California could end homelessness by 2035 with $8.1B per year, report says

Over the past two weeks, officials in the city and county of Los Angeles have taken actions to address the region’s homelessness crisis, from L.A. Mayor Karen Bass declaring a state of emergency on homelessness to the county Board of Supervisors voting Tuesday, Dec. 20, to partner with the city in its efforts.

Now, a report out this week is drawing attention to the role the state can play in getting people off the streets.

The state could end homelessness in California by 2035 if it invested $8.1 billion annually in each of the next 12 years – $6.9 billion more than its current average annual investment – to pay for housing and support services for those facing homelessness, according to the report.

Debbie Thiele, managing director of the Corporation for Supportive Housing’s western region, said at a news conference at the Downtown Women’s Center in L.A. on Tuesday, Dec. 20, that the annual investment the state would need to make amounts to less than 3% of California’s current budget.

Of the estimated $8.1 billion needed each year in California for housing for the homeless and related services, the state and federal governments already are expected to commit $1.2 billion annually, on average.

But that leaves a gap of $6.9 billion, which Thiele and others believe is not insurmountable.

“Homelessness is solvable,” Thiele said to a group of reporters and homeless advocates. “When we quantify the need, we’re clear about where our investments are going, we can turn political will and taxpayers’ dollars into real solutions.”

The California Homeless Housing Needs Assessment, conducted by the Corporation for Supportive Housing, a national nonprofit, and the California Housing Partnership, found that the nation’s most populous state needs to:

– Build 112,527 affordable apartments.

– Subsidize the operating costs and rent of more than 225,053 households.

– Provide supportive services to 62,966 individuals and families.

– Fund interim housing or shelters for 32,235 Californians who are homeless.

After 2035, according to the analysis, ongoing costs to keep people off the streets is estimated at $4.7 billion per year for the state.

The needs assessment also found that Los Angeles County alone needs more than 55,000 affordable housing units for individuals and families, as well as more than 21,500 permanent supportive housing units for individuals and families in which a member requires mental health services, drug treatment programs or other services to help maintain stability.

Gov. Gavin Newsom is expected to release his initial budget proposal for the 2023-24 fiscal year in January, which will kick off months of budget negotiations between him and lawmakers in Sacramento.

Despite a potential $25 billion deficit in the state budget this coming fiscal year, Thiele said in an interview after the news conference that she believes the legislature can muster the votes to invest in housing for those experiencing homelessness.

About one-quarter of the nation’s homeless population are in California, according to the report.

“I think they have to. I think everybody in California thinks that this is a top issue,” she said. “We’ve heard from many legislators that this is their top issue, and with data to inform what to do to actually solve it, I think they can.”

Assemblymember Buffy Wicks, who chairs the Assembly Housing and Community Development Committee, said in a news release that the homeless crisis can no longer be dismissed.

“Homelessness has long been neglected in our state, and it has reached a tipping point that cannot be ignored,” she said. “Our budget is a reflection of our values, and it’s time to make solving this issue a priority.”

Assemblymember Laura Friedman, who represents the 44th District, which includes Burbank, Glendale and parts of L.A., said in a statement she wants better accountability measures in place if there is an increase in spending.

“We absolutely need to invest more in housing, mental health, and substance abuse treatment. We need to keep those who are struggling to pay their bills in their homes,” Friedman stated. “However, our past and current spending often lacks robust and transparent accountability measures to protect our investments. I’d like to see the needed increase in spending be tied to clear performance metrics.”

While the state has invested heavily in programs that support those facing homelessness, there hasn’t been a comprehensive assessment to give policymakers a clear understanding of the type and level of investment needed to truly end homelessness, some say.

For example, the report notes that most state dollars have gone toward new interim housing or shelters, but “without sufficient housing to move people out of shelter beds, people get bottlenecked in the shelter system without a way to exit homelessness.”

The California Homeless Housing Needs Assessment, billed as a first-of-its-kind by its authors, used data and took into account input from individuals who are facing or previously faced homelessness, as well as service providers, to determine how much money is actually needed to end homelessness statewide.

Source: Orange County Register