INSIGHT

How LA County’s Measure A transforms nonprofit grant management: New requirements and opportunities 

February 26, 2025

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Los Angeles County’s recently approved Measure A marks a significant shift in how nonprofits serving the homeless population will operate and be held accountable. Set to take effect on April 1, 2025, this transformative measure not only replaces the existing Measure H but also introduces comprehensive new requirements for grant recipients while substantially increasing available funding to $1.076 billion annually. 

A new era of funding and accountability 

The measure represents a bold step forward in addressing LA County’s homelessness crisis, introducing a 0.5% sales tax that will fund both existing homeless services and expanded preventive measures. For nonprofits receiving grants, this means access to potentially larger funding pools but also adherence to stricter accountability standards. 

Key financial changes 

The increased funding comes with specific allocations: 

• 60% to LA County for comprehensive homelessness services 
• 35.75% to the Housing Agency for affordable housing and prevention 
• 3% to LACDA for local housing production 
• 1.25% to accountability, data and research 

New requirements for grant recipients 

With Measure A’s implementation, nonprofits must prepare for significant operational changes and enhanced reporting requirements. These new standards aim to create a more transparent and efficient system for tracking the impact of homeless services. Organizations will need to evaluate their current systems and potentially invest in new tools, training and professional advisors with expertise in accounting, audit and data management systems. 

Universal data and reporting standards 

One of the most significant changes is the implementation of a Universal Data and Accountability Plan. Nonprofits must now: 

• Report expenditures using standardized methods 
• Participate in coordinated data sharing systems 
• Submit annual reports by October 1st detailing tax usage and project status
• Make reports publicly available for five years 
• Track and report uniform metrics across all programs 

Enhanced labor standards 

The measure introduces substantial workforce protections and requirements: 

• Market-aligned payment rates 
• Built-in cost-of-living adjustments
• Provisions for wage increases and incentives
• Timely payment requirements to prevent financial strain
• Emphasis on multi-year contracts for organizational stability 

Performance metrics and goals 

Grant recipients must demonstrate progress toward five core objectives: 

1. Increasing transitions from encampments to permanent housing 

2. Reducing homelessness among those with mental illness/substance use disorders 

3. Improving permanent exits from homelessness 

4. Preventing new cases of homelessness 

5. Expanding affordable housing availability 

Performance against these goals will be evaluated every five years, with the possibility of funding reallocation if targets aren’t met. 

What you need to know – Implementation timeline and support 

The measure takes effect April 1, 2025, giving nonprofits time to prepare. A labor council will be established by June 2025 to address: 

• Pay equity issues 
• Career development opportunities 
• Compensation standardization 
• Cost-of-living adjustment mechanisms 

How BPM can support compliance 

For nonprofits navigating Measure A, BPM’s accounting and audit professionals can provide comprehensive support to ensure a smooth transition. With extensive experience serving nonprofit organizations, BPM’s team can help develop efficient reporting processes, maintain compliance standards and maximize the impact of increased funding opportunities.  

Now is the time for organizations to begin preparing for these changes with the right financial partner. 

This article is intended as an overview of Measure A’s impact on nonprofit grant recipients. For specific guidance on compliance requirements, organizations should consult with legal and financial professionals.