Committee retroactively raises winter-shelter bed rate to match county figure after LAHSA, CAO confirm miscommunication

The Housing and Homelessness Committee approved an amendment to item 6 on April 10 that made the seasonal winter shelter bed rate retroactive for the just-completed shelter season.

Background: The report presented a recommendation to set a new bed rate for future fiscal years. LAHSA and CAO testimony revealed a miscommunication about which rate applied to the winter season that just ended: some providers believed the $89 rate — consistent with county interim housing rates — should apply, while others were working under a $60 assumption. LAHSA said providers would not have operated this season at a $60 rate and that the county had updated rates to $89 to align with system KPIs.

Committee action: Councilmember Blumenfield moved and the committee adopted language to make the $89 bed rate effective retroactively for the just‑ended winter‑shelter season (and to pursue Blumenfield’s voucher-focused recommendations for the next fiscal year). The item was approved as amended: Raman yes, Blumenfield aye, McCusker yes.

Key points from the record:
- Kelsea Madigan, LAHSA Director of Interim Housing, confirmed a miscommunication and said the county had updated winter shelter bed rates to $89 in alignment with the interim housing system.
- CAO staff explained that city approval of any mid‑fiscal rate changes typically occurs in the budget process; LAHSA accounted for the $89 rate in its internal budgeting and used ESG funding to cover hotel vouchers for the season.

Implication: Applying the higher rate retroactively will align city payments with LAHSA and county accounting for the past season. CLA/CAO and LAHSA were asked to confirm that vouchers and bed counts remain unchanged and to reconcile budget lines. Council directed staff to include Blumenfield’s recommendations for next fiscal year to explore voucher expansions and county coordination.

Next steps: The committee adopted the amendment and directed staff to return with reconciled figures and instructions for implementation. The item passed and will be reflected in the city’s reconciliations for FY25–26.