The legal aid organization that was denied a tenant aid contract last year by the Los Angeles city attorney now appears set to receive the contract after all.
On Tuesday, the L.A. City Council voted 12–1 to approve a nearly $107 million eviction defense contract with the Legal Aid Foundation of Los Angeles, or LAFLA, which oversees the Stay Housed L.A. program.
The vote had been previously scheduled but delayed twice. Last week, council members said they wanted to put off the vote because of a last-minute confidential memorandum sent to council offices by the L.A. City Attorney’s Office.
LAist obtained screenshots of the memo, which show City Attorney Hydee Feldstein Soto warning the council against awarding the contract to the foundation. The memo argues the city should “reconsider the award of such a large contract to a frequent litigant against the city.”
Sources with knowledge of the contract dispute told LAist that Feldstein Soto opposes LAFLA’s selection in part because the legal aid nonprofit has joined lawsuits in which the city is a defendant. In one case, the city was accused of failing to adequately respond to its homelessness crisis. The city ended up agreeing to a settlement deal requiring nearly 13,000 new shelter and housing beds.
LAFLA leaders said lawsuits against the city are handled independently from the tenant defense work the city has contracted the organization to do.
“There is no conflict of interest here, because Stay Housed L.A. and any affirmative litigation LAFLA brings against the city are entirely separate,” said Barbara Schultz, LAFLA’s director of housing justice. “We do not use Stay Housed L.A. funds for anything except for Stay Housed L.A. services.”
The backstory
With rents spiking faster than wages for many Angelenos, tenants can quickly find themselves on the brink of homelessness. The city’s elected leaders have tried to stop more renters from becoming unhoused by connecting them with rent relief and free legal defense against eviction.
LAFLA has headed the city-funded program Stay Housed L.A. since 2021. The program brings together legal aid providers to offer attorneys and legal advice to renters facing eviction.
Such legal representation is rare. One study found that 95% of landlords have an attorney in eviction court while the vast majority of tenants do not.
Last summer, the City Council and mayor approved a new five-year contract with LAFLA and its partners. But Feldstein Soto refused to sign it, arguing the contract should have gone through a competitive bidding process.
The city responded by putting out a request for proposals. After reviewing submissions, the city’s Housing Department recommended that eviction defense services continue to be overseen by LAFLA. The council approved that recommendation Tuesday after deliberating in closed session.
In addition to the $107 million award to LAFLA, the council voted in favor of giving $42 million to the Housing Rights Center for emergency rental assistance. The council approved nearly $22 million for the Liberty Hill Foundation to oversee tenant outreach and education.
Another tenant rights organization, Strategic Actions for a Just Economy, was approved to receive $6.6 million to strengthen awareness and enforcement of the city’s ordinance against tenant harassment.
Much of the funding comes from Measure ULA, the city’s so-called “mansion tax” on real estate selling for more than $5.3 million.
Calls for more transparency
In a statement emailed to LAist, City Attorney spokesperson Karen Richardson said the amount of funding being awarded exceeds the budget of some city departments.
“The eviction defense program is a City program and is in zero jeopardy,” Richardson said. “What is in question is a $177 million blank check to LAFLA and its partners without the reports and invoice review that is required by law.”
After rejecting the contract last year, the City Attorney’s Office launched an audit of LAFLA. LAist asked for details about the audit’s findings but did not receive a response.
In a statement after last week’s vote was delayed, Schultz said LAFLA has provided the city with ongoing reports about Stay Housed L.A. operations.
She said Stay Housed L.A. “has consistently provided anonymized detailed data on the individual case level to the city, without compromising client identities, along with detailed invoicing.” The program has “never refused to provide any data or invoicing information requested by the Los Angeles Housing Department,” she said.
Stay Housed L.A. leaders said the program currently retains about 160 tenants each month for legal representation and provides legal advice to another 575 tenants per month. They said about 55% of the tenants they’ve represented have remained in their homes and another 40% have settled cases on favorable terms.
During Tuesday’s meeting, some City Council members expressed frustration over how much information the program has reported on its outcomes.
“The transparency requirements in these contracts, when I look at them, does not meet the level of what we as a body should be requiring of organizations that we are giving money to,” said Councilmember John Lee, who cast the lone vote against awarding the contract.
Tuesday’s meeting included voting on a flurry of amendments. Among the amendments that passed, there were calls for new reporting requirements and annual funding renewals to be withheld pending performance reviews.
What it all means for renters
LAFLA is currently overseeing the Stay Housed L.A. program through a temporary contract extension set to expire March 31. If the council hadn’t approved the new contract this week, program leaders said they would have needed to quickly stop offering eviction defense services.
The program already has had to be judicious about taking on new clients, Stay Housed L.A. leaders said. They said they didn’t want to commit to defending tenants in months-long eviction cases if the city could abruptly pull funding.
“When [the previous] contract was disrupted, it did impact our ability to serve more and more vulnerable tenants,” said Joanna Esquivel, Stay Housed L.A.’s program manager at the Legal Aid Foundation. “We are really excited to continue doing this critical work.”
The City Council passed a “right to counsel” program last year, aiming to provide low-income tenants with the right to a free attorney in eviction court. The program does not yet guarantee an attorney to all qualified renters but is trying to expand access in phases by building up the Stay Housed L.A. program.