Audit Report & L.A. Homeless Spending Equally Convoluted

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Headlines cite a $218 million waste of bed usage, 1:5 unused, under the guidance of Los Angeles officials, but an audit report reveals & unravels the premise of headlines.

 Los Angeles City Controller Kenneth Mejia's audit of the city's programs for the homeless initially suggests one in five city-funded beds in shelters were not used between 2019 and 2023.   While $1.24B is earmarked for homeless services, the conclusion is it "cost" the city $218M.

 "Until a person is permanently housed, that person’s homelessness is not successfully ended. That is the guiding principle for the City and nation’s homelessness strategy."

The conclusion by Mejia, in his public statement:

  • avoids explaining the reason why beds are not utilized 
  • suggests a homeless, unsheltered person is now hindered from going forward
  • does not detail how the cost of $218M was contrived, accessed, calculated
  • does not explain how to educate, convince, communicate the availability of beds
  • does not compare faith-based programs with the city in
    • the financial efficiency, 
    • shelter usage
    • recidivation
    • turn-around rates
    • path to permanent housing

However, justification within an explanation for not meeting targets is equally vague:

 Severe data quality issues - The lack of reliable information makes meaningful evaluation of
system performance difficult, impedes LAHSA’s ability to hold underperforming service providers accountable, and prevents the City from making informed decisions about where to direct future spending.

"Any bed that goes unfilled means an unsheltered person living on the streets is waiting longer than they need to move into a safer space and begin their path to permanent housing.''

Even more disheartening is an additional conclusion:

LAHSA’s program management and monitoring are vastly inadequate - The agency does not have a formal process in place to regularly review the performance of providers, including occupancy/placement rates, and hold underperforming service providers accountable by requiring significant corrective action.

Did the lawsuit by LA Alliance for Human Rights abet or open the door for the irresponsibility of the Los Angeles Homeless Services Authority?  That lawsuit resulted in a settlement requiring (by way of commitment in budget allocations) $1.24 billion in additional funding for beds for those with mental health and substance abuse issues.  

Then on page 3, of the 86 page audit report, the "1 in5" statistic is repeated, but for a different reason.  

"Low permanent housing placement rates: Fewer than one in five people enrolled in City-funded shelters have been able to secure some sort of permanent housing. Between FY 2019 and FY 2023, City shelters served 93,741 people and only 15,818 people (17%) secured permanent
housing. On average, approximately 3,200 people per year were placed into permanent housing
during the scope period."

 And then on page 4 the report unravels the premise of 1 in 5 unhoused:

Factors for successful outcomes: Successful housing outcomes are less impacted by interim
housing type, and more impacted by effective service delivery and other factors that help
people become stable.
Examples: consistent/communicative case management, housing
navigation, access to mental health services, job training.

Perhaps another lawsuit would redirect the $1.24B to faith-based organizations with 75+ years of experience, and even business motivated charities in Los Angeles.

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