☕️Good morning.
Grab your coffee and sit with me for a minute.
HUD just cut off LAHSA after they burned through nearly a billion dollars.
Mayor Bass did something no LA mayor has ever done.
She appointed herself to the LAHSA board, then put her close ally in a four hundred thirty thousand dollar a year job running it.
Suddenly the same agency she controls starts saying homelessness is going down right in the middle of her reelection campaign.
But a RAND study just proved they were lying. They undercounted people on the streets by thirty two percent.
When Spencer Pratt started exposing the truth, they flipped the election results on him and smeared him on national TV.
This isn’t incompetence.
This is a machine protecting itself.
Are you seeing what I’m seeing?👇🏼
There are multiple nonprofits and service providers getting big chunks of this money. In LA alone, LAHSA contracts with over a hundred nonprofit partner agencies that handle shelter, housing, and services.
Across California, funding flows through nine state agencies and more than thirty different programs, plus local governments and private donations.
The problem is real and documented. Audits have flagged billing for empty beds and unverified housing sites, poor tracking of where the money actually goes, and cases where providers got paid while people stayed on the street.
There’s a federal Homelessness Fraud and Corruption Task Force looking into this right now, and HUD just suspended funding to LAHSA over mismanagement and fraud concerns.
A handful of these groups have faced specific investigations for things like fake invoices, data manipulation, or misusing funds for personal gain, but so many organizations are crooked, the bigger contributing issue is weak oversight across the whole system, so the money doesn’t always reach the people it’s meant for.
It’s frustrating as hell when the numbers on the street don’t match the billions spent.
LAHSA, the Los Angeles Homeless Services Authority, is the main group under active federal investigation right now. HUD just suspended their federal funding this week over a clear pattern of fraud and mismanagement.
They’re looking at nearly one billion dollars the agency received since twenty twenty-one. Specific issues include paying for empty hotel rooms without proper records, failing to document nearly twenty-three hundred housing sites, misusing over two million dollars in a conflict of interest case involving the former CEO’s husband, and repeatedly making false statements about their financial controls.
There’s also a broader federal Homelessness Fraud and Corruption Task Force investigating multiple nonprofits and providers across Southern California for waste, fake billing, and outright theft of homeless funds. A few specific nonprofits like the Weingart Center have faced separate scrutiny over property deals and audit failures.
Exact total misused isn’t nailed down publicly yet, but audits keep showing hundreds of millions untracked or improperly spent while people stay on the streets.
It’s almost as if California wants to keep the homeless communities under their control and living on the streets dependent on them.