The STEP Fund: Keeping Angelenos Housed

Affordable housing and homelessness

Central LA East LA South LA San Gabriel Valley West LA San Fernando Valley Gateway Cities South Bay Long Beach Antelope Valley County of Los Angeles (select only if your project has a countywide benefit) City of Los Angeles (select only if your project has a citywide benefit)

Expand existing project, program, or initiative (expanding and continuing ongoing, successful work)

According to the Los Angeles Homeless Services Authority (LAHSA), nearly 60% of Angelenos become unhoused due to economic hardship. Meanwhile, 88% of extremely low-income Angelenos are rent-burdened, spending over 30% of their income on rent. Los Angeles is in the midst of a homelessness crisis, with over 75,000 people experiencing homelessness on any given night. In these conditions, a single unexpected expense—such as a medical bill or car repair—can push a household into crisis. In early 2025, Los Angeles County leaders approved a new $908 million annual homelessness budget, allocating only about 2% to homelessness prevention programs. The STEP Fund intervenes before eviction by providing fast, no-interest, and non-punitive microloans to help working Angelenos stay housed. This initiative bridges the financial gap that can lead to eviction, preventing the cascading effects of homelessness.

Better Angels is a Los Angeles-based 501(c)(3) nonprofit committed to ending homelessness by mobilizing community resources across five strategic pillars: Prevention, Services, Technology, Shelter, and Housing. This grant will support our cornerstone Prevention initiative—the STEP Fund.
The STEP Fund provides zero-interest, non-punitive emergency loans to low-income Angelenos facing imminent eviction. Once approved, funds are paid directly to landlords, utility providers, or other third parties to stop the crisis before it escalates. Our team works with each borrower to create a flexible, personalized repayment plan that supports long-term financial stability.
What sets the STEP Fund apart is its precision timing and data-driven approach. The application process is streamlined for fast response, and most loans are disbursed within seven days. Our custom-built platform tracks outcomes in real time, ensuring transparency, identifying service gaps, and guiding resource allocation. Borrowers also receive wraparound services, including financial counseling and help navigating public benefits, to improve housing retention.
Eligible applicants live in LA County, earn less than 50% of the area median income, and face housing loss within 30 days. By intervening at a critical tipping point, the STEP Fund prevents displacement, keeps families housed and connected to their communities—addressing homelessness at its root.

By October 2026, the STEP Fund will have prevented homelessness for hundreds more Angelenos through expanded outreach, faster loan processing, and enhanced post-loan support—including financial counseling and benefits navigation. During the grant cycle, we aim to double our current impact by disbursing ~40 loans per month and broadening eligibility to include foster youth and individuals exiting institutional care.
Long term, we envision a Los Angeles County where eviction is no longer a pipeline to homelessness, but a solvable, short-term crisis. Our success will help shift the system from reactive to proactive—reducing visible homelessness, keeping families stable, and restoring trust in public systems.
Through real-time data and targeted, scalable interventions, the STEP Fund offers a replicable model for smarter, faster, and more equitable solutions. Ultimately, we aspire to help LA County lead the nation in prevention-first strategies to end homelessness.