooms to tourists.

L.A.’s struggle to preserve low-income housing while simultaneously trying to shelter the growing number of people living on the streets represents an increasingly common national problem as city leaders wrestle with the competing needs of different populations amid a limited housing supply.

Residential hotels, which offer basic single rooms sometimes with shared bathrooms, have long been a kind of last-resort housing for low-income, older and disabled people. The 2008 law bars landlords from turning their buildings into condos or tourist hotels unless they build new units or pay an equivalent fee to the city’s Affordable Housing Trust Fund.

Altogether, at least 18 residential hotels have turned into interim shelters through various homeless services programs since 2016, according to a review of the Los Angeles Housing Department’s residential hotel list, Inside Safe contracts, state awards for housing construction and a Los Angeles Homeless Services Authority database of interim housing sites.

Now, that number is set to grow as dozens more residential hotels could become temporary shelters. On Nov. 1, citing a “desperate need for interim housing,” Bass issued an executive order that allows Inside Safe or similar programs to use the city’s 16,000 residential hotel rooms in 300 buildings during the city’s declared homelessness emergency as long as the rooms are unoccupied.

Turning such permanent housing into temporary shelters only makes the city’s housing problems worse, said Barbara Schultz, director of housing justice at the Legal Aid Foundation of Los Angeles.

“It is inconceivable to me that the city would reduce the number of permanent units affordable to low-income people when we are in the middle of this ginormous housing crisis,” Schultz said.

Bass’ press secretary Clara Karger said in an email that the mayor’s office decided that temporary housing is a better use of the rooms given LA’s housing crisis.

“It is troubling that residential hotels were being misused for daily rates and short-term vacation rentals,” she wrote. “Now, many of those rooms are being used to urgently bring people inside and save lives, and the mayor has directed the Housing Department to address enforcement and to conduct a comprehensive review of all residential hotels.”

This summer, Capital & Main and ProPublica reported that the Housing Department had done little to enforce the residential hotel law as 21 properties openly offered rooms to tourists on travel websites. Following a request by the mayor’s office, Housing Department managers investigated and issued citations to the owners of 17 hotels, including Las Palmas.

Pankaj Naik, CEO of Shivay Hospitality, which operates the hotel, declined to comment or answer questions. Las Palmas has appealed its citation and joined other hotels in a federal lawsuit against the city, alleging that residential hotel enforcement violates their constitutional protection against unreasonable searches. The owners also argue the city has given them tacit approval for short-term rentals by accepting nightly hotel tax payments. The lawsuit is ongoing.

The Housing Department told the mayor that with additional resources, the agency could “stop rogue property owners from violating the Residential Hotel Ordinance and undermining the availability of affordable housing stock.”

But now Bass’ office has removed hundreds of those same residential hotel rooms from the permanent housing market. And the Housing Department’s enforcement hasn’t stopped the city from giving the hotels hundreds of thousands of dollars in taxpayer money. Las Palmas’ Inside Safe contract expires in mid-November, but it provides for a six-month extension.

Patricia Harrold, an 80-year-old pianist at Miceli’s, a landmark Hollywood restaurant, has lived at Las Palmas for 29 years.

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Under Inside Safe, which Bass launched shortly after taking office in December, city staffers target tent cities under bridges or on sidewalks. Outreach workers offer motel rooms while buses stand by to ferry those who accept the offers to their temporary dwellings. Once the encampment residents are gone, sanitation workers break up the camps, toss trash and hose down sidewalks.

The pressure on city leaders to bring people inside from street encampments is “immense,” said Gregg Colburn, a University of Washington real estate professor who studies homelessness. Currently, 46,000 Angelenos live in cars, tents and makeshift shelters, and Bass promised to find housing for 17,000 of them in her first year.

“The problem with that strategy,” Colburn said, “is it doesn’t end homelessness. It recharacterizes it from unsheltered into sheltered, which is why I and many others argue we need a lot more permanent housing.”

Housing enforcement, then lucrative contracts

The Housing Department is supposed to approve any conversion of residential hotel buildings from permanent housing, but department records for 10 of the hotels obtained by Capital & Main and ProPublica didn’t show that permission was obtained to turn the hotels into temporary shelters.

