City officials in Los Angeles are struggling to track spending aimed at addressing homelessness. A recent audit, ordered by a federal judge, reveals that the Los Angeles Homeless Services Authority (LAHSA) has not been collecting the necessary data, which raises concerns about accounting for $2.4 billion in city funding.
According to the findings, LAHSA has outsourced many tasks for managing homelessness funds but failed to ensure that the funds are being used effectively. Auditors described the paperwork provided by the agency as so inadequate that tracking expenses became nearly impossible. They noted, “financial accountability was insufficient,” making it tough to trace funds allocated for city programs.
One significant issue highlighted in the audit is the organization’s inability to verify services provided. In one instance, LAHSA could not confirm the existence of around 2,300 housing sites it was supposed to oversee. Alarmingly, 70% of contracts related to those sites did not report any expenses from the previous year.
The implications of this audit are serious. County Supervisor Lindsey Horvath referred to the findings as a “nightmare” and announced plans to reconsider the county’s financial relationship with LAHSA. “We cannot accept this dysfunction any longer,” she stated.
Elizabeth Mitchell, an attorney with the L.A. Alliance for Human Rights, emphasized the severe consequences of such financial mismanagement. She pointed out that failing to properly oversee these funds contributes to ongoing suffering on the streets, affecting both those who have homes and those who do not. She concluded that this is not merely about poor management; it represents a moral failure.
Los Angeles is expected to allocate around $306 million of taxpayer money to LAHSA this fiscal year. However, no comment has been made yet by LAHSA Chief Executive Va Lecia Adams Kellum, currently leading the organization. She was at the helm during the audit period, which spanned from mid-2020 to mid-2024.
In response to the audit, a LAHSA spokesperson suggested that the problems stem from a disconnected approach to the region’s homeless services. However, they did not address the auditors’ concerns about vendor oversight. Mayor Karen Bass acknowledged that the report underscored the need for reform, stating that it confirms long-standing issues within the system. “We are committed to working together to improve this broken system,” she said.
Several council members reacted strongly to the audit’s findings. Councilmember Monica Rodriguez noted that these results align with her concerns about how funds for homelessness have been managed over the years. She called for an urgent shift in how funds are allocated, emphasizing that better tracking needs to be established.
Meanwhile, Councilmember Nithya Raman has been advocating for more centralized oversight and data collection regarding homelessness spending. She expressed frustration over the lack of accountability for service providers, highlighting that the city is not properly equipped to understand how funds are being utilized.
Councilmember Bob Blumenfield echoed those sentiments, stating that the report illustrates the challenges of opaque funding processes. He emphasized that fragmentation in the system only complicates the city’s efforts to follow the money trail and effectively support homelessness initiatives.
As discussions about LAHSA’s future continue, Bass has expressed caution about entirely severing ties with the authority. She believes the focus should remain on providing services rather than creating new complex bureaucracies.
The audit was initiated by Judge Carter after realizing that L.A.’s city controller was blocked from conducting an audit of a significant mayoral program targeting homelessness, known as Inside Safe. At a previous hearing, he described the situation as “ridiculous” and noted that this may be the first independent review of homelessness spending in decades.
This audit process is ongoing, and a public hearing is expected, where stakeholders will discuss its implications further. There are also calls for accountability regarding the commitments made to add shelter beds as part of a 2022 settlement.
With LA facing financial challenges and rising costs, efficiency in spending is critical. Moving forward, city and county leaders must work together, focusing on true accountability and better results for those affected by homelessness.
Check out this related article: Remembering Gene Hackman and Betsy Arakawa: A Tribute to Their Lives and Legacy After Passing from Natural Causes
Source linkLA, homeless, LAHSA, audit, spending
