A federal judge is considering whether to appoint a receiver to take control of Los Angeles city’s homelessness programs. Over a two-week hearing, more than 2,000 objections were raised, highlighting the contentious nature of the case. U.S. District Judge David O. Carter is set to rule on a petition filed by business owners, property owners, and residents requesting oversight of the city’s $1 billion annual spending on homelessness.
The city has been accused of breaching settlements from 2020 and 2022, which required the provision of nearly 20,000 new housing solutions and the removal of almost 10,000 encampments. Matthew Umhofer, attorney for the LA Alliance for Human Rights, argued that the system is broken and needs judicial intervention. However, Theane Evangelis, representing the city, dismissed these claims, arguing that the alliance has not provided evidence that the city won’t meet its targets.
The hearing included testimony from Emily Vaughn Henry, a former chief information officer at the Los Angeles Homeless Services Authority (LAHSA), who described the data system as “smoke and mirrors.” Laura Frost from Alvarez & Marsal testified that requested data was often missing, leading to assumptions that it did not exist. The audit revealed disjointed programs and inadequate data systems, raising concerns of waste and fraud, although no specific fraud was identified.
The case has sparked a debate over the city’s approach to homelessness, with some arguing that removing tents does not solve the problem. Judge Carter has given Mayor Karen Bass until May to address the issues, warning of severe consequences if the system remains unfixed. The city maintains it will meet its obligations to provide additional homeless beds by June 2027, as outlined in the 2022 agreement.
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