In 2005, the Hilton Foundation gave CSH a five-year grant to launch an initiative in Los Angeles County to reduce the number of long-term homeless people, with a special focus on people with serious mental illness. The Urban Institute, which is evaluating the grant's impact, did a baseline assessment of homelessness and permanent supportive housing in 2005. A 2007 report assessed the policy and system changes that, working with others, CSH efforts had stimulated by that time. This report documents two-year changes in the level of homelessness in Los Angeles and the availability and characteristics of PSH availability. A second policy report will be available in fall 2008.