The Housing Department did not provide all the hotel files that the newsrooms requested. It also didn’t respond to an interview request or answer emailed questions about whether it had cleared the hotels and what procedures they have for Inside Safe. Instead, the agency said it would handle the queries as a public records request.

Housing Department records revealed that inspectors had cited two of the Inside Safe properties for residential hotel violations in recent years. Hotel booking websites showed three others were openly renting rooms to tourists against Housing Department rules shortly before signing contracts with the city.

Las Palmas is a prime example. The hotel for years advertised its central location for travelers visiting Hollywood, capitalizing on its fame as the site of the final scene in the movie Pretty Woman.

The final scene in the movie “Pretty Woman” was filmed on Las Palmas’ fire escape.

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The Housing Department had designated Las Palmas as a residential hotel in 2011. It based its decision, in the Las Palmas case and others, on the state’s legal definition of a residential hotel: a building of six or more units that are the primary residences of their guests. During the period analyzed in 2005, hotel tax records showed that 93% of its occupants were permanent residents.

But as tenants moved away or died, the struggling actors, writers and celebrity impersonators who called Las Palmas home watched as their landlord turned more and more of the units into tourist rooms. The hotel’s website features a photo of the lobby with a mural of “Pretty Woman” stars Richard Gere and Julia Roberts reuniting on the building’s fire escape. The website promises visitors a “wonderful holiday” and a “blissful stay.”

Today, only about a dozen permanent residents remain, according to residents and the latest rent registry filed with the Housing Department.

As rents have soared, Las Palmas is the only housing most can afford, said writer John Bucher, 72. He got his third-floor room at the hotel 12 years ago “when there was still a payphone in the lobby.” Bucher has driven for Uber and DoorDash to supplement his income and can count on his adult kids to help him in an emergency. But for his neighbors, the hotel “is their safety net,” he said. “They’ll die here.”

John Bucher, a 72-year-old writer, has lived at Las Palmas for 12 years. Over time, more and more rooms have been rented to tourists as residents have moved away or died.

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As Las Palmas turned into a tourist hotel, it did little to hide its marketing efforts. Outside was a large sign offering “DAILY” and “WEEKLY” rentals. A housing inspector even snapped a photo of it in 2019, potential evidence that the hotel was violating the residential hotel law. But there’s no indication the inspector asked about the sign or followed up to ensure the hotel wasn’t being rented to tourists. And Las Palmas wasn’t cited under the ordinance until this summer, a few months after receiving the Inside Safe contract.

That wasn’t the case for two other hotels that similarly landed Inside Safe agreements: the Top Hat Motel and the Central Inn in South Los Angeles. The Housing Department cited both hotels in recent years for advertising to tourists in violation of the residential hotel law.

But in both cases, the hotels’ attorney wouldn’t allow inspectors to reenter without administrative warrants. Housing Department enforcement records show no evidence that inspectors obtained warrants, and no further enforcement action was taken.

Yet even that knowledge of violations didn’t prevent the city from awarding them Inside Safe contracts.

Neither of the owners of the Top Hat or the Central Inn returned phone calls seeking comment, and the Top Hat’s owners didn’t respond to an email. One of the Top Hat’s owners, Dipakkumar Patel, said at an appeal hearing that he would lose “everything” if he were unable to continue short-term rentals at the hotel. The hotel also joined the civil rights lawsuit against the city.

The Top Hat brought in nearly a half million dollars between late March and the beginning of October through Inside Safe, while the Central Inn earned more than $200,000 from May to September, according to invoices the motels submitted to the city’s administrative officer.

Stealing permanent housing

By turning residential hotels into temporary shelters, Bass may be working against her ultimate goal of transitioning people to permanent homes, housing experts said.

While Bass reported in September that about 17,000 people had moved to motels, traditional shelters or tiny home villages since she took office, only 2,235 had found permanent homes. For Inside Safe, just 190 of the nearly 1,700 participants had landed a permanent place to live as of mid-October. The city’s administrative officer, Matt Szabo, has told the City Council that there is not enough staff to help people find housing and also a shortage of affordable housing.

