Federal judge orders LA to verify thousands of rental subsidies for unhoused people

A federal judge is ordering the city of Los Angeles to prove that it provided more than 2,600 rental subsidies for unhoused people, evidence that L.A. is complying with long-standing agreements to create more shelter.

U.S. District Judge David O. Carter made the order at the end of a hearing held to determine whether the city is fulfilling its legal obligations in a lawsuit with the L.A. Alliance for Human Rights, a downtown business group that sued the city.

Los Angeles is required to create 6,000 new beds for unhoused people under a 2020 deal known as the Roadmap agreement. The city has been counting rental subsidies in compliance reports submitted to the court.

But Carter said in an amended order issued Thursday that he had “serious concerns about the accuracy” of the numbers. He required city representatives to provide evidence about the rental subsidies by next week.

The judge is expected to make a decision by the end of the month on whether L.A. has breached its legal obligations, as laid out in the agreements, and if control of the city’s homelessness spending should be handed to a third party.

Why it matters now

Several witnesses, including the city administrative officer and deputy mayor for Homelessness and Community Health, testified during the federal court hearing, which lasted more than a week in downtown L.A.

Part of the evidence focused on what are known as time-limited subsidies, which are a means to get unhoused people into apartments and other rental units on the private market, typically for up to two years.

The regional Los Angeles Homeless Services Authority, known as LAHSA, has said the subsidies support people experiencing homelessness by helping them access permanent housing quickly.

According to his order, Carter is concerned about 2,679 of these subsidies, which court-appointed assessors testified they could not verify because of missing addresses and other information.

Skid Row community

Among the witnesses who testified during the hearing were members of the Skid Row community, including those who were previously unhoused.

Don Garza, who has lived in Skid Row for 26 years, said people are languishing on the streets while they wait for housing.

“They didn't have to die,” he said, his voice breaking with emotion. “There's enough money for the shelters, there's enough money to do all of it. We don't have to fight for one or the other, there's plenty.”

“Where did the money go?” he continued. “Why are these people dying on our streets? Why are they dying?”

Suzette Shaw, a Skid Row resident and advocate, came to court nearly every day of the hearing to listen and observe. She told LAist she was triggered by some of the testimony, including when Carter thanked the city’s new lawyers for visiting Skid Row.

“ It should be mandated that any city, county employee, especially attorneys that are involved in this homeless sector, that you have to come into a community called Skid Row,” she said. “ And you need to work …  side by side with us.”

What’s next

The city is required to provide specific information on each rental subsidy by next Wednesday, including the addresses and whether someone at each address is living there.

All of that information will be filed under seal, meaning it won’t be disclosed publicly, according to the court order.

Starting Monday, the attorneys in the case will submit written arguments to the judge. Their arguments are expected to focus on whether the city breached its obligations and whether control of L.A.’s homelessness spending should be transferred to a third party.

Carter is expected to make a decision by the end of June.