@SecondGrace.LA

@secondgracela.bsky.social

SecondGrace is a community of people committed to ending homelessness in LA County. Join us https://secondgrace.la/

While Washington dismantles LA's homelessness funding, a different housing infrastructure is quietly growing. No press office. No HUD line item. Just land trusts, church parking lots, and senior housing that's held its ground for 50 years.

Now the FY2027 federal budget proposes zeroing out CDBG, HOME, and the Continuum of Care — the coordination holding the system together. Disinvestment doesn't save the money. It moves the cost downstream: to ERs, jails, and people.

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We keep asking whether LA can afford to invest in housing. The real question is whether we can afford not to. New from Letters to the Housed — what disinvestment actually costs, and who ends up paying. A thread.

A broken calculator depicts our current article: The Investment We Chose Not to Make, Los Angeles Housing Cost from Letters to the Housed by Paul Asplund of SecondGrace.LA

"A policy decision dressed up as a fraud investigation." LAHSA's complaint says a HUD official recommended cutting LA off a year before the fraud probe existed. What does oversight mean when the conclusion comes first? 🔗https://buff.ly/BZctRiK

A senior HUD appointee reportedly said in July 2025 he'd recommend zero HUD funding for LA. That's a year before the fraud investigation that "justified" the suspension existed. A policy decision dressed up as a fraud investigation.

HUD's letter cited $513M in "unspent funds" as proof of LAHSA's failure. That figure was from a City of LA budget announcement. LAHSA isn't even named in it. The one audit that governs federal compliance found LAHSA compliant. The letter skips it.

On June 30, LAHSA sued the federal government. Same day: 284 staff worked their last shift. Same day: LAHSA filed suit against HUD & Sec. Scott Turner over its suspended homelessness funding. I read the complaint. What stood out.

Scaled to LA County's homeless population: Healthcare savings of $4–6 billion. GDP impact above $85 billion. 23,000 fewer people experiencing homelessness by 2050. Projections, not guarantees. They assume sustained investment that doesn't currently exist here.

The reduced-funding scenario, closest to what many North American cities are doing now, produces negative $8.8 billion in cumulative social value over 25 years. For every dollar saved on the front end, more than a dollar is lost on the back end. We pay either way.

A new study from Toronto modeled five public housing investment scenarios over 25 years. Every dollar invested in the combined pathway returns $2.80 in measurable value. Every dollar withheld costs more than a dollar downstream. The math is Canadian. The logic is universal.