Inside Safe isn’t the first time the city has allowed residential hotels to be turned into temporary shelters. It’s unclear whether prioritizing getting people off the streets over preserving permanent housing was a deliberate policy choice or simple bureaucratic oversight: the result of well-intentioned housing policies from different eras colliding.

Eight other residential buildings have been pressed into service as temporary housing since 2016 through Los Angeles County or U.S. Veterans Affairs programs for emergency shelter or mental health and drug and alcohol treatment, or as part of the COVID-19 public health response.

Additionally, the state Housing and Community Development agency granted Los Angeles County and two nonprofit groups $19.3 million in Project Homekey funds to acquire and remodel two other residential hotel buildings to use as interim housing.

Schultz, the legal aid attorney, said it is a “mind-bogglingly terrible strategy” to use residential hotels as temporary housing because the ordinance provides such strong legal protection for their preservation — at least on paper. Residential hotels are the city’s only housing that can’t legally be demolished or converted to another use unless the housing is replaced, Schultz said.

The 72-room Highland Gardens, a midcentury modern hotel in Hollywood, highlights the tension between the city’s need for temporary shelter and its equally pressing need for permanent housing. Formerly known as the Landmark Motor Hotel, it is best known as the place where singer Janis Joplin died of a heroin overdose more than 50 years ago.

Highland Gardens had been designated as a residential hotel in 2009 but for years had also advertised its rooms to tourists. Then when local officials needed temporary housing to stop the spread of COVID-19 in homeless shelters, the hotel received a contract under Project Roomkey, paid for with federal pandemic relief funds.

Highland Gardens’ owner didn’t return phone messages left at the hotel.

By the time the program ended in December 2022, few participants had found permanent homes, and City Councilmember Nithya Raman pushed to keep Highland Gardens open as an interim housing site. She said she didn’t know it was a residential hotel.

“That’s part of the problem with the city is that we have such an ad hoc process for finding interim housing,” Raman said. Before Bass took office, Raman said, council offices took the lead in finding sites. “I personally would speak to the owner of this facility to tell them about the program and convince them that there would be benefits for them,” she said.

Raman’s colleagues backed her request, and now a $6 million contract, in effect until mid-2025, includes nearly $4 million to rent the hotel’s rooms and about $2 million for social services for people who had been living on the street. At just $50 per room per night, it’s a more favorable deal for the city than the Inside Safe hotels have negotiated.

Raman said she doesn’t think using the Highland Gardens for temporary housing is a mistake, given the urgent need for shelter. “It has saved lives,” she said.

Tommy Lachenmyer, 36, who moved into Las Palmas through Inside Safe after a fire ripped through a Hollywood encampment near where he slept this year, said the temporary housing has been “a blessing.” But while he’s found a job at Pizza Hut and is studying at a local film school for a career in music production, his quest for stable housing may be harder.

Lachenmyer revisits the location where he once lived in a tent on Vista Del Mar Avenue in Los Angeles.

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Lachenmyer said he filled out an application for permanent housing when he moved in about six months ago. He’s still waiting for approval before he can begin his housing search and said he holds out hope that his stay at the hotel will lead to permanent housing. As for the long wait, Lachenmyer said, “I’m OK with it. People have waited for years.”

But longtime resident Bucher said he is not as optimistic that his new Inside Safe neighbors will find permanent housing.

“All they’re doing is warehousing people,” he said. “Nobody thinks about anything but getting them off the streets.”

Companies that create and manufacture personal delivery devices, those cute bots you see on public sidewalks, have been working on growth plans for years.

Cities, on whose public sidewalks the delivery bots travel, are only now catching up to regulating them and charging the companies fees.

That's what's happening in Glendale, where, City Councilman Dan Brotman says, “[The delivery bots] just appeared out of nowhere. The company that operates [them] never reached out and talked to us."

He and other council members, he said, want to know if the delivery devices make it harder for Glendale residents using wheelchairs to use public sidewalks.

“I also am curious who is getting the financial benefit from these,” he said.

Glendale’s City Council asked city staff last month to draft two proposals, one with regulations and fees and the other pausing the operation of delivery bots while the council studies their impact. Brotman said staff may deliver those proposals to him and his colleagues in the months to come.

