A significant committee led by Los Angeles Mayor Nithya Raman, who identifies as a socialist, has decided to allocate $6.6 million to a group of activists known for their radical positions and previous legal actions against the city.
The Los Angeles City Council Committee on Housing and Homelessness has approved over $177 million in contracts aimed at tackling homelessness, which includes a considerable award to Strategic Action for a Just Economy (SAJE).
This group has some ambitious goals, like abolishing the Los Angeles Police Department, canceling the 2028 Olympics, and imposing rent freezes. The funding for SAJE comes despite their past lawsuit against the City concerning the approval of a luxury hotel project on public land, which ended in a private settlement in 2023.
The vote took place after the California Post reported on similar goals from a faction within the Democratic Socialists of America, who align with Raman and seek to take control of private properties and local supermarkets, as well as close prisons.
SAJE intends to utilize the funds for activities related to “Protection from Tenant Harassment” and to support legal assistance through the city’s Right to Attorney Program and the voter-mandated United to House LA initiative aimed at preventing homelessness.
The financial support is largely sourced from a “mansion tax” applied to real estate sales exceeding $5 million, with advocates claiming this could facilitate billions in affordable housing and prevention efforts. However, a substantial portion of this revenue has been diverted to cover administrative expenses like staffing and legal challenges, rather than actual construction of new housing units.
SAJE has a track record of high-profile activism, having previously advocated for boycotting city hotels and promoting steep rent and mortgage freezes during the pandemic. The California Post has noted that SAJE has received over $1.43 million in public funding since 2020 via various contracts in housing and public works.
These funds are partly generated through the City’s Systematic Law Enforcement Program, a fee system employed by landlords and tenants that operates outside typical public funds and lacks full transparency about its use.
Some smaller housing providers have raised concerns about this arrangement. Venice landlord Craig Ribeiro expressed frustration, stating that he felt he was funding an organization working against property owners like himself, leaving him feeling infuriated.
In response, a spokesperson for SAJE defended the usage of public funds, claiming they meticulously track spending and ensure restricted funds are not used for advocacy purposes. They pointed out that city regulations allow nonprofits to have contracts while engaging in policy activism without stringent disclosure requirements under the city’s lobbying laws.
The contract for SAJE is now set to be considered by the City Council for final approval. Raman, as chair of the influential Housing and Homelessness Committee, is pivotal in determining the future of housing projects, making housing policy a central aspect of her electoral agenda.
