Following a review by the Health and Human Services Department and the City Auditor’s Office, the City identified contract compliance issues with the former operator and began withholding payments in November 2025 while reviewing the matter further. The City immediately took steps to ensure continuity of services for people staying in shelters by identifying a new operator capable of quickly assuming operations while also preparing for a full competitive procurement for long-term shelter operations later this year.
“The City takes contract compliance seriously and, when required, we go all the way, including terminating contracts,” said Mayor Rex Richardson. “I want to thank our Health Department, our City Attorney, our City Auditor and City Management for all working together to identify issues and taking quick action to ensure our providers are held accountable to the standards in our contracts.”
The City Council selected PATH on March 10, 2026, to operate the City’s shelters, and the transition was completed on March 31, 2026, without disruption. PATH brings extensive regional experience operating shelter systems and was recently selected as a lead service provider under the Los Angeles River Encampment Resolution Funding. In partnership with the City, PATH has already housed 60 people at the Colonial Motel within the past two weeks, reaching the site’s full capacity. As participants transition into permanent housing on a rolling basis, new beds will come available at the site…