L.A. Homeless Spending Lacks Oversight, Accountability, Scathing Audit Finds
Homeless Programs Funded by the City of Los Angeles are a Virtual Black Hole when it Comes to Oversight and Tracking of Outcomes
A court-ordered, independent audit has found that homeless programs funded by the city of Los Angeles are a virtual black hole when it comes to oversight and tracking of outcomes.
The audit, released on Thursday, was conducted by Alvarez & Marsal, a global consulting firm. It looked at four years of homeless services managed by the Los Angeles Homeless Services Authority (LAHSA) from June 1, 2020, through June 30, 2024.
Gaps in Documentation Complicate Efforts to Track Expenditures
A&M said it encountered information gaps and incomplete data that hindered its ability to assess the results of approximately $2.3 billion in homeless spending over that time period.
“Such gaps in documentation complicated efforts to track expenditures comprehensively, highlighting the need for more accurate recordkeeping within LAHSA’s financial and performance oversight processes,” A&M said in its executive summary.
Independent Contractors Operate under Vague Arrangements with Weak Oversight
In many instances, auditors found that independent contractors operated under vague arrangements with weak oversight, and the money they received couldn’t be properly accounted for.
Exit Rate of Homeless Individuals into Permanent Housing Questioned
In one example, A&M’s team found inconsistencies with the “exit rate” of homeless individuals into permanent housing during the 2023-24 fiscal year.
“A sample of sites reported a median permanent housing exit rate of approximately 22.0%, whereas 47.8% of exits resulted in a return to homelessness, exceeding the rate of exits to permanent housing,” the report stated.
LAHSA Frequently Approved Payments without Verifying Services Provided
Auditors also found that LAHSA frequently approved payments to contractors before verifying that services were provided.
Councilwoman Monica Rodriguez Criticizes LAHSA
Responding to A&M’s report, Councilwoman Monica Rodriguez labeled LAHSA a “modern-day Titanic.”
“The audit’s findings confirm what I’ve repeatedly warned about—billions have been wasted on homelessness without oversight, accountability, or results,” Rodriguez told KTLA on Friday. “For over a year, I’ve pushed legislation to end this failed arrangement, while my colleagues have stalled for more than a year, pouring taxpayer dollars into a system and programs that continue to fail. This blatant mismanagement reflects leadership failure and it is time to untether the city from this modern-day Titanic known as LAHSA.”
The L.A. Times obtained a statement from LAHSA acknowledging the “siloed and fragmented nature of our region’s homeless response” for the oversight and accountability issues.
Background on the Audit and the Lawsuit
The audit was ordered by U.S. District Judge David O. Carter and stemmed from a 2020 lawsuit filed by the L.A. Alliance for Human Rights. The Alliance, comprised of local business owners and “concerned residents,” alleged the city had failed to protect public health and safety by allowing rampant homelessness.
Mayor Karen Bass’ Inside Safe Program
On her first day in office in 2022, Mayor Karen Bass declared a state of emergency on homelessness and launched her hallmark Inside Safe program. Among its goals is to dramatically lower the cost of building affordable and temporary housing, get people off the streets, and provide them with various services.
California Governor Gavin Newsom’s Stance on Homelessness
California Governor Gavin Newsom, who once threatened to withhold homeless funds from cities and counties, has pushed for greater accountability.
“This reaffirms the state’s prior findings that local governments need to do a better job of tracking homelessness spending,” Tara Gallegos, a spokesperson for Newsom, told KTLA. “That’s why Governor Newsom has implemented new, strict accountability measures to increase accountability and ensure every dollar is spent effectively.”
Conclusion
The audit’s findings highlight the need for greater oversight and accountability in Los Angeles’ homeless programs. It is crucial that the city takes immediate action to address these issues and ensure that taxpayer dollars are being used effectively to address homelessness.
FAQs
* What was the purpose of the audit?
The audit was conducted to assess the effectiveness of Los Angeles’ homeless programs and services.
* What were the main findings of the audit?
The audit found that there were significant gaps in documentation and incomplete data, which hindered the ability to track expenditures and assess the results of homeless spending.
* What were the recommendations of the audit?
The audit recommended that LAHSA improve its financial and performance oversight processes and provide more accurate recordkeeping to ensure accountability and transparency.
* What is the current state of homelessness in Los Angeles?
According to the latest point-in-time count, over 75,000 people are living on the streets of Los Angeles.
