Lack of Federal and State Subsidies Slow Homeless Housing Development in L.A.

Projects funded by the $1.2 billion Proposition HHH homeless housing bond in Los Angeles have largely been delayed, reports Doug Smith. Los Angeles Times analysis of Los Angeles Housing and Community Investment Department data shows that since January, 57 projects have been delayed. Smith says that coronavirus alone isn't to blame for the pushed-back project timelines. One reason for the delay is that federal rent subsidies are disappearing, reports Smith: 

The Housing Authority of the City of Los Angeles, which oversees the federal Section 8 subsidies, faces a cap on the number of subsidies it can issue after committing nearly 5,000 to HHH projects. In the most recent round of applications, the agency approved fewer than 1,000 of the 3,450 rental vouchers developers sought.

In June, the city and housing authority agreed to authorize an additional 1,000 vouchers, but this increase will not be enough to subsidize the 8,403 units that have been approved for HHH funding. Some delays can be attributed to new protocols associated with the coronavirus. Delayed inspection, instability in subcontractor labor, and altered plan approval processes are also to blame for slowed development of homeless housing.