Los Angeles (Thechieftainspear) – An independent audit has revealed severe shortcomings in the oversight and tracking of Los Angeles’ homelessness programs, raising concerns about how the city has managed billions in funding. The audit, mandated by a court order, was conducted by global consulting firm Alvarez & Marsal (A&M) and assessed four years of expenditures by the Los Angeles Homeless Services Authority (LAHSA) from June 2020 to June 2024.
The report uncovered major gaps in documentation and incomplete data, making it difficult to determine how approximately $2.3 billion allocated for homelessness initiatives was utilized. A&M emphasized that poor recordkeeping within LAHSA has hindered efforts to evaluate spending and program outcomes.
Among the key findings, the audit noted that independent contractors received city funds under ambiguous agreements with little oversight, leading to challenges in verifying whether services were actually provided. In one case, the auditors found discrepancies in the reported success rates of homeless individuals transitioning into permanent housing. During the 2023-24 fiscal year, only 22% of those leaving city programs successfully moved into stable housing, while nearly 48% returned to homelessness—a concerning statistic that exceeded the rate of those placed in permanent residences.
Further scrutiny revealed that LAHSA frequently approved contractor payments before confirming the completion of services, adding to concerns about financial mismanagement.
Councilwoman Monica Rodriguez was particularly critical of the audit’s findings, calling LAHSA a “modern-day Titanic” and reiterating long-standing concerns about the agency’s inefficiency. She criticized her colleagues for continuing to funnel taxpayer money into a system that has repeatedly failed to deliver meaningful results.
In response to the audit, LAHSA acknowledged the challenges posed by a “siloed and fragmented” approach to addressing homelessness in the region. The assessment was commissioned by U.S. District Judge David O. Carter as part of a lawsuit filed in 2020 by the L.A. Alliance for Human Rights. The lawsuit, brought by local business owners and concerned residents, accused city officials of failing to address homelessness in a way that ensured public health and safety. While a settlement was reached in 2022, critics argue that the city has not met its obligations to provide sufficient housing and resources.
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Since taking office in 2022, Mayor Karen Bass has prioritized homelessness through her Inside Safe initiative, which aims to lower costs associated with temporary and permanent housing while expanding services for those in need. According to the program’s website, nearly 3,900 homeless individuals have been moved indoors under her leadership, with 878 securing permanent housing. The latest point-in-time count showed a slight decrease in homelessness within city limits, dropping from 46,260 individuals in 2023 to 45,252 in 2024. However, countywide numbers have remained relatively stable, with approximately 75,000 people still experiencing homelessness.
Mayor Bass pointed to the audit as validation of her administration’s efforts to reform a failing system. She highlighted that recent policy changes contributed to a 10% decline in the city’s homeless population—the first decrease in years—while acknowledging that significant work remains.
Governor Gavin Newsom, who has previously threatened to withhold homelessness funding from local governments over accountability concerns, echoed similar sentiments. His administration has implemented stricter oversight measures to ensure transparency and effectiveness in homelessness spending. Tara Gallegos, a spokesperson for Newsom, emphasized that cities and counties must do more to track the impact of their programs, directing the public to accountability.ca.gov for further details on state funding and expenditures related to homelessness and affordable housing.
As scrutiny intensifies, Los Angeles faces mounting pressure to reform its approach to homelessness, ensuring that billions in taxpayer dollars lead to measurable improvements rather than disappearing into bureaucratic inefficiency.
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