The Brief

This story first appeared on The LA Local.

Property owners in Boyle Heights’ industrial corridor, near the Sixth Street Bridge, are proposing a plan to fund private security, street cleaning and landscaping, a move that could significantly change how the area is maintained.

The proposed plan would cover an area stretching from 1st to 7th streets and between Mission Road, Clarence and Anderson streets where sound stages, film studios and warehouses sit alongside the public housing complex of Pico Gardens and a residential neighborhood near Dolores Mission Church. Property owners say the city has failed to adequately provide services to keep the area clean and their employees safe. Meanwhile, some community advocates and nearby residents are wary of the area’s growing concentration of entertainment venues, just across the river from the Arts District, which have drawn crowds for electronic music festivals and special events like Olivia Rodrigo’s album release pop-up.

David DaCosta, of the 18-acre Ace*Mission Studios, is among those pushing for what’s known as a Business Improvement District, or BID, in the area that proponents refer to as the Boyle Heights Industrial Flats, which runs adjacent to the Los Angeles River. 

At a meeting at Dolores Mission Church in May, DaCosta touted the effort as a rare private-public partnership that should be cherished. “There’s a natural relationship between us all, a natural path for us all to want to work together,” he said.

Not everyone is convinced. The proposal comes as Boyle Heights continues to grapple with tensions over displacement and who benefits from development. Supporters see privately funded services as a solution to neglect and public safety. Opponents say it could eventually lead to gentrification and over-policing.

To Elizabeth Blaney, with Union De Vecinos, a local branch of the Los Angeles Tenants Union, the BID would “put control of public space in the hands of those businesses who are part of the BID.” 

Property owners in Boyle Heights’ industrial corridor, near the Sixth Street Bridge, are proposing a plan to fund private security, street cleaning and landscaping, a move that could significantly change how the area is maintained.

(

Andrew Lopez

/

For Boyle Heights Beat

)

What is a BID?

Business Improvement Districts are self-funded associations that collect revenue through property taxes within a geographically defined area. 

In this case, the proposed BID encompasses over 160 parcels that are owned by more than 70 property owners within the so-called “flats” area adjacent to a series of railroad tracks. The proposed tax would only apply to commercial property owners within the industrial district — not residents of nearby apartments and single-family homes.

Property taxes collected through the BID would fund landscaping services, including weed removal throughout the proposed district, as well as sanitation personnel who would sweep up trash and litter from sidewalks and gutters seven days a week.

Security services may also be provided “to ensure that petty crime and vandalism are reduced” within the district, according to the BID plan. Proponents say they will work toward “minimizing the impact of unhoused individuals” within the district by collaborating with social services. 

Funds would also support marketing efforts, website development and public relations campaigns to promote business and activities within the BID.

The Boyle Heights Industrial Flats BID would operate for five years, from January 2027 to December 2031, and is projected to generate $6.9 million over that period, with about $1.2 million in its first year. If approved, the BID would be managed by a nonprofit.

Property owners in Boyle Heights’ industrial corridor, near the Sixth Street Bridge, are proposing a plan to fund private security, street cleaning and landscaping, a move that could significantly change how the area is maintained.

(

Andrew Lopez

/

For Boyle Heights Beat

)

Residents express concerns

Residents and community members have mixed feelings about the proposal.

On one hand, Boyle Heights residents like Margarita Amador see it as a win “when someone in the community wants to invest to improve our quality of life.” 

Amador grew up in the area at a time when gang violence was at its peak. “No one would want to come into that side of town,” Amador said. Redevelopment and investments have changed the neighborhood for the better, she added. “We’re not in a position to turn away dollars,” she said.

Meanwhile, Ana Hernandez, a Pico Gardens resident, is wary of stakeholders behind the BID proposal. 

Businesses in the industrial area, she said, host late-night events, including raves, that disrupt their quality of life. Residents have complained of loud parties and music late into the night. Their dogs get scared, and they have to shut their windows, one neighbor said. 

“They don’t bring business for the community. What they want are earnings,” she said. “The ones who dominate the streets are people who are not from the community.”

Homeowners like Sylvia Sifuentes aren’t necessarily opposed to the BID. 

Instead, Sifuentes wants residents who live near the proposed district to receive clearer information about how the plan would operate and who it would affect. Sifuentes, 67, has lived near Dolores Mission since she was born and only recently found out about the proposed district.

The meeting in May was her formal introduction to the BID proposal. Initially, Sifuentes incorrectly heard homeowners like her would also be taxed. She also wondered why a tax was necessary. The city, she noted, already provides graffiti removal and trash pick-up services.

Union De Vecinos has organized a petition opposing the BID that organizers said has garnered more than 300 signatures. The petition argues the BID could contribute to rising rents and parking congestion.

Blaney, the organizer with the group, finds the BID problematic because property owners would “get to decide what goes on there” instead of the community as a whole.

“They get to decide the aesthetics of the neighborhood. They get to decide who can hang out and at what hours on the street. They can hire security on bikes and cars that patrol and enforce and harass.”

