- A recent audit of the Los Angeles Homeless Services Authority (LAHSA) found that the city cannot track spending on homelessness programs and failed to reconcile funds with services provided, hindering evaluation of program effectiveness.
- California has spent $37 billion on homelessness since 2019. However, a state report reveals an undercounting of homeless individuals, with 34% of them coming from outside the state.
- State auditors recommend that California delay the next round of homelessness funding until agencies can prove their programs are effective. Agencies must submit reports by April 1, 2026.
Full Story
California officials are using audits to address concerns over the management of homelessness funding. Recent findings show mismanaged funds, a lack of accountability and individuals from outside the state using services.
What have recent audits revealed?
An audit released Thursday, March 6, of the Los Angeles Homeless Services Authority (LAHSA) revealed the city is unable to track how much it has spent on homelessness programs. The audit also found that the city failed to reconcile spending with services provided, making it impossible to evaluate the effectiveness or delivery of those services.
In response to the report, a member of the LA County Board of Supervisors, Lindsey Horvath, posted on X, saying, “I’m introducing a motion to create a consolidated County Department to end this nightmare. It’s another reminder of what we already know: the current system is broken.”
This marks the second critical report on LAHSA in recent months. A November 2024 report revealed failures to track millions of dollars in cash advances to contractors and delays in paying service providers, even when funds were available.
A statewide issue?
The issue is not limited to Los Angeles. A report by the California Legislative Analyst’s Office, also released during the week of March 2, shows that the state has spent $37 billion on homelessness since 2019. However, the report also indicated that the state is underreporting the number of homeless individuals.
In response, the governor’s office told FOX 26, “This is simply not true. The audit did not report that the state has failed to track funding. The state distributed funding to local governments to address homelessness through numerous state programs — all the money is accounted for. We know exactly where state funding has gone — to local governments who are building programs, shelter and housing.”
Additionally, a 2023 study found that 34% of homeless individuals in California are from out of state.
Recommendations to hold funds
Based on these findings, state auditors recommend withholding the next round of grant funding until proof of program effectiveness is provided. Agencies receiving funding in this cycle have until April 1, 2026, to submit their reports.
