Here's a story from NPR .
Here's the article in the CSM to which the story refers.
Here is the website for the Midnight Mission.
I took a brief look at many of the pages on the mission's website, and it seems to be independent of the city. The CSM article infers (though doesn't come right out and say) that the mission is a project of the city of LA, leaving the way open for anyone to conclude that it is funded by city money.
The mission's faq says -- "The Midnight Mission relies almost entirely on community-based private donations. On a limited basis we will accept government based funding. In fact, a very small percentage of our operating budget has come from government sources like funds used for Project Safe Sleep."
And I'm not sure I would call open dorms with concrete floors "posh." Though, compared to some of the conditions I've slept in while working on the Pine Ridge Reservation in South Dakota, I'm sure the midnight mission is heavenly.