Property owners in Boyle Heights’ industrial corridor, near the Sixth Street Bridge, are proposing a plan to fund private security, street cleaning and landscaping, a move that could significantly change how the area is maintained.

(

Andrew Lopez

/

For Boyle Heights Beat

)

Proponents respond

Alfred Fraijo, Jr., whose law firm Somos Group is helping with the BID formation process, said proponents are looking at “alternative modes” of creating public safety. Fraijo, who is from Boyle Heights, acknowledged at the May meeting that communities like Boyle Heights have suffered from over-policing.

He said providing better lighting could make the area more inviting and walkable. “Having eyes on the street is a way to do it,” he said. “We want to partner with organizations that are already doing the good work [in] Boyle Heights, creating intersection safety for children crossing the street.”

Proponents like Mark Borman of Bridge & Corner, which hosts film production in the area, said the BID could address environmental concerns impacting the well-being of their tenants.

“We suffer [from] illegal dumping, often of toxic materials,” Borman said at the May meeting. “There are zero actions, zero street services that we received. Our streets are not swept. Our buildings are tagged … on a daily basis. Our cars are broken into regularly.”

Borman said property owners call the city’s 311 system to no avail. “As a property business owner, I have tenants … who tell me that they do not feel safe going to their cars after work,” he said.

For DaCosta, the BID could make all the difference in retaining employees.

“As an employer, if you employ people and they are driving early in the morning or they are working late … and if the area is not safe and secure, it’s difficult to recruit people, and it’s difficult to keep people,” DaCosta said. “Why would anyone want to come and work in an area that’s not safe?”

Property owners in Boyle Heights’ industrial corridor, near the Sixth Street Bridge, are proposing a plan to fund private security, street cleaning and landscaping, a move that could significantly change how the area is maintained.

(

Andrew Lopez

/

Boyle Heights Beat

)

What happens next?

The proposal’s next stop is the city’s Economic Development and Jobs Committee on Tuesday. 

Property owners in Boyle Heights’ industrial corridor, near the Sixth Street Bridge, are proposing a plan to fund private security, street cleaning and landscaping, a move that could significantly change how the area is maintained.

If approved, it would advance to the full City Council for consideration before ballots are sent to property owners within the district. After about 45 days, the city will tally those votes, and the City Council will decide whether to formally establish the district. 

The Los Angeles region’s troubled homeless services agency announced this month that it will no longer manage the region’s federal homelessness dollars, amid scrutiny from the Trump administration.

Now, a federal court must help determine who will manage roughly $240 million in annual federal funding after the L.A. Homeless Services Authority gives up that long-held job in the coming months.

At a hearing Wednesday, U.S. District Judge David O. Carter said most of his attention is on who will administer the round of federal money that will be awarded in December and distributed next year.

The only potential near-term successor discussed in court was L.A. County, which created a new homelessness department and applied for the role. County officials have promised much stronger accountability and transparency.

But the city of L.A., where most of the region’s unhoused people live, is also interested in taking over some of LAHSA’s duties. The city could eventually try to break off and form its own regional body to receive federal funds, Carter said.

“But that’s for the future,” Carter said. “For now, we have to focus on providing for people experiencing homelessness — and also fraud and corruption.”

‘The watchdog wasn’t watching’

LAHSA has been used as a punching bag, Carter said, but he blamed recent cases of alleged theft of taxpayer funds on a broader “failure of government” by both HUD and LAHSA.

“The watchdog wasn’t watching, and the money got distributed without accountability,” Carter said.

In the meantime, Carter said, LAHSA isn’t going anywhere. He said any transition must unfold gradually to avoid displacing people from housing and services.

“We’re going to have to live with LAHSA for at least some period of time,” Carter said. “The question might be how much?”

How soon could the county take over? 

Carter said he agreed with LAHSA’s decision to entrust another administrator to manage the money.

Attorneys for the U.S. Department of Housing and Urban Development (HUD) told Carter the next round of annual funding would be distributed over 2027.

Carter acknowledged HUD may be uneasy sending that money to LAHSA, the very agency it is investigating for fraud. Carter said he was struggling with the issue himself.

Carter signaled that he wants to see federal funding transferred to the county by January if it is chosen as LAHSA’s successor.

‘The devil is in the details’

At the hearing, federal prosecutor Bill Essayli said the Trump administration would rather reach an agreement than litigate. He said “the devil is in the details” when it comes to any transition away from LAHSA.

“We want assurances of anti-fraud measures,” Essayli said. “That way the money is never stolen again.”

Carter said he hoped a transition plan would keep the parties from spending millions of dollars on attorneys’ fees that could otherwise go toward housing and services.

How we got here

In June, the Trump administration suspended LAHSA from applying for federal funding, alleging years of financial mismanagement. LAHSA then sued, and Carter blocked the suspension in August. Carter’s decision has so far held up on appeal.

LAHSA’s governing commission voted this month to give up its federal roles next year, including managing federal homelessness dollars and conducting the region’s annual homeless count. Local officials have been taking applications from organizations that want to take over those duties in 2027.

Meanwhile, investigations into fraud have been widening. Prosecutors have so far charged six people connected to L.A. homeless service providers. LAHSA has said none of its staff are implicated.

