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L.A.’s New Approach to Homelessness: Clearing Camps, but Housing Challenges Persist

Seven months ago, under the U.S. Highway 101 overpass in Hollywood, tents, shacks, and rundown RVs filled both sidewalks. With more than two dozen people living there, the situation raised serious concerns for nearby residents and businesses who feared for their safety and saw their property values impacted.

Today, those sidewalks are clear—no tents, no trash, just a spotless pathway. So, what happened? It’s the result of Inside Safe, Mayor Karen Bass’ initiative aimed at addressing homelessness in Los Angeles by offering hotel rooms to individuals living in encampments. The program’s goal is to provide a temporary safe space and then move people into permanent housing as quickly as possible.

For homeowners and real estate investors in areas affected by encampments, Inside Safe has been a welcome relief. The reduction of visible homelessness improves neighborhood aesthetics and can potentially stabilize property values. However, while it’s been effective in clearing encampments and offering temporary solutions, Inside Safe has encountered significant challenges in securing long-term housing for participants.

To date, less than 6% of individuals moved into hotels through Inside Safe have transitioned to permanent housing, creating concerns about the sustainability of the program. The initiative has drawn criticism for its high costs, particularly when it comes to renting hotel rooms, and the slow pace of connecting people with affordable housing.

Despite the hurdles, the city has committed $250 million to expand the program, with hopes of making it a permanent fixture in addressing the housing crisis. As a real estate professional, it’s crucial to understand the potential impact of initiatives like Inside Safe on neighborhoods and property values, especially as more areas could see similar programs rolled out in the future.

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