(Bloomberg) -- Rising costs are hindering a solution for one of Los Angeles’s biggest problems: housing the homeless.

Five years after LA voters approved a $1.2 billion bond for tackling homelessness, only 14% of the 10,000 planned income-restricted supportive housing units have been built, according to a report by Controller Ron Galperin. Such projects combine subsidized housing with physical- and mental-health services, drug treatment and job training.

The average cost for each home increased 12% to $596,846 in 2021 from the previous year, with one of the latest projects estimated to be built at almost $837,000 per unit, he added. 

With more than 66,000 homeless people across Los Angeles County, the problem of housing them has emerged as one of the top issues ahead of this year’s mayoral election. The number of people on the streets has probably risen to about 80,000 during the pandemic, County Sheriff Alex Villanueva said last year. 

“The soaring cost of living and lack of affordable housing have been further compounded by the Covid-19 pandemic, leaving tens of thousands of people unhoused or at-risk throughout the region,” Galperin said on Wednesday.

The pace at which these projects are being completed is also an issue. Even with more than half under construction, almost a third remain in pre-development, he said, with most expected to open only between 2023 and 2026. 

“The cost of each unit continues to rise and the pace of construction remains inexcusably slow,” he said. 

Tents line sidewalks, parks and other public areas in the city. A report by Committee for Greater LA, which includes nonprofit, business and labor leaders, showed homelessness has become the No. 1 concern for LA residents. 

Los Angeles Conducts First Homeless Count Since Pandemic Hit

“Efforts to respond to the crisis are seen as disjointed, uncoordinated, lacking transparency, and not at the scale needed,” Miguel A. Santana, chair of the committee, said last week. “They don’t see any accountability on how tax dollars are being spent, no regional plan to evaluate progress, and no consensus on the best practices to deal with the crisis.”

Still, the efforts to house the homeless have also faced other obstacles, such as community resistance and litigation delays.

While some of Galperin’s past recommendations on speeding the review process for these projects have resulted in improvements, others weren’t adopted, he said. These included adding more interim housing, restrooms and showers, where only $58 million has been allocated.

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