HOMELESSNESS – Los Angeles is in the midst of a defining moment for public accountability. As the region continues investing billions into homelessness programs, an unexpected dispute over audit authority has placed one of the city’s most urgent responsibilities—oversight—on hold. The result is a system caught between bureaucratic interpretations and public expectations, and the consequences extend far beyond City Hall.
At the center of the issue is a legal disagreement between the City Attorney and the City Controller regarding who has the authority to audit homelessness spending. This debate was formalized in Opinion No. R24-0094, in which the City Attorney concluded that large portions of homelessness-related expenditures should be treated as “proprietary,” limiting the Controller’s audit authority. While the Controller sought to examine contracts, service providers, and major programs—including those involving LAHSA, Inside Safe, and Proposition HHH—this interpretation effectively paused or restricted his review.
Because the Controller’s office had begun looking more closely at how the city’s homelessness system operates—an ecosystem of contractors, nonprofits, developers, consultants, intermediaries, and public agencies that together manage billions in funding but often struggle to show consistent, verifiable results. Inside Safe has now exceeded $250 million in spending, yet independently validated rehousing data remains limited. LAHSA oversees more than $800 million annually without a comprehensive, audited performance-tracking system. Proposition HHH projects regularly approach or exceed $700,000 per unit. Some service providers with prior compliance issues continue to receive contract renewals, and affordable housing developers operate within cost structures that escalate year after year. Stronger oversight would have touched every part of this system…