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A sales tax approved by voters in November came into effect Tuesday to fund Los Angeles County’s homelessness crisis program.
This increase means that people in unincorporated areas and cities who did not levitate sales tax approved by their voters will increase from 9.5% to 9.75%. Taxes are expected to generate $1 billion a year.
So where will the money go? Here’s what you need to know about the measures behind the sales tax hike:
What is Major A?
Major A was one of three county measures that were featured in the November poll. Also known as affordable housing, homeless solutions and prevention, has now approved Measure A with a margin of 58% to 42%.
The half-cent sales tax provided by Measure A will eliminate the quarter-cent county sales tax approved by voters in 2017, replacing the county sales tax, known as Measure H. The sales tax approved in the 2017 measurement had a lifespan of 10 years and was due to expire in 2027.
Measurement A has no expiration date. It will remain permanent unless it is abolished by voters.
The measure was eligible for voting by the Citizens’ Initiative. That is, they were exempt from the two-thirds of the majority required by government-initiated taxes. A simple majority was required to pass the preparations.
Advocates argued that if Measurement H expires without any substitute for a wide range of resources like funding services or new affordable housing, the local homeless crisis would exacerbate.
Critics say enough money has already been spent on the homeless crisis, with few results. The Howard Jarvis Taxpayers Association wrote an official statement against Measure A, saying the funds would go to initiatives funded by Measure H since 2017 when the issue failed to resolve.
How are fund measurements used?
According to Major A’s language, voters passed a half-cent sales tax and funded the county’s efforts to combat “affluent housing, mental health and addiction handling, and income for children, families, veterans, domestic violence survivors, elderly people, and disabled people experiencing homelessness to people with disabilities.”
Approximately 60% of the revenue generated by the sales tax covers the costs of homeless services, with 15% of which is distributed to cities based on the annual point-in-time count of homeless people. An additional 35.75% will support LA County’s affordable housing solutions agency created in 2023 to oversee homelessness solutions established by the state legislature in 2023.
The measure also requires regular monitoring and reporting of the following outcomes:
Increase the number of people moving from street camps to permanent housing. Reduces the number of people with mental illness or substance use disorders. Increase the number of people leaving homeless forever. It prevents people from becoming homeless. Increase the number of affordable housing units in Los Angeles County.
Elected officials and related agencies must also establish targets every five years and track their progress.
The LA County Board of Supervisors votes to retrieve taxes to manage it on its own after the audit discovers that billions of dollars of funds are inadequate. Conan Nolan reports NBC4 News at 5pm on March 28, 2025.
What happens next?
The LA County Board of Supervisors approved the Homeless Funding Plan last week. This allocated $656 million from Measure A to $209 million for Measure H funding and $42.6 million for state grants.
A vote for the funding plan is scheduled for Tuesday. If approved, the county will directly control the money currently sent to the Los Angeles Department of Homeless Services, also known as Rasa, the city-county joint agency.
The Los Angeles City Council approved a similar complaint, calling for research to bypass Lahsa and administer direct contracts with homeless service providers.
Both agencies have taken steps to limit Lahasa’s power over funds following reports that they allegedly misused or misconducted the funds, among other issues. The Homeless Agency was established in 1993 to deal with homelessness in Los Angeles County.
LAHSA officials challenged some of the audit findings and urged officials to continue the partnership. Homeless agents have begun efforts to increase transparency through the creation of accessible databases. This will better track the outcome of available shelter beds and services.
Lahasa is a key entity that coordinates and manages federal, state, county and urban funding for shelter, housing and services to those experiencing homelessness across LA continuous care, including all cities in the region, except Long Beach, Pasadena and Glendale.
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