The City Council Wednesday approved an additional $8.4 million to a nonprofit providing eviction defense services for tenants after city attorneys declined to approve a five-year contract, citing concerns about the bidding process.
In a unanimous vote, council members authorized more funding to the Legal Aid Foundation of Los Angeles, which is the lead contractor for Stay Housed L.A. The program provides free legal services to eligible tenants facing eviction. Los Angeles County also partners with the organization for the same service.
The contract will increase from nearly $76 million to $84.3 million, which covers a period that began in 2021.
The City Council and Mayor Karen Bass approved a new five-year contract with the organization earlier this year, but City Attorney Hydee Feldstein Soto refused to authorize it. She argued the contract should have undergone a competitive bidding process, though Housing Department officials said allowing it as a sole-source contract was fine.
In the summer, city officials authorized an initial extension of the contract for seven months through January 2026, and provided about $6.6 million in funding.
“The amendment adds additional funding to the extension to that contract,” said Councilwoman Nithya Raman, who serves as the chair of the Housing and Homelessness Committee. “I wanted to say that this was because we were asked further along in the process than usual to do an RFP (request for proposals). That RFP is proceeding, but has it a little delay.”
“To make sure that services are provided uninterrupted, we’re adding some money to this contract extension,” she added.
Officials with the nonprofit said the funding will support their work through March, but warned that gaps in services may occur if Los Angeles does not fully provide funding to the end of the fiscal year in June.
“This is a program that the council and mayor have already approved, that has been funded in Measure ULA’s spending plan, and that is critically necessary to keep renters from falling into homelessness,” Barbara Schultz, director of housing justice for the foundation, said in a statement.
“We’re grateful that today’s extension allows our work to continue, especially the $3.7 million for rental assistance. But further confusion and delay will weaken our programs, and harm L.A.’s renters. Short-term extensions limit our ability to staff legal services and threaten to leave renters in limbo when they come for help.”
The foundation has assisted the Housing Department to oversee 21 subcontractors and administer services under Measure ULA, the so-called “mansion tax” that places a tax on the sales of property over $5 million. Measure ULA funds programs such as rental assistance, outreach and education, and tenant anti-harassment initiatives, as well as other measures to boost housing production.
City officials previously approved a $425 million spending plan for dollars generated under Measure ULA.
About $39 million is intended for eviction defense services and almost $4 million for short-term rental assistance. City officials noted that none of this funding has been added to the existing contract with the foundation.
“Until last week, Stay House LA expected that the competitive RFP was due for a response by Nov. 3. Recently, the partnership learned that the RFP date has been withdrawn for comprehensive revision with no indication of a new timeline, putting services at risk,” according to the foundation. “The Stay Housed LA partnership plans to compete to continue providing service, but members of the partnership want to make sure that no renters become homeless because of an interruption in services due to delays owing to the change.”
According to the foundation, Stay Housed L.A. reached 2.3 million people, assisted more than 30,000 tenants with legal service, represented 10,000 tenants in court and delivered estimated economic benefits totaling more than $100 million since its inception in 2020.