March 29, 2024 #1 Local News, Forum, Information and Event Source for Venice Beach, California.

LA City Controller Report Shows Average Cost of Supportive Housing Unit Nearly $600,000

City Controller report details rising costs for supportive housing

By Dolores Quintana

In a report titled The Problems and Progress of Prop. HHH, City Controller Ron Galperin detailed the rising costs faced by the City of Los Angeles to build permanent supportive housing to deal with the issue of the unhoused people on city streets. 

Proposition HHH was passed by California voters in 2016 as a $1.2 billion bond measure that promised to fund 10,000 units of housing for the unhoused. The goals set by the bond measure were slightly unrealistic since they assumed that housing costs would not rise sharply. Of course, no one could have foreseen the financial effects of a worldwide pandemic that is entering its third year. 

Galperin’s office released a previous report in 2019 that estimated the average cost of building one unit of Prop. HHH housing at $507,000 per unit. Costs have only increased in the next two years with per unit cost averaging $530,000 in 2020 and mushrooming to almost $600,000 per unit in 2021. 

“Although Los Angeles has made some progress with Proposition HHH, it hasn’t been enough. The costs are too high and the pace is too slow to address the tragedy on our streets. If the City doesn’t learn from its mistakes, it risks repeating them. Angelenos, sheltered and unsheltered, cannot afford that to happen,” Galperin said in a statement. 

The city has 65 supportive housing projects that are under construction with funding from Prop. HHH for a total of 4,300 units. Galperin’s estimates say that the average per unit cost is currently $596,000, with some projects at a low of $309,000 per unit but with some as high as an astounding $765,000 per unit. Of this total of 4,300 units under construction, the Controller’s estimate is that more than 14% of the 4,300 total projects cost more than $700,000 each.

There are an additional 27 Prop. HHH projects that are moving through the design stage that would create an additional 1,880 units of housing. Of those projects in the planning stages average a cost of $580,000 per unit, with the low end of $372,000 per unit and the high end rising to $837,000 per unit. 

The Prop. HHH program is on track to provide a little over 8,000 units of  brand new housing, only 7,000 of which would be supportive housing with a total of 125 projects. 

It is Galperin’s recommendation that the City should pass additional measures to help make the process of approvals easier and to consider using funds from Prop. HHH to buy buildings that already exist to convert into permanent supportive housing, much like the Project Homekey program or build interim housing instead. Galperin repeated his recommendation that the City should think twice about projects that have stalled or that cost too much. City officials did not respond positively to Galperin when he first made this recommendation. 

It is possible that officials might be able to maneuver Prop. HHH fund away from boondoggle projects but that doesn’t solve the overall problem with the price of construction in Los Angeles.

It’s not just supportive housing that is costly, all types of construction are being affected by rising prices in the Los Angeles area including infrastructure projects and market rate construction.

For example, Metro Los Angeles has a proposal on the table to split the Metro Gold Line extension or Eastline L into smaller stages because of rising prices that makes the line more expensive than the money that has been allocated to build it.

In fact, a report on construction costs in Los Angeles from the UC Riverside School of Business shows that the per unit cost average in Los Angeles for new housing is almost $580,000 for any type of construction project no matter who is building it. It speaks to the larger problem with the real estate market in the Los Angeles area which in turn has and continues to exacerbate the issue of homelessness.

Related Posts

Pacific Resident Theatre Presents Wolf Mankowitz’s “The Bespoke Overcoat”

March 29, 2024

March 29, 2024

Mankowitz Later Adapted the Play Into an Oscar-Winning Short Film Pacific Resident Theatre is presenting Wolf Mankowitz’s “The Bespoke Overcoat,”...

Hotel Workers to Speak Out on Harassment Endured at Santa Monica Hampton Inn

March 29, 2024

March 29, 2024

The Hotel Is One of Five Hotels in the Charter City That Are Still in a Labor Dispute By Zach...

Broadway Elementary to Host Spring Auction

March 28, 2024

March 28, 2024

Proceeds Will Directly Benefit the Students of Broadway Elementary Broadway Elementary School is hosting its annual Spring Auction, featuring a...

Venice’s Fig Tree Cafe to Host Solar Eclipse Viewing Experience

March 28, 2024

March 28, 2024

Patrons can procure a specially curated takeaway box from to enjoy an unobstructed view Fig Tree, the beachside café in...

 (Video) Philz Coffee Set to Close Westside Location Next Month

March 27, 2024

March 27, 2024

The Franchise Recently Made Headlines for Changing Headquarters @yovenicenews Philz is closing its Santa Monica shop #coffeeaddict #coffee #coffeeshop #losangeles...

Venice Shorts: Should DogTown Be Renamed Tentsville, USA?

March 27, 2024

March 27, 2024

Two Tents Saddled Directly on Lincoln at the Entrance of Just Tires! By Nick Antonicello Just Tires, located at 801...

(Video) Workers Strike at Luxury Hotel in Downtown Santa Monica

March 27, 2024

March 27, 2024

Meanwhile, Unite Here Local 11 Recently Announced a Contract Was Ratified at 34 Hotels @yovenicenews Workers are striking at Proper...

Over Five Miles of Venice Blvd. to Temporarily Close, Become Public Park in April

March 26, 2024

March 26, 2024

The Initiative, Which Started in 2010, Aims to Connect Communities and Promote Sustainable Transportation Options On Sunday, April 21 from...

Q + A on Building Possibilities for CD-11’s Bridge Housing Parcel

March 26, 2024

March 26, 2024

We Asked Mark Ryavec to Weigh-in on His Initial Assessment and Reaction to What Is Being Proposed By Nick Antonicello...

City Commences Phase 2 of Beach Restoration Project

March 26, 2024

March 26, 2024

The Project Will Enlarge the Habitat for Significant Native Species, Including the Federally Threatened Western Snowy Plover Phase 2 of...

Venice Shorts: Homeless Man Struck by Car on Lincoln Blvd

March 25, 2024

March 25, 2024

Pedestrian Hit While Crossing With a Shopping Cart Friday Morning By Nick Antonicello A homeless individual pushing a shopping cart...

Venice Shorts: Brooks “Pop Up” Through April 21

March 25, 2024

March 25, 2024

More Cushion. More Softness. Less Gravity. By Nick Antonicello Hey, L.A.! Run by the Brooks Venice “Pop-up” to find the...

SMC Unveils Spring 2024 Issue of Acclaimed Literary Journal, Author Readings Coming in April

March 25, 2024

March 25, 2024

The Issue Presents a Mix of New, Returning, and Debut Writers, Reflecting Diversity and Enduring Relationships Santa Monica College announced...

American Legion Palisades to Host Lounge Night and Free “Predator” Screening with Actor Richard Chaves

March 25, 2024

March 25, 2024

Entry for Adults Is $10, With Proceeds Benefiting a Deserving Veterans Nonprofit American Legion Palisades Post 283 invites all to...

Animal Rights Groups Demand an End to Turtle Racing at Brennan’s Pub

March 24, 2024

March 24, 2024

The Organization Says Its Tried to Contact the Westside Bar for Months By Zach Armstrong Among its numerous entertainment events...