Los Angeles Mayor Karen Bass’ first action after taking office in 2022 was an overarching emergency declaration to tackle the city’s homelessness problems. At the time, city leaders backed her move, but now some are looking to scale back and revisit the root cause of the issue.
What does the emergency declaration do for LA?
Bass’ emergency order gave her immediate authority to bypass certain rules and regulations, accelerating the process of building both temporary and permanent housing for people experiencing homelessness.
According to the city charter and administrative code, it grants Bass the authority to take action when a crisis exceeds the capacity of normal city operations. The declaration pointed to worsening conditions across Los Angeles. At the time, nearly 42,000 people in the city experienced homelessness, contributing to a countywide total that exceeded 75,000. Officials highlighted rising death rates, racial disparities, mental health needs and a severe shortage of shelter beds.
Officials issued the emergency order to fast-track housing, ease regulatory barriers, and coordinate efforts across city, county, and state agencies. Leaders urged the City Council to adopt measures that would accelerate contracting and resource deployment. While the city had already invested $1.2 billion in homelessness solutions, Bass called the emergency declaration necessary to save lives and address the crisis on a larger scale.
How do people feel more than two years later?
Council member Tim McOsker is backing a move to end Los Angeles’ emergency declaration on homelessness and return to standard procedures. If the city reverts to policies outlined in the city charter, decisions regarding homelessness, including new housing projects, would shift back to the full City Council.
“Let’s come back to why these processes exist,” McOsker said in an interview with the Los Angeles Times. “They exist so the public can be made aware of what we’re doing with public dollars.”
McOsker isn’t suggesting the city stop addressing the problem, but wants to make more permanent changes through its agencies.
Fraud discovered in funds involving homelessness
U.S. Attorney Bill Essayli has launched a Homelessness Fraud and Corruption Task Force to investigate alleged fraud, waste and abuse involving funds allocated to combat homelessness in Southern California. The new unit, established through the Department of Justice, includes federal prosecutors from major fraud, public corruption, and civil divisions.
“California has spent more than $24 billion over the past five years to address homelessness,” Essayli said. “But officials have been unable to account for all the expenditures and outcomes, and the homeless crisis has only gotten worse.”
The DOJ announced the task force on April 8, citing the $100 million in federal COVID-19 aid given to Los Angeles County to address homelessness. In February, the city of Los Angeles received more than $200 million in additional funding from the U.S. Department of Housing and Urban Development.
The Los Angeles Continuum of Care (LA CoC), through the Los Angeles Homeless Services Authority, oversees the funding. In April, the Los Angeles County Board of Supervisors decided to dissolve the agency by pulling more than $300 million in funding. Days later, the agency’s CEO resigned from her position.
CEO Va Lecia Adams Kellum allegedly signed contracts with a nonprofit agency that currently employs her husband. AHSA’s policy prohibits conflicts of interest.
Lawsuit against LA over homelessness funding
A court-ordered audit revealed widespread issues in Los Angeles’ tracking and management of billions of dollars in spending related to homelessness. The report cited poor data, limited oversight and unclear contracts that hinder transparency and accountability.
The assessment, conducted by consulting firm Alvarez & Marsal, flagged serious gaps in financial documentation that made it difficult to track how $2.3 billion allocated for city homelessness programs was spent. The city’s Homeless Budget totaled $3.6 billion between fiscal years 2020-2021 and 2023-2024, but actual spending was not routinely reconciled with budget allocations.
The report stems from a legal battle with the L.A. Alliance for Human Rights. The alliance wants the court to appoint a third party to take over LAHSA’s finances and assets due to the discrepancies.
According to the LAHSA, they reported a 2.2% dip in homelessness across LA. Data from summer 2024 showed a drop in street homelessness, but also a 10% decline in the use of interim housing.