L.A. hands $107M ‘blank check’ to homeless group who constantly sues the city

The Los Angeles City Council has entered a $106.6 million, three-year contract for eviction defense and prevention services with a nonprofit legal aid group that has repeatedly sued the city over homeless-related issues.

In a 12-1 vote, the council approved the funding contract with the Legal Aid Foundation of Los Angeles (LAFLA) on March 10 as part of a package that also includes funding for other community groups for outreach and homeless protection. The City Attorney’s Office had raised concerns about the oversight and review of the contract, which carries out a program that was launched in 2021 to promote housing stability in the city.

“The city’s eviction defense program is a city program put in place by the Los Angeles City Council and was never in jeopardy,” Ivor Pine, spokesman for City Attorney Hydee Feldstein Soto, told the Southern California Record in an email. “What was in question was a $177 million blank check contract to … LAFLA and its partners that did not provide for appropriate oversight, reports and invoice review.”

Other groups that will receive funds during the three-year program include the Liberty Hill Foundation, Strategic Actions for a Just Economy (SAJE) and Southern California Housing Rights Center. Program funds come from the city’s United to House LA (ULA) property tax measure, also referred to as the “mansion tax.”

Feldstein Soto addressed the problems in the original proposal through a two-step process that won the council’s support, Pine said.

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“She called for both a required competitive bidding process and proper transparency, reporting and invoice review – and City Council voted to approve both actions,” he said. “As the contract amount exceeds the budget of numerous city departments, her concerns were grounded in good governance and a commitment to transparency when it comes to the use of public taxpayer dollars.”

LAFLA has sued the city of L.A. in a dozen cases, including one that attempted to block the city from following a state law to dismantle inoperable recreational vehicles and promote community safety, according to Pine.

“Eliminating pathways to possible corruption in city government or lax treatment of charter and oversight requirements has been a top priority since Feldstein Soto took office,” he said. “Enforcing provisions of the City Charter to mandate a competitive bidding process instead of automatic issuance of no-bid, sole source contracts has been a cornerstone of this commitment.”

From mid-2021 through November of last year, the city’s Eviction Defense Program has provided legal assistance to about 24,500 households, helping tenants to remain in their homes during the course of the eviction process, according to the city’s Housing Department.

Among the cases filed against the city by LAFLA was one that reached the federal Ninth Circuit Court of Appeals, which last month affirmed a lower court ruling prohibiting the city from discarding “bulky items” (any item that can’t fit in a 60-gallon container) belonging to homeless individuals. That ruling may expose Los Angeles to more damages and attorney-fee awards, according to the New York Post.

The Eviction Defense Program will also provide services to ensure city residents have a better understanding of tenant rights, provide protections against tenant harassment and offer short-term emergency assistance to help prevent evictions, according to the Housing Department.

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