LOS ANGELES, CA — The Los Angeles City Council Wednesday approved an updated agreement that lays out a bed plan and strategy for housing thousands of people as mandated by a 2020 lawsuit.
The council voted 12-0 to approve an updated bed plan to meet provisions outlined in what is known as the Alliance Settlement Agreement. There was no discussion on the matter.
Council members further instructed the city administrative officer to report in 60 days on the financial impact to maintain all housing and shelter solutions detailed in the plan, and provide recommendations for the possible restructuring of city housing and shelters for the period in question.
According to the Alliance Settlement Agreement, Los Angeles must establish 14,000 housing and shelter solutions by June 30, 2027, and maintain at least 12,915 of those beds through June 30, 2029.
As of June 2026, the city had 9,063 open beds/housing units combined through Inside Safe (1,099), interim housing (675) and permanent supportive housing (7,289), according to data from the CAO's office. Additionally, the city expects to add another 2,000 beds via time-limited subsidies programs, and another 964 permanent supportive housing beds and 687 interim housing beds for a total of 12,714 beds in the near future.
While that is still short of the 14,000 required beds, city officials are expecting to count 4,403 beds established under a related agreement toward the grand total.
On March 10, 2020, the LA Alliance for Human Rights — a coalition of downtown residents, business owners, homeless individuals and formerly unhoused people — filed a lawsuit against the city and county for allegedly violating various state and federal laws, and their alleged failures in responding to the homelessness crisis.
That same year, the U.S. District Court for the Central District of California issued a preliminary injunction requiring the city and county to relocate and shelter all homeless individuals living near freeway overpasses, underpasses and ramps. In June 2020, the city reached an agreement with the county to create 6,700 housing units within 18 months to address the coronavirus emergency.
According to a report from the CAO's office, the city met all obligations under the COVID-19 Homelessness Roadmap Agreement, which concluded June 30, 2025.
As part of a settlement agreement reached with the LA Alliance for Human Rights in 2022, the District Court dismissed the city from the lawsuit. The court retained jurisdiction over the issue for a period of five years to enforce the terms of the settlement and appointed a special master to do so through June 2027.
Under the settlement agreement, the city must create 12,915 new shelter or housing solutions. While the type of housing or shelter interventions used toward the settlement are determined at the city's sole discretion, officials were not permitted to double up or count any interventions toward the Alliance Settlement Agreement total that opened prior to the start date of June 2022, or any interventions used to satisfy the COVID- 19 Roadmap Agreement.
In 2024, the plaintiffs sued the city, alleging non-compliance with the agreement. Plaintiffs argued the city obstructed efforts to establish encampment milestones and created fewer beds than promised.
U.S. District Court Judge David Carter, who is overseeing the case, agreed to have an outside auditor evaluate the city's compliance.
In June 2025, Carter granted in part and denied in part the plaintiff's motions for settlement compliance, finding that there was no breach under the Roadmap Agreement but breaches under the LA Alliance Settlement — issues related to outdated bed plans, missed milestones and inadequate data.
The court ordered the city to update its bed plan to meet the creation of 12,915 shelter or housing solutions by June 30, 2027. In spring 2026, the court approved further requirements related to reporting, increasing the number of shelter solutions, and extended the period for the agreement that the city must meet.
Los Angeles County previously agreed to reimburse the city for services at interim housing sites counting toward the city's settlement obligations. Reimbursement for services is limited to a maximum of 3,100 interim housing units and a total amount not to exceed $259 million according to a report from the CAO's office. County officials also agreed to contract for and fund permanent supportive housing services.
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