State $60M Grant Supports Skid Row Homeless Housing and Services

A Major State Investment in Skid Row

Los Angeles County announced in June 2023 that it had secured a $60 million state grant to jump-start an ambitious expansion of housing and services across Skid Row, one of the nation's largest concentrations of unsheltered homelessness. The funding comes from the Encampment Resolution Fund (ERF), administered by the California Interagency Council on Homelessness within the state's Business, Consumer Services and Housing Agency. County officials described the award as a critical infusion of resources that will help put the Skid Row Action Plan into motion and reach roughly half of the neighborhood's unhoused population within three years.

What the Grant Will Fund

The grant is designed to support a rapid, coordinated expansion of both interim and permanent housing options in and near Skid Row. Los Angeles County, the City of Los Angeles, and the Los Angeles Homeless Services Authority (LAHSA) plan to open hundreds of new interim housing beds across multiple hotels and motels in the area. About 350 of those beds will be reserved for people with the most complex health, mental health, and substance use needs, pairing a roof with enriched on-site services such as case management, behavioral health care, and medical support.

Beyond shelter, the funding will also extend outreach teams, street medicine, benefits enrollment assistance, and placement into permanent supportive housing. The goal is to replace repeated encampment sweeps with a service-first strategy that meets people where they are and moves them steadily up the housing ladder.

Who Is Eligible to Benefit

The grant itself does not flow directly to homeowners or individual renters. Instead, it supports programs operated by the County, City, LAHSA, and their nonprofit partners that serve people experiencing homelessness in the Skid Row footprint. Residents of Skid Row, including those living in tents, vehicles, single-room occupancy hotels at risk of displacement, and nearby encampments, are the intended beneficiaries. Priority is given to people with long histories of homelessness and to those with serious medical or behavioral health conditions.

People seeking help can connect with outreach teams in the field, call LA County's 211 information line, or visit a coordinated entry system access point to begin the assessment that determines eligibility for interim beds, vouchers, or permanent supportive housing units funded in part by this grant.

Fitting Into a Larger Funding Picture

The $60 million award is not a standalone effort. It supplements roughly $280 million in already committed and leveraged funding from Los Angeles County, the City of Los Angeles, LAHSA, and local public housing authorities. Combined, the resources are meant to deliver a scale of response that Skid Row has rarely seen, blending state, county, and city dollars with federal housing vouchers and philanthropic contributions.

The Encampment Resolution Fund itself was created by the state Legislature and Governor Newsom to help communities resolve specific high-need encampments with housing-focused solutions rather than displacement alone. The Skid Row award was one of the largest single ERF grants made to date.

Early Results and What Comes Next

Outcome data reported after the first year of the grant showed meaningful movement: roughly 1,975 people had been moved into interim housing and about 990 into permanent housing tied to the Skid Row effort. Officials caution that sustained progress will depend on continued state support, additional housing supply, and wraparound services that keep people stably housed once placed.

For Skid Row homeowners, small landlords, and nonprofit housing providers in adjacent neighborhoods, the grant signals continued public investment in the area. Property owners interested in leasing units to voucher holders, partnering on master-leased interim housing, or referring tenants at risk of homelessness can contact LAHSA or the County's Department of Health Services Housing for Health program to learn about participation options and landlord incentives.

Why It Matters

While the grant is directed at people experiencing homelessness rather than traditional homeowner relief, it has real implications for the broader housing ecosystem in downtown Los Angeles. Expanded interim and permanent housing reduces pressure on emergency rooms, public safety resources, and surrounding property owners, while also creating new revenue streams for landlords willing to participate in supportive housing programs. As California continues to test encampment resolution strategies, the Skid Row initiative will be closely watched as a model for how targeted state grants can accelerate local homelessness responses.