Los Angeles moves to take control of homelessness agency, citing audits that found reckless spending
Story by CHRISTOPHER WEBER • 11h
LOS ANGELES (AP) — Los Angeles officials moved Tuesday to take control of hundreds of millions of dollars in homelessness spending, citing two scathing audits that found the government agency currently responsible for that money has spent it recklessly and without transparency.
An audit this month found poor record-keeping prevented the Los Angeles Homeless Services Authority, or LAHSA, from tracking spending and verifying whether paid-for services were provided. The authority also paid invoices late, lacked an adequate system to monitor contracts and could not provide documentation to account for $5 million in cash advances sent to five service providers, according to a report in November.
On Tuesday the LA City Council unanimously approved a motion asking staff to produce a report on how Los Angeles could effectively sidestep the authority and directly contract with homeless service providers.
The agency, which is jointly funded by the city and county, was formed in 1993 as a result of a lawsuit settlement addressing limited access to public funds. It coordinates and manages money that goes toward shelter, food programs and a wide range of services for unhoused residents. It has an annual budget of approximately $875 million.
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