In Los Angeles, a controversial purchase of a luxury apartment building for homeless housing highlights broader issues with the city's handling of homelessness and housing affordability. The City of Los Angeles, through the Housing Authority (HACLA), spent nearly $50 million on a new building at 1654 West Florence Avenue, intended to provide homes for the homeless. Despite the significant investment, the building remains unoccupied, reflecting inefficiencies and likely mismanagement in the city's efforts to address homelessness.
This expenditure is part of a broader strategy under Project Homekey, funded by the 2020 federal CARES Act, which aimed to quickly increase housing for the homeless by acquiring existing properties. HACLA has spent over $810 million on around 2,750 units within the last four years, yet many of these properties remain vacant. Notably, HACLA often paid record prices for these acquisitions, including properties that have never been used, contributing to a staggering amount of wasted resources.
The investigation by the Westside Current reveals that, despite the city's intent to address its homelessness crisis, there is a significant disconnect between the properties purchased and their actual use. Numerous properties, some acquired for record-breaking sums, stand empty, with no clear timeline for when they will house any residents. This scenario not only represents a financial misstep but also illustrates the challenges in implementing effective homeless services in Los Angeles.