In 2004, the Hilton Foundation awarded the Corporation for Supportive Housing a five-year grant of $8 million to promote changes in city, county, and state systems that would reduce homelessness in Los Angeles County, especially among people with serious mental illness. CSH uses these resources to bring people together, facilitate planning and implementation, provide expert advice, and help span the boundaries of different systems that have long stood separate and apart. This report covers developments in the grant's first two years that address the research question: What changes have state and/or local public agencies and homeless assistance providers made that reduce homelessness, increase housing options, develop and improve supportive services, and promote the development and operation of permanent supportive housing units and the services that tenants need to achieve stability? (Author)