Karen Bass cuts ribbon on $72M homeless housing project in LA, costing taxpayers nearly $650K per unit

Los Angeles Mayor Karen Bass has opened a 111-unit homeless housing project in a former North Hills Motel 6, part of efforts to turn hotels and motels into accommodation with support services. The project’s reported $72 million cost has renewed questions about the expense of addressing homelessness amid pressure on public budgets.

The property was bought for about $40 million in 2023, with a further $32 million spent on conversion, or roughly $648,649 per unit. Hope the Mission will provide residents with meals, case management, housing navigation and counselling. The project is part of California’s Homekey programme; since 2020, public bodies have committed about $2.6 billion to housing developments in the Los Angeles region, including acquisitions, renovations, construction and operations.