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Officials in Los Angeles moved Tuesday to control hundreds of millions of dollars in homeless spending. This cites two harsh audits that found that government agencies are currently responsible for their money and spending it without transparency.
This month’s audit showed insufficient record keeping, preventing Los Angeles Department of Homeless Services (Lahasa tracking spending and verifying whether paid services were offered. Authorities also lacked a proper system to pay bills late and monitor contracts, failing to provide documents to consider the $5 million cash advance sent to five service providers, according to a November report.
On Tuesday, LA City Council unanimously approved a motion asking staff to prepare a report on how Los Angeles effectively circumvents authority and can sign directly with homeless service providers.
The city-county jointly funded agency was established in 1993 as a result of a litigation settlement addressing limited access to public funds. It coordinates and manages money spent on shelters, food programs and a wide range of services for non-resident residents. The annual budget is approximately $875 million.
The homeless crisis can be seen in downtown Los Angeles. In downtown Los Angeles, hundreds of people live in makeshift sheds lined up with an infamous block known as Skid Row. Tents regularly appear on the pavement outside the city hall. Camps are increasingly seen in suburban areas under highway overpasses. A 2024 survey found that over 75,000 people were homeless on every night across LA County.
California accounts for almost a third of the US homeless population.
Los Angeles Mayor Karen Bass made homelessness a major priority but did not immediately comment on Tuesday’s vote. Va Lecia Adams Kellum of Bass Ally has been CEO of Lahsa since 2023.
Councilman Monica Rodriguez, who introduced the measure, said the city should cut ties with the agency years ago.
“It’s currently confirmed in two audits and it’s not possible to create an account for the funded work, and that’s a terrible violation of the taxpayer trust for me,” Rodriguez told The Associated Press on Monday.
Rodriguez also wants to create an urban department that will be responsible for the council and mayor.
Officials did not address the criticism in a post-voting statement, but noted that the county’s unsheltered homeless population has declined over the past two years.
“To maintain this momentum, all partners in this effort must work to continue integrity and improvement,” the statement said.
Meanwhile, the Los Angeles County Board of Supervisors will vote on a proposal on April 1 to shift nearly $350 million to an annual taxpayer fund that will go to Lahasa to establish a new county division on homelessness.
“As recent audits highlight the urgent need for reform and stronger accountability, it is time to implement long-term, expiring changes,” superintendent Lindsay Horvath said in a statement.
Under the motion before the supervisor, authorities will continue to receive support from the county for the limited number of programs and services the federal government needs, including the annual homeless earlions.
This month, Rasa released preliminary results from an annual tally of annual impervious residents in January, when she expected a 5% to 10% reduction in unsheltered homelessness in the area.
“When I first came to Rahasa, I publicly stated that I wanted to reduce unsheld homelessness within three years,” Adams Kellam said in a statement accompanied by early numbers. “We did that in two.”
The final result of the 2025 count is expected to be released in May or June. The agency said the preliminary figures indicate that LA County is moving in the right direction towards solving the homelessness.
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