On November 19th, the results of an audit of the Los Angeles Homeless Services Authority (LAHSA), requested by Los Angeles County Supervisor Lindsey Horvath in February, were publicly released. The audit found various issues, including lax accounting procedures, failing to reclaim millions of dollars in cash advances to contractors, and paying other contractors on time.
In response, Supervisor Horvath is forwarding a motion to create a new county department to consolidate homelessness contracting within the county. LA. City Councilmember Monica Rodriguez, who sits on the council’s Housing and Homelessness Committee, has since cut ties with the agency.
Audit Reveals Accounting Deficiencies at the LA Homeless Authority
The Los Angeles Times reported that the February-issued audit found that the LAHSA needed to establish clear policies on how and when advances to contractors should be paid. Auditor-Controller Oscar.
In the 57-paid audit, the agency must consistently maintain records for capital advances and provide an accurate list of all contracts and their execution dates.
Additionally, the audit found that the LAHSA had recovered only $2.5 million of the $50.8 million in Measure H funds advanced in the 2017-18 fiscal year.
As of July, the agency had $8 million outstanding from advances from county, city, and state programs made from 2016 to 2023.
Horvath Calls for a New County-Run Department
According to an article by The Los Angeles Times, on November 19th, Los Angeles County Supervisor Lindsey Horvath reacted to the audit results by calling for a new county department. Currently, the LAHSA is a city-county joint powers agency. Horvath’s proposed department would consolidate homelessness contracting with the county.
“The audit findings underscore the urgent need for greater accountability in our homeless services system,” Horvath said. “LAHSA plays an important role, but the current structure is not meeting the scale of this crisis.”
Rodriguez Introduces New Motion, Cuts Ties to LAHSA. As LAist reported, LA City Councilmember Monica Rodriguez introduced a motion on November 22nd to direct city staff to investigate ways the city could directly contract with service providers and bypass the LAHSA.
Councilmember Rodriguez currently sits on the council’s Housing and Homelessness Committee. This new motion signifies her apparent intention to cut ties with the LAHSA following the release of the problematic audit.
Rodriguez cited the audit’s findings in a statement, criticizing the practice of providing public funds without contracts and established metrics. “Now is the time for a centralized, transparent system that maximizes taxpayer dollars, saves lives, and addresses homelessness with the focus it deserves,” Rodriguez stated.
Greater LA Homelessness Shows Decline in 2024
Although the audit for the LAHSA revealed apparent mishandling of funds, reports of homelessness in the greater LA area have shown a decline in homeless populations for 2024.
According to Fox 11, the 2024 Greater Los Angeles Homeless Count measured a slight decrease in homelessness after six years of steady increases. The LAHSA reported in June a .27% decline in overall homelessness countywide and a reduction in unsheltered homelessness of 5.1% in the county and 12.7% in the city of LA.
Paul Rubenstein, LAHSA deputy chief of external relations, made statements regarding the report, attributing the downward trend to “unprecedented policy alignment and investments.”
As this optimistic report was released before the public release of the February audit, the impact of the audit and possible reorganization of LA homelessness response on unhoused populations remains to be seen. According to the report, these populations include 75,312 unhoused people in the county and 45,252 unhoused in LA.
