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Los Angeles County’s Historic $1.53 Billion Settlement to Combat Homelessness Receives Federal Approval

Agreement Provides 3,000 Beds and Expands Support for Mental Health and Substance Use

By Dolores Quintana

A federal court has granted approval for the groundbreaking settlement between Los Angeles County and the LA Alliance for Human Rights. This historic agreement allocates up to $1.24 billion in additional funding to establish 3,000 beds for individuals dealing with mental health and substance use disorders and experiencing homelessness. The settlement also includes provisions for expanding street-based outreach and wraparound services.

In addition to this commitment, Los Angeles County has previously pledged $293 million in a separate agreement related to a three-and-a-half-year lawsuit. This funding is designated for providing 6,700 beds for homeless individuals near freeways and unhoused seniors. Collectively, the County’s comprehensive commitment amounts to an unprecedented $1.53 billion. These efforts align with the County’s ongoing initiatives to intensify and expedite actions aimed at addressing homelessness following the Board of Supervisors’ declaration of a state of emergency in January.

The settlement between LA County and LA Alliance encompasses numerous resources to combat the homelessness crisis, including these key items:

  1. Establishment of 3,000 new mental health and substance use disorder beds.
  2. Allocation of 450 new subsidies for board-and-care beds, prioritizing the most vulnerable, including elderly and disabled individuals.
  3. An increase in the number of specialized outreach teams from 27.5 to 44, dedicated to serving individuals facing significant housing barriers due to physical, mental, and behavioral challenges.
  4. A significant increase in the number of County Multi-Disciplinary Teams conducting clinical outreach in the City — from 22 to 34 teams — ensuring there is at least one team in each LA City Council District. These teams have expertise in medical and mental health, substance use disorders, case management, and peer support.
  5. Work with the City to make City- and/or County-owned land available within the City for new interim or permanent supportive housing sites.
  6. Provision of a comprehensive array of supportive services for eligible occupants of over 13,000 permanent and interim housing beds, as committed by the City of Los Angeles in their own settlement with LA Alliance.

Supervisor Lindsey P. Horvath, Third District, said, via a press release, “In this time of crisis, the County has committed to a historic expansion of services and specialized beds for our acutely ill – all of which are expedited through our emergency declaration on homelessness – and we will continue to lead with urgency to meet the moment and deliver the results our communities need.  am glad that the County and City of LA, together, can return our focus to the work ahead and move forward in our mutual commitment to meet this humanitarian crisis with the urgency it deserves and at the scale required.”

A federal monitor will play a pivotal role in assisting the court in overseeing the terms of the settlement. This agreement takes effect upon the court’s order dismissing the plaintiffs’ claims against the County and concludes on June 30, 2027.

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