When asked if LAHSA’s current or past leadership has been culpable, Essayli recently said, "It is not against federal law to be incompetent, unfortunately.”

Major shifts happening

For decades, county, city and federal dollars have been managed mainly by LAHSA. But those funding streams are now being redirected in the wake of repeated findings of mismanagement.

L.A. County pulled roughly $300 million of its annual homelessness funding in July and gave it to its new in-house Department of Homeless Services and Housing.

That leaves the city as LAHSA’s last major funder. The City Council has explored leaving, but hasn't reached a decision yet. City staff has estimated that building a city homeless services department would take up to two years.

On the campaign trail, Councilmember Nithya Raman has pledged to exit LAHSA within her first year if elected mayor, while incumbent Mayor Karen Bass has said it would take "a couple of years."

What’s next

Carter did not rule Wednesday on federal funding. He scheduled a hearing for Oct. 27 and described it as “our decision-making day on so many matters.”

Before then, local officials are expected to select a replacement to take over LAHSA’s federal administrative roles.

Los Angeles city officials are asking LA28 to hand over a list of its contracts, saying the Olympics organizing committee could be in violation of its agreement with the city.

LA28’s annual financial report released last week included a broad review of the organization’s deals with contractors hired to help put on the event, but no names or detailed breakdowns of spending.

The Games Agreement between the city and LA28 requires the committee to submit the name, type, amount, term and purpose of each contract it has entered into worth more than $1 million.

No such list was provided in LA28’s report.

“It's inadequate, what we've been provided, and that's not acceptable,” City Councilmember Katy Yaroslavsky said at a committee meeting on the 2028 Olympics Wednesday afternoon.

Chief Legislative Analyst Sharon Tso said she has requested a full list from LA28 and is waiting to hear back.

Jacie Prieto Lopez, a spokesperson for LA28, said in an emailed statement to LAist that LA28 had received the request.

“We are working through those requests now and remain committed to meeting our obligations," she said.

Tso told the council committee she had seen a more detailed list of LA28’s contracts, but only when it was “flashed on the screen very quickly” at a meeting with her, Olympics organizers, the city administrative officer and the mayor’s office.

“So we don't have a list,” Tso said. “We don't have the names of the folks. We don't have the dollar amounts.”

Tso told the council that Olympics organizers were wary about making contracts public, due to concerns that public disclosure could harm negotiations over competitive event sponsor deals.

City Councilmember Hugo Soto-Martinez said that did not satisfy LA28’s obligations to the city.

“They can just be like, ‘Flash it, we're done, and we did our requirement,’” Soto-Martinez said.

The federal financial aid process opened this past week for students applying to college for next year. But for many California students, a source of state financial help remains untapped.

In 2022, the state launched the California Kids Investment and Development Savings Program, also known as CalKIDS, and began creating investment accounts for more than 6 million children in the state to use for higher education.

Babies born on or after July 1, 2022, can get up to $175 in their accounts, while low-income public school students can claim up to $1500.

In Los Angeles County, about 1.1 million public school students are eligible for the accounts, but fewer than 20% of kids have claimed them, said Cassandra DiBenedetto, executive director of California’s ScholarShare Investment Board. The claim rate is even less for babies — about 11%.

“The money itself, it has a long trajectory. So you have these newborns, and there's not a sense of urgency among some parents; they know the account's there, it’s been created. Parents are busy,” DiBenedetto said.

There is no deadline to claim the money, which is already growing in the investment accounts. (You do have to use the money by age 26). But DiBenedetto says kids are more likely to see themselves as college-bound if they have it — and will be able to watch the account grow over time.

“ You talk to second-and third graders who are like, ‘I'm gonna go to UC Santa Barbara,’ ‘I'm gonna go to Cal Berkeley,’” she said.

The state is working with the Los Angeles Unified School District and other school districts to get students signed up.

The city’s top financial adviser is recommending that the Los Angeles City Council deny a police department request to procure 300 additional vehicles for the 2028 Olympics and Paralympics.

The report, submitted to the council Monday by City Administrative Officer Matt Szabo, found that the L.A. Police Department would have enough vehicles to temporarily expand its fleet during the Games without the additional cars.

LAPD officials had previously requested around $31 million, arguing the additional officers deployed for the Games will need additional vehicles for their police work.

But Szabo disagreed in his report, finding instead that the department would soon have a large enough fleet.

“Given the current available vehicles and new vehicle procurements which have already been funded, it is not recommended to authorize the procurement of any additional police vehicles for the 2028 Games deployment,” Szabo wrote.

An LAPD spokesperson declined to comment on the city administrative officer’s report. Previously, the department has emphasized that its request seeks only to temporarily expand its fleet, with plans to retire old vehicles after the Games.

The police department has offered different estimates of how many additional vehicles it will need to patrol the Olympics. Two months after the LAPD asked for an additional 300 vehicles, the department released another report estimating an even higher need: 576 police vehicles.

Either way, Szabo’s report found that more than 1,100 police vehicles not yet in use by the department were funded in the past three budget cycles. He said those should be sufficient for the Olympics.