A federal court hearing is expected Friday in efforts to have an independent auditor scrutinize homelessness-related expenditures by the city of Los Angeles.
While U.S. District Judge David Carter is close to signing off on the court-monitored, third-party audit, the scope of the probe and the names of potential auditors must first be discussed.
At a hearing Monday, L.A. Mayor Karen Bass and the head of the Los Angeles Homeless Services Authority — LAHSA — committed to providing increased transparency about money spent on homeless services. Both agreed to publicly post detailed invoices from service providers, a first for the city, the judge said.
The hearings are part of a lawsuit brought by the L.A. Alliance for Human Rights, a group of downtown business owners who accuse the city of failing to meet the terms of its 2022 settlement agreement to clear homeless encampments and create more shelter beds. The county settled with the plaintiffs last year.
Carter recently said that the plaintiffs were apparently “misled” by the city, but declined to immediately rule on a request by the L.A. Alliance to have the city pay a nearly $6.4 million fine for allegedly missing deadlines detailed in the settlement.
While the proposed fine is still on the table, the latest hearings in Los Angeles federal court have focused on efforts to determine exactly where the dollars budgeted for homeless services have been going.
The judge reminded the parties Monday that three years ago it was found that there had apparently been “absolutely no accounting and no transparency” for at least $600 million that had flowed through the city to combat homelessness in years before Bass was elected mayor in 2022.
Quoting from former California State Auditor Elaine Howle’s February 2021 report on homelessness in California, Carter said, “The state continues to lack a comprehensive understanding of its spending to address homelessness, the specific services the programs provide, or the individuals who receive those services.”
The proposed audit would look at three specific areas, the judge said, referring to Bass’ Inside Safe program, designed to move unhoused residents from street encampments indoors, and two other agreements.
Carter approved the city and county’s settlements with the L.A. Alliance on the condition that he closely monitor their progress in meeting deadlines and goals. An April 4 hearing is set to discuss the county’s efforts to meet its settlement goals.