Item No.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: OFFICE OF THE CITY MANAGER
BY: SERGIO COREAS, HOMELESSNESS SOLUTIONS AND HOUSING
MANAGER
DATE: SEPTEMBER 23, 2025
SUBJECT: APPROVAL OF MEASURE A FUNDING AGREEMENT FOR HOUSING
AND HOMELESSNESS PROGRAMS
EXECUTIVE SUMMARY
The City Council will consider approval of a Funding Agreement with the County of Los Angeles for receipt of Measure A funds dedicated to housing and homelessness programs. Measure A, approved by Los Angeles County voters in November 2024, established a one-half cent sales tax to provide an ongoing source of funding for homelessness prevention, interim and permanent housing, supportive services, and outreach programs. Measure A is administered by the Los Angeles County Chief Executive Office through its Homeless Initiative Division and will generate an estimated $1 billion annually across the County. Downey has been awarded a direct Local Solutions Fund (LSF) allocation under Measure A totaling $502,195 for Fiscal Year 2025–2026.
Execution of the Funding Agreement is required in order for the City to access these resources and begin program implementation. The funding will support a range of initiatives identified in the City’s Scope of Work, including expansion of interim shelter capacity, provision of short-term rental subsidies, and emergency rental arrears assistance. Approval of this agreement will provide the City with a dedicated funding stream for homelessness programs.
RECOMMENDATION
That the City Council:
Approve the Measure A Funding Agreement with the County of Los Angeles for the term beginning September 23, 2025, through June 30, 2031, and authorize the City Manager, or designee, to execute all documents necessary to implement the agreement and receive the City’s allocation.
APPROVAL OF MEASURE A FUNDING AGREEMENT FOR HOUSING AND HOMELESSNESS
PROGRAMS
SEPTEMBER 23, 2025
PAGE 2
BACKGROUND
On November 5, 2024, Los Angeles County voters approved Measure A, a new half-cent sales tax replacing the expiring Measure H one-quarter-cent tax. While Measure H provided significant resources for homelessness programs, funds were largely administered at the County level. Measure A strengthens local government participation by dedicating 15 percent of annual revenues to the Local Solutions Fund, which is distributed directly to cities, councils of government, and unincorporated areas. This direct allocation provides cities with the flexibility and resources to implement tailored strategies while still aligning with countywide goals.
The City of Downey contributes approximately $13 Million annually in Measure A sales tax revenue and, under the Local Solutions Fund, the City will receive a direct allocation of $502,195 for Fiscal Year 2025-2026. To receive these funds, the City must execute a Funding Agreement with the County.
ANALYSIS
The Measure A Funding Agreement outlines the terms and conditions for the City’s allocation, including reporting, monitoring, and compliance requirements. The City’s approved Scope of Work identifies three primary initiatives to be supported by Measure A resources. First, the City will fund six additional interim shelter beds at the Salvation Army Bell Shelter, expanding its total reserved capacity to twelve beds for Downey residents. These beds will provide immediate housing options coupled with wraparound services to facilitate transitions to permanent housing. Second, Measure A funds will provide time-limited rental subsidies for households at risk of homelessness, administered through The Whole Child, a long-standing City partner. Third, the agreement includes a rental arrears prevention program offering one-time financial assistance to households facing eviction due to back rent.
Program Area Description
Interim Housing Six additional shelter beds reserved at Salvation Army Bell Shelter.
Homelessness
Prevention
Time-limited rental subsidies for households at risk of homelessness.
Rental Arrears
Program
One-time assistance to households facing eviction due to back rent.
Housing Trust
Contribution to the Gateway Cities Affordable Housing Trust to support regional affordable housing development and leverage additional funding opportunities.
APPROVAL OF MEASURE A FUNDING AGREEMENT FOR HOUSING AND HOMELESSNESS
PROGRAMS
SEPTEMBER 23, 2025
PAGE 3
These initiatives are consistent with the City’s adopted Homelessness Plan and complement existing programs supported through the Permanent Local Housing Allocation (PLHA), Community Development Block Grant (CDBG), and regional partnerships such as the Gateway Cities Affordable Housing Trust. Together, they represent a balanced approach that addresses immediate housing needs, prevents new instances of homelessness, and builds long-term housing stability.
The County’s allocation methodology for Measure A is based primarily on the annual Los Angeles Homeless Services Authority (LAHSA) Point-in-Time Count, supplemented by data from the American Community Survey. While this methodology ensures consistency, it does not fully capture the City’s locally verified census data collected in partnership with City Net, which indicates higher needs than reflected in LAHSA’s count. For this reason, staff will continue to advocate for future refinements to the funding methodology that better incorporate locally collected data.
CITY COUNCIL PRIORITIES
Economic Vibrancy
Quality of Life, Safety & Infrastructure
Public Engagement
FISCAL IMPACT
Approval of the recommended action will result in the expenditure of $502,195 from the Grants & Aid Fund Homelessness Solutions Expense Account number 27-4-1221-0700 as previously approved as part of the Fiscal Year 2025-2026 operating budget.
ATTACHMENTS
Attachment A: Measure A Agreement HI-25-019
Administration &
Oversight
Reporting, compliance, and program monitoring required under Measure A.
ATTACHMENT A