Dive Brief:

• California senators have proposed the state spend $2 billion on housing for the mentally ill homeless, The Los Angeles Times reported. The "unprecedented" move is regarded as a demonstration of state lawmakers’ frustration with the inability of cities to make significant progress toward reducing their homeless populations, particularly in Los Angeles where the demographic grew 12% from 2013 to 2015. California has approximately 116,000 homeless people, and 60% live outdoors.
• Senate President Pro Tem Kevin de Leon also proposed spending $200 million over a period of four years on temporary rent subsidies until the new housing is ready. Officials said the $2 billion, plus federal and local contributions, could provide 10,000 to 14,000 units.
• The proposal would see the state issue $2 billion in bonds, which would be repaid over a period of 20 to 30 years with money generated under the provisions of voter-approved Proposition 63, also known as the "millionaires' tax" for mental health services. The $200 million for temporary rent subsidies would come from the state’s general fund. If the Assembly and Gov. Jerry Brown can come to an agreement on the funding this spring, the state could have a final budget for the plan in June.

Dive Insight:

Homeless advocates and Los Angeles Mayor Eric Garcetti welcomed the funding, according to The Times. However, Los Angeles County Supervisor Mike Antonovich criticized the plan as an attempt to take funding decisions out of local hands, as the county, like others in California, already uses some Prop 63 money for its own housing initiatives, mental health services, crisis intervention and transition programs for people coming out of locked psychiatric facilities.

"Any directives by the state could undermine this expansion effort and delay progress being made in their own unique communities," Antonovich said in a statement.

Last October, Los Angeles County supervisors voted to set aside up to $100 million a year for affordable housing. Prior to that decision, Garcetti announced his goal of adding 100,000 units of affordable housing in Los Angeles by 2021. He also has a plan in the works that will collect developer fees to help subsidize affordable housing in the city.

Los Angeles has plenty of luxury and market-rate units under construction, but affordable housing has been lacking. And, as in many other areas of the country, wages have not kept up with housing costs, so homeless advocates say increasing the affordable housing in the city is critical.