Jonathan Sanabria
Program Officer, Homelessness
The Skid Row Housing Trust was once a national model for permanent supportive housing (PSH), and its buildings are a testament to the belief that housing with dignity and support could transform lives. When the organization collapsed in 2022, it sent shockwaves through Los Angeles and across the country, raising urgent questions about the financial structures underpinning the PSH sector.
With support from the Conrad N. Hilton Foundation, the report Redesign Required: Lessons for Permanent Supportive Housing from Skid Row Housing Trust Buildings offers the first comprehensive economic analysis of the Trust’s 29 buildings. It asks the hard but necessary questions: What financial forces contributed to the Trust’s failure, and how can the sector avoid similar outcomes for other PSH Developers?
As lead researcher Claire Knowlton writes, “There is extensive evidence that permanent supportive housing works to address homelessness, but current funding practices undermine the economic viability of PSH providers.” This report clarifies that rental subsidies often fall far below what’s required to operate safe, stable housing, and that without reform, even the most mission-driven providers are set up to fail.
“To deliver on the promise of permanent supportive housing,” the authors conclude, “the sector must adopt a clear-eyed view of what it takes to provide housing and services to high acuity residents. We need fair rental subsidies, a shared mental model for stewarding buildings decades into the future, and relevant financial data to guide decision-making.”
At the Hilton Foundation, we believe lasting solutions to homelessness demand rigorous analysis, honest reflection, and bold action. We hope this report informs not only how we understand what went wrong at the Trust but also how we design a more resilient, equitable future for permanent supportive housing.