A federal judge overseeing a sweeping lawsuit about the homelessness crisis in Los Angeles has delayed his decision on a settlement proposed by LA County and called a hearing to discuss it further.

Judge David O. Carter on Monday told lawyers for the county and the plaintiff in the lawsuit, the LA Alliance for Human Rights, that their proposed deal fell short of providing an adequate number of beds for homeless residents suffering from mental health and substance abuse problems.

Carter did not outline any changes he expected, but said he would detail them at a hearing scheduled for the third week of January. The judge said he intended to also invite the newly elected mayor and a member of the LA County Board of Supervisors.

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The suit was brought in 2020 by the LA Alliance, a coalition that includes businesses, residents, landlords, homeless people and others who allege that inaction by the city and county has created a dangerous environment.

The alliance said in a statement that it was encouraged by the judge's decision to delay approval.

Homeless tents in LA, CA

Tents are seen along the streets of Skid Row area of Los Angeles, California, on July 22, 2022.  (AP Photo/Damian Dovarganes, File)

"While we stand by the deal that we negotiated with the city and the county, we are pleased that Judge Carter shares our desire to see that the people of Los Angeles — both unhoused and housed — receive the greatest possible benefit from this settlement," the statement said.

Skip Miller, a lawyer for LA County, called the decision to delay disappointing.

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Miller said in a statement that "the County is eager to take this major step forward" toward implementing the "landmark agreement that exemplifies the cooperation between the City of LA and County of LA in addressing homelessness."

LA County announced in September a settlement agreement that commits hundreds of millions of dollars to expand outreach and supportive services for homeless residents.

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The city of Los Angeles committed to sheltering thousands of homeless residents as part of its settlement in the lawsuit reached in April. Carter approved the city's proposal in June.