The two largest cities in LA County, at two different stages

The City of Los Angeles approved rules for personal delivery devices a few years ago, including flat permit fees. The City Council has since asked staff in the Department of Transportation to revaluate those rules and make suggestions.

One idea being considered — charging companies for every bot trip instead of the flat fee.

A delivery robot sits next to the bike path by the beach

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L.A. City Councilwoman Eunisses Hernandez successfully introduced the motion last year to have the regulations revisited. 

“[The companies are] starting to put movie ads or show ads, and if they're generating revenue off that, we want to know what that looks like but also be able to have a fee for them,” Hernandez said.

That report should be presented to the City Council later this year, she said. 

She’s also keen to hear from the public about their views on delivery bots. 

Companies that make the devices argue they’re providing an essential delivery service to residents while cutting down on the number of vehicles on the road making the deliveries.

“We currently pay fees in Los Angeles, Chicago and West Hollywood as part of their permit programs and are open to similar models in other cities,” said Vignesh Ram, vice president of policy at Serve Robotics, by email.

Starship Technologies' delivery robot exits the elevator in the company's office.

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The company is now operating in Long Beach; Ram says it notified the city before beginning to operate there.

A City of Long Beach spokesperson told LAist its business licensing, planning and public works teams are currently working on recommendations for regulations. Those should be presented to the City Council early this summer.

The story first appeared on The LA Local.

When Hermila Melero trains future therapists at Cal State LA, she emphasizes something she learned over nearly two decades working on the Eastside: It matters where you’re from. 

“When you know the difference between East LA and Boyle Heights … they appreciate that on a really fundamental level,” Melero, director of field education at CSULA’s School of Social Work, said. “You feel a sense of safety and being seen when the person reflects what you look like, has a foundational understanding of where you come from.” 

Now, a $48 million grant to California State University, Los Angeles, will open new opportunities for students to serve the communities they come from. The funding will expand the university’s social work and counseling programs, training 1,000 new students to support youth mental health in Eastside communities and other underserved areas of Los Angeles.

What will the funding do?

The five-year investment by the Ballmer Group — the largest grant in the university’s history — will significantly grow Cal State LA’s Master of Social Work program. 

Its one-year MSW program will double in size, the two‑year program will increase by 50%, and the School-Based Family Counseling program will also double. The bulk of the funding will support scholarships, new faculty and the expansion of clinical placements.

Cal State LA already partners with organizations across the Eastside, including El Centro De Ayuda, AltaMed, Survivor Justice Center and schools across LAUSD. The new funding will allow more students to work directly with these groups, serving families who often lack access to care. 

“This speaks to the amazing work our social work and counseling programs are doing within our schools and with LA’s agencies serving youth and families,” said CSULA President Berenecea Johnson Eanes in a statement to Boyle Heights Beat. “With more clinical placements and greater numbers of master’s alumni, we will make real strides in meeting a critical shortage of qualified social workers and counselors.”

In addition to CSULA, CSU Dominguez Hills received $29 million to expand mental health resources in South LA and UCLA will use part of its $33 million grant to develop a minor in youth behavioral health. The three universities have received a total of $110 million. 

When Hermila Melero trains future therapists at Cal State LA, she emphasizes something she learned over nearly two decades working on the Eastside: It matters where you’re from.

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Why representation matters

For Melero, who was born and raised in East LA, the expansion is personal. 

Melero spent 17 years of her professional career as a social worker in her own community and the surrounding areas. She witnessed firsthand how much her patients appreciated it when she spoke to them in Spanish or told them where she grew up. 

“You don’t have to explain yourself, you don’t have to explain what it’s like, you know, to grow up here,” she said. 

Now as director of field education, she helps place students in organizations, clinics and schools across the region, many of them serving the neighborhood they call home. 

Barriers to access

The need for more mental health workers comes at a time when many Eastside families are facing more barriers to care.

Stigma around mental health combined with fear tied to immigration raids have discouraged some people from seeking services, Melero said.

At the same time, financial challenges are making it harder for students to enter the profession. 

In January, the U.S. Department of Education updated its definition of a “professional degree” and excluded social work, which will affect graduate students’ eligibility for federal student loans, creating a significant financial barrier, according to the Council on Social Work Education.

