THE BOTTOM LINE – Los Angeles is now facing a scandal so massive it can no longer be dismissed, excused, or spun. One of the city’s largest homeless service providers received over $100 million in taxpayer funds while violating mandatory federal audit laws, and the very institutions responsible for oversight — the Mayor’s Office, City Administrative Officer, City Council leadership, LAHSA’s executive team, and the County Chief Executive Office — kept the money flowing and stayed silent. This is not a paperwork problem. This is a system-wide governance failure.
For years, Angelenos have been told to trust the “coordinated” homelessness response between the City and County. But this scandal exposes the truth: the system is not coordinated — it is collusive. It protects its own insiders, its own contractors, and its own political interests, while the public is denied transparency and accountability.
The LAist investigation confirms what thousands of residents have suspected for years: L.A.’s homelessness bureaucracy has become a multi-agency shield, not a solution.
- The Mayor’s Office pushed unprecedented homeless spending without demanding audit compliance.
- The City Council’s leadership committees approved contracts without ensuring federal requirements were met.
- The City Administrative Officer signed off on funding despite red flags.
- The LAHSA Commission and executive leadership failed to enforce the law.
- The County CEO’s Office allowed the same provider to continue receiving funds.
Every layer of oversight failed. Every single one.…