iAUDIT! - If you have been following homelessness news for the past few months, you may wonder how the current system can possibly continue to operate. At least two news stories have described how LAHSA’s latest homelessness count was even more inaccurate than first believed. An “accounting error” may have missed people in shelters operated by faith-based providers (shelter occupants are considered “sheltered homeless”). An unknown but substantial number of people are living in makeshift RV camps in the high desert, largely ignored by LAHSA (and seemingly free to cause massive environmental damage while various local agencies bicker and dither). The bad news is not limited to the PIT count.
In what should be no surprise to anyone with even a passing familiarity with LAHSA’s history of financial mismanagement, LAist found the Authority’s senior managers approved millions in contracts with a nonprofit that its own accounting staff marked as high risk. The nonprofit’s CEO was later indicted for embezzling about $10 million to support his lavish lifestyle. As reporter Nick Gerda detailed in the LAist article, both former CEO Va Lecia Adams Kellum and former CFO Janine Trejo knew the nonprofit Abundant Blessings’ financial operations were highly questionable but failed to mention to risk to LAHSA’s commission when more than $2.6 million in contracts were presented for approval. This news came on top of LAHSA’s problems paying its providers on time and other financial problems. Perhaps one reason LAHSA can’t seem to get its financial house in order is that the former CFO, Janine Trejo, had almost no qualifications for the job. Before becoming CFO, she held mostly mid-level operational positions. According to LAist’s report, she did not meet the Authority’s requirements for the position, holding a degree in Cultural Anthropology instead of the required CPA and/or financial certifications. LAHSA is not alone in throwing money at Abundant Blessings. Gerda found that Mayor Bass’ office directed Inside Safe money to the nonprofit, even though its finances were already being questioned.
Indeed, the overall homelessness system seems to be coming apart. The most recent PIT count showed how current programs do little more than move people around. While Councilmembers Raman, Soto Martinez and Park claimed significant reductions in street homelessness in their districts, other districts saw two and three digit increases. Part of the reason, of course, is that the PIT count is little more than a guess and subject to any number of mistakes and questionable policies. The other reason is that citywide policy does not exist. Each Councilmember manages homelessness programs according to his or her own priorities. Unhoused people who find themselves pushed out of an encampment in one area need only move a few miles where the policies are more hospitable.
In summary, the current system is structurally resistant to change or reform. Councilmembers are loathe to delegate their authority to a citywide policy. The abnormally close relationships between nonprofit leaders and public officials have created a virtually guaranteed cashflow with almost no questions asked. For her part, Mayor Bass has shown herself to be particularly resistant to reform, opposing the County’s decision to withdraw its funding for LAHSA, and lashing out at critics of her signature Inside Safe program.
In fact, the Mayor consistently provides proof why its impossible for LA's homelessness programs to be reformed from within. See the latest from Nick Gerda at LAist about the demotion of LAHSA Commissioner Justin Szlasa from his position as chair of the Authority’s Audit Committee. Szlasa has been one of the few voices for accountability and reform on LAHSA's Commission, pushing for transparent financial management as audit committee chair. His reward was being largely ignored by LAHSA's executive leadership and stonewalled by other commissioners. Now he's been removed as chair. Nick Gerda gives his removal the coverage it deserves.
Szlasa’s removal is an exemplar of why LA's homelessness programs will never be reformed from within. Mayor Bass has resisted any attempt to bring accountability to city and LAHSA programs, and the County's Board, except for Supervisor Barger, have taken mostly performative action. Even when the BOS pulled its funding from LAHSA, it merely moved it to a new County program headed by a former LAHSA executive.
Szlasa's removal also shows how vindictive Bass can be to anyone who disagrees with her. Even her impending appearance before a Congressional committee will be little more than a political circus. The Mayor’s response to the request to appear is a classic example of deflection and a refusal to accept responsibility. She asked for the September 15 hearing to be postponed while the City gathers required documentation (something it is notoriously slow to do, even when demanded by a federal judge). Her response also noted she is just one of 10 LAHSA Commission members and should not be singled out to account for the Authority's performance. This position is especially ironic (or hypocritical) because Bass appointed herself to the Commission to bring accountability to the Authority and has always been quick to claim credit when the PIT counts showed minor reductions in homelessness. Apparently, her leadership skills are limited to only good news, and she believes she cannot be held accountable for failures.
Of course, Bass’ rival for mayor, Nithya Raman is no different in her zealous defense of the status quo. Her near cult-like devotion to failed Housing First policies has allowed encampments to spread throughout her district while the unhoused wait for housing that will never be built. She has consistently ignored pleas from constituents and business owners to reclaim the streets.
Leaders have developed such a tight interlocking system of defense that no one within the city, county, or LAHSA can force change, even if they want it. Individual elected or appointed officials may champion reform, but they are inevitably muzzled by overwhelming organizational inertia. Only change forced upon the system from the outside will lead to real change. Judge Carter has pushed for change but has held back from a court-ordered takeover. Where reform may come from and who will lead it remains ephemeral theoretical conjecture for now.
(Tim Campbell is a longtime Westchester resident and veteran public servant who spent his career managing a municipal performance audit program. Drawing on decades of experience in government accountability, he brings a results-driven approach to civic oversight. In his iAUDIT! column for CityWatchLA, Campbell emphasizes outcomes over bureaucratic process, offering readers clear-eyed analyses of how local programs perform—and where they fall short. His work advocates for greater transparency, efficiency, and effectiveness in Los Angeles government.)
