LOS ANGELES, CA - OCTOBER 12: A homeless man sleeps next to a walker on a sidewalk where people wake up before dawn to dismantle their beds and encampments before businesses open October 12, 2007 in the downtown Skid Row area of Los Angeles, California. Los Angeles city officials recently settled a 2003 lawsuit brought by advocates for homeless skid row residents who complained of being arrested for sleeping on sidewalks, despite having nowhere else to go. Under the new deal, people can sleep on Los Angeles sidewalks between 9 p.m. to 6 a.m. as long as they do not block doorways or driveways, or completely block the sidewalk. Los Angeles is often referred to as the homeless capital of the nation because of its estimated 40,144 people living on city streets and 73,000 homeless spread across the county, according to recent figures attributed to the Los Angeles Homeless Services Authority, The 73,000 homeless include 10,000 minors, 24,505 people suffering from a mental illness, 8,453 military veterans, and nearly 7,200 victims of domestic abuse. (Photo by David McNew/Getty Images)
About half the $32 million cost for converting the building will come from the city's Redevelopment Agency.
The city hopes to raise the rest by applying for federal tax credits.
The 225-bed shelter will include space for a medical clinic and social service providers.