Los Angeles’ Homelessness Crisis: Audit Findings and the Future of Services
Los Angeles officials are facing renewed pressure to restructure how homelessness services are delivered following a scathing audit that raised serious concerns about the efficiency and accountability of current efforts. At the center of this debate is the Los Angeles Homeless Services Authority (LAHSA), a joint city-county agency that has been responsible for managing homelessness programs for the past three decades.
The recent court-ordered audit revealed alarming gaps in LAHSA’s ability to track and report how funding is spent. The report highlighted a lack of data transparency, raising questions about whether billions of dollars allocated for homelessness services have been effective in reducing the crisis. The audit found that despite significant investments, many unhoused individuals are not receiving the support they need, and there is no clear system for measuring success.
The homelessness crisis in Los Angeles continues to escalate. As of 2024, an estimated 45,000 people are experiencing homelessness in the city, with more than 70,000 countywide—an increase from approximately 66,000 in 2020. Latino individuals represent a significant and growing portion of this population, often facing unique challenges such as language barriers, immigration status concerns, and lack of culturally competent resources.
Many Latino unhoused individuals struggle with accessing services due to systemic inequities, and a significant portion of Latino families are on the brink of homelessness due to economic instability, skyrocketing rents, and lack of affordable housing.
Despite the increasing number of unhoused individuals, funding for homeless services has expanded dramatically over the past decade. Various agencies receive funding to address the crisis, including:
- LAHSA: Receives funding from multiple sources, including $350 million from LA County, $307 million from the city of Los Angeles, $145 million from the state, $73 million from the federal government, and $2.5 million from private donors.
- City of Los Angeles: Budgets around $1 billion for homelessness initiatives but has been criticized for spending less than half of its allocated funds in the last fiscal year.
- County of Los Angeles: Funds additional services, including mental health programs and emergency housing efforts.
- Local Agencies: Cities like Pasadena, Glendale, and Long Beach operate their own independent homeless services departments.
- Nonprofits and Private Organizations: Various charities and community-based organizations work alongside government agencies to provide direct services.
In response to the audit, city and county officials are considering drastic changes:
- Supervisor Lindsey Horvath’s Proposal: Calls for creating a new county department to handle homelessness services, potentially stripping LAHSA of its funding and responsibilities. This new department would be staffed and operational by July 2026.
- Councilmember Nithya Raman’s Proposal: Focuses on establishing a homeless services oversight bureau within the city’s housing department to ensure greater accountability without dismantling LAHSA.
Some officials, including Councilmember Monica Rodriguez, have pushed for an immediate withdrawal of city funding from LAHSA, calling it a “modern-day Titanic.”
The Potential Impact of a Government Takeover
If LAHSA is dismantled, the restructuring could lead to both improvements and setbacks:
- Potential Benefits:
- More direct oversight of funding and program efficiency.
- Greater accountability and data transparency.
- Programs tailored to meet the specific needs of the Latino unhoused community.
- Potential Drawbacks:
- Risk of bureaucratic delays in setting up a new system.
- Service disruptions for thousands of unhoused individuals.
- Uncertainty about whether new government-led initiatives will be more effective.
The Board of Supervisors will discuss Horvath’s proposal on April 1, while the LA City Council will consider Raman’s oversight bureau proposal. With multiple stakeholders involved, the future of homelessness services in Los Angeles remains uncertain.
For unhoused individuals, including the Latino community, the outcome of these decisions could mean the difference between continued struggles and the possibility of real, systemic change.
One city did it: ‘Functional Zero Street Homelessness’
