News Summary

Los Angeles has announced a new Homelessness Fraud and Corruption Task Force to investigate potential misallocation of federal funds intended for homelessness services. Formed by U.S. Attorney Bill Essayli, the task force will scrutinize the dealings of local agencies like LAHSA amidst growing concerns about oversight and accountability. In a significant move, Los Angeles County is redirecting over $300 million in funding from LAHSA to a new department focused solely on homelessness. This initiative aims to restore public trust and improve the management of resources designated for addressing the homelessness crisis.

Los Angeles Unveils New Task Force to Combat Homelessness Fraud

Los Angeles, a city known for its vibrant culture and sunny skies, is now also in the spotlight for its struggles with homelessness. Recently, the newly appointed U.S. Attorney for the Los Angeles area, Bill Essayli, announced the formation of a Homelessness Fraud and Corruption Task Force. This initiative aims to tackle concerns over potential fraud and corruption linked to federal funds that are meant to help alleviate the homelessness crisis affecting the city and six surrounding counties.

Investigating Federal Funds and Local Agencies

Just a week after being sworn in, Essayli’s task force is set to investigate possible misallocation of federal tax dollars intended for homelessness services. There are serious concerns, particularly following recent audits that highlighted reckless spending and a shocking lack of transparency at the Los Angeles Homeless Services Authority (LAHSA). This agency plays a critical role, being responsible for distributing necessary funds for shelters and services to those experiencing homelessness.

Given that more than 75,000 people find themselves without shelter on any given night in Los Angeles County, it’s no wonder that local leaders feel an urgency to address these issues promptly. Notably, the state of California houses nearly one-third of the nation’s homeless population, which brings even more attention to the problematic oversight of homelessness funds.

A Shift in Funding: The County’s Bold Move

In a significant move, the Los Angeles County Board of Supervisors has voted to redirect over $300 million in annual taxpayer funds away from LAHSA to create a new department focused specifically on homelessness. This decision has led to the resignation of VA Lecia Adams Kellum, who was leading LAHSA when the announcement was made. The change aims to establish a more accountable framework for handling homelessness, one that aligns with the taxpayers’ expectations.

The LA City Council also feels the pressure. They have unanimously agreed to look into the possibility of withdrawing support from LAHSA, particularly after the county’s decision to stop funding the agency. With over $300 million being provided yearly, city officials are now questioning how the funds will be managed without LAHSA’s involvement.

The Task Force’s Broader Mission

The task force is not just focused on the inefficiencies noted within LAHSA but will also investigate fraudulent schemes involving the theft of private donations meant to support homeless services. This broader scope is crucial, as it aims to eliminate any wrongdoing that undermines efforts to help people in need effectively.

County Supervisor Kathryn Barger has voiced strong support for the task force, indicating that accountability in spending related to homelessness is long overdue. Furthermore, local officials have struggled to link the staggering amounts of money spent on homelessness to tangible outcomes, raising significant concerns about how effectively resources are being utilized.

Looking Ahead: Hope for Change

With more than $24 billion spent in California over the last five years to tackle homelessness, there has been a pressing need for better oversight and performance tracking. Federal Judge David O. Carter has also voiced dissatisfaction with LAHSA’s management of homeless services, echoing the sentiment of many residents who seek changes in how these funds are managed.

As part of the county’s plan to improve the situation, a centralized homelessness department is set to be established by January 1, 2024. However, city officials are concerned about how this transition will affect the coordination of services critical to the homeless population.

A Call for Transparency and Accountability

The overarching goal of the task force’s investigation is clear: to ensure that federal laws are upheld and that public trust is restored when it comes to how funds meant for alleviating homelessness are used. With multiple counties included in this investigation—including Orange, Riverside, San Bernardino, San Luis Obispo, Santa Barbara, and Ventura—this initiative could pave the way for lasting change and improved lives for countless individuals in need.

As this story continues to unfold, all eyes will be on Los Angeles to see how the task force’s findings impact the landscape of homeless services in the region and whether true accountability emerges from the shadows of past mismanagement.

Los Angeles Forms Task Force to Tackle Homelessness Fraud