Students hope to give back

For students like Silvia Perez, 41, financial assistance would be a great help.

The Cal State LA undergraduate student is pursuing her master’s degree after she graduates in May, all while raising two teenagers and a 23-year-old. Perez has been paying for her education by selling shoes and perfume outside of her home in East LA. 

Her decision to pursue a career in social work came after seeing her sister navigate the Department of Children and Family Services system with her children and witnessing how young people in her community struggled with substance abuse and homelessness. 

After graduating, Perez hopes to work in East LA to help the people she encounters every day. She believes that level of understanding can create trust with an already vulnerable population.

“I would like to help the people in my community first…I live the daily life that everyone else in my community faces,” she said.

For more information on CSULA’s MSW programs, click here.

Editor’s Note: The LA Local also receives support from the Ballmer Group.

This story was originally published by CalMatters. Sign up for their newsletters.

California scored a legal victory Monday that for now, undermines the Trump administration’s efforts to drastically cut funding for homeless housing.

Changes that would have diverted huge chunks of federal funds away from permanent housing and funneled them instead into temporary shelters and sober living programs will remain suspended after the Trump administration dropped its appeal of an earlier court loss. While the broader case is still being litigated, the new development could provide some reassurance to California counties waiting for the federal funds.

“We continue to fight for Californians and the rule of law, and we continue to win,” Attorney General Rob Bonta said in a news release. “People experiencing housing insecurity or homelessness need the federal government’s continued support — not a rollback of assistance.”

In November, the federal Department of Housing and Urban Development attempted to change the way it doles out money for homeless services via its Continuum of Care program. It decreed that jurisdictions applying for a piece of about $4 billion in federal homelessness funds can’t spend more than 30% of that money on permanent housing — a move that would result in a significant cut to the type of long-term housing that can resolve someone’s homelessness.

Last year, California communities spent about 90% of their federal Continuum of Care funds on permanent housing.

Gov. Gavin Newsom’s administration quickly joined 19 other states and the District of Columbia in suing to stop the Trump administration’s changes. In December, a federal judge in Rhode Island temporarily blocked the changes and ordered HUD to process funding applications under the original rules. The Trump administration appealed that ruling, leaving local governments and homeless service providers unsure of what they would be awarded funding for, and when.

The federal government on Monday dropped its appeal. While the rest of the lawsuit will move forward, and could take months to resolve, counties should be able to access permanent housing funds in the meantime.

Instead of prioritizing permanent housing, as has been the rule in the past, the Trump administration wants to focus more on shelters that get people off the streets quickly and temporarily, and on programs that require residents to be sober. HUD also attempted to ban the use of federal homelessness funds for diversity and inclusion efforts, support of transgender clients, and use of “harm reduction” strategies that seek to reduce overdose deaths by helping people in active addiction use drugs more safely.

A HUD spokesperson said the agency stood by its funding reforms.

“HUD remains committed to reforming the failed ‘Housing First’ approach and restoring the Continuum of Care program to its core objectives; reducing homelessness and promoting self-sufficiency for all vulnerable Americans, ensuring taxpayer dollars are directed towards those goals,” a spokesperson said in a statement.

HUD experienced another legal setback last month when a federal judge in Rhode Island shot down the agency’s attempt to upend another, smaller, source of federal homelessness funding. At issue in that case was a program called the Continuum of Care Builds grant, which funds the construction of new homeless housing. HUD last year made grantees reapply under a very different set of criteria, which seemed to disqualify organizations that support trans clients, use “harm reduction” to prevent drug overdose deaths or operate in a “sanctuary city.”

About $75 million in federal funds had been frozen as that case moved forward.

In March, the court found HUD violated the law through its “slapdash imposition of political whims.”

“This ruling is a victory for people across this nation who have overcome homelessness and stabilized in HUD’s permanent housing programs,” Ann Oliva, chief executive of the National Alliance to End Homelessness, which filed the lawsuit, wrote in a statement. “Today’s news reinforces a fundamental truth: that the work to end homelessness is not partisan, and never should be interfered with for political means.”

This article was originally published on CalMatters and was republished under the Creative Commons Attribution-NonCommercial-NoDerivatives license.