Page 511 - FY 2020-21 Blue Book Volume II

HOMELESS BUDGET

BASIS FOR THE PROPOSED BUDGET

The 2020-21 Proposed Budget for homeless-related expenditures relates to current year funding as follows:

General Fund Special Funds Total % Change

2019-20 Adopted Budget $ 106,395,876 $ 322,146,586 $ 428,542,462

2020-21 Proposed Budget $ 113,322,893 $ 286,364,069 $ 399,686,962

Change from 2019-20 Budget $ 6,927,017 $ (35,782,518) $ (28,855,500) (6.7)%

The Homeless Budget describes funding included in the Budget for the provision of housing and services to homeless
individuals and families in the City. Items included as part of the Homeless Budget are funded within the individual budgets
for the Los Angeles Homeless Services Authority (LAHSA), City departments, the General City Purposes (GCP) budget,
and the Unappropriated Balance (UB).

Proposition HHH (Prop HHH), approved by voters in November 2016, authorizes the City to issue up to $1.2 billion in
General Obligation (GO) bonds to finance the development of permanent supportive housing, affordable housing, and
facilities. Permanent Supportive Housing (PSH) units house chronically homeless and homeless households. PSH is
housing combined with services, which may include mental and health services, drug and alcohol treatment, and education
and job training. GO bond proceeds may also fund facilities that provide services to the homeless, such as service centers,
health centers, shelters, storage, and shower facilities. Bond proceeds may only be used for capital, not operations or
services. The 2020-21 Special Fund amount includes the total amount of Prop HHH funding proposed for PSH projects in
the 2020-21 Prop HHH Project Expenditure Plan (PEP). Only housing projects that are projected to execute loan
agreements and start construction in 2020-21 are included in the PEP. Prop HHH bond issuances require Mayor and
Council approval.

In addition to General Fund and Special Fund allocations included within the Proposed Budget, the State of California
awarded the City of Los Angeles two grants under the Homeless Emergency Aid Program (HEAP) and the Homeless
Housing, Assistance and Prevention Program (HHAP).

The City's $85,013,607 HEAP allocation received in October 2018 provides one-time funds to address emergency
homeless needs. These funds are supporting construction and operations costs for A Bridge Home sites, outreach
teams, hygiene facilities, and other services throughout the City. 100 percent of these must be expended by June 30,
2021. The City has expended $43,494,342 of these funds and is on track to meet the expenditure deadline.

The City was awarded a HHAP grant of $117,562,500 in March 2020. The HHAP is a one-time formula grant to provide
immediate assistance to people experiencing homelessness. These funds will be used to support A Bridge Home
(interim housing) construction and operations, prevention and diversion, rapid rehousing, outreach, hygiene facilities,
and other services. 50 percent of these funds must be obligated by May 31, 2023; and 100 percent expended by June
30, 2025. Although HHAP is a five-year grant, the City anticipates expending 100 percent of the funds within two years.

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