LA Spends Up To $837K Per Unit To House Just 5,600 Of Over 40,000 Homeless

In 2016, the city of Los Angeles had 28,464 Homeless. It passed HHH authorizing $1.2 billion to tackle the problem. Let’s check in on the progress…

Inquiring minds are investigating Los Angeles City Controller’s Audit Report on the Progress of Proposition HHH a 2016 measure that authorized spending $1.2 billion to tackle homelessness in LA.

Key Points

• California had 28,464 Homeless in 2016.
• LA then passed proposition HHH, authorizing $1.2 billion to address the problem.
• In early 2020, pre-Covid, the city had 41,250 homeless. There are no current homeless stats and due to Covid are undoubtedly much higher.
• The city is building units to address the problem. 1,200 units have been completed.
• 4,400 units are in construction.

LA Homelessness

Proposition HHH Cost Per Unit

• Average completed cost is $520,879 per unit
• Average cost of units underway is $596,486 per unit
• Approximately 14% of units in construction exceed $700,000 per unit.
• One project is currently estimated to cost $837,000 per unit.
• It took 3.4 years for the 1,200 completed units.
• The estimated timeline is another 4.3 years for the additional 4,400 units.

My guess is there are now 60,000 LA homeless (possibly a lowball number due to Covid). At the current average of $600,000 per unit (and rising), LA will need to spend another $36,000,000,000. – READ MORE