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SoCal's use of homeless funds under investigation
A federal task force is investigating how Southern California is using money dedicated to battling homelessness after an audit in Los Angeles found more than $2 billion unaccounted for.
LOS ANGELES - Federal officials on Tuesday announced the creation of the Homelessness Fraud and Corruption Task Force, aimed at investigating fraud, waste, abuse, and corruption in funds allocated to combat homelessness in the Central District of California.
The task force will include federal prosecutors from the Major Frauds Section, the Public Corruption and Civil Rights Section, and the Civil Division’s Civil Fraud Section of the U.S. Attorney’s Office for the Central District of California. It will be supported by the FBI, the U.S. Department of Housing and Urban Development Office of Inspector General (HUD-OIG), and IRS Criminal Investigation.
Homelessness remains a crisis across Southern California
What we know:
The Central District of California encompasses approximately 20 million residents across Los Angeles, Orange, Riverside, San Bernardino, San Luis Obispo, Santa Barbara, and Ventura counties. Los Angeles County alone has a homeless population exceeding 75,000, with more than 45,000 within the city limits of Los Angeles. The remaining six counties have a combined homeless population of over 20,000.
Despite significant financial efforts, including voter-approved initiatives and billions of dollars spent, homelessness remains a crisis, particularly in Los Angeles County. A recent court-ordered audit criticized the homelessness services in Los Angeles for being "disjointed" and lacking financial controls.
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LA County creates new homeless agency
Under the plan approved Tuesday on a 4-0 vote, with Supervisor Holly Mitchell abstaining, the new county agency is expected to be in place by Jan. 1, with all funding pulled from the Los Angeles Homeless Services Authority and transferred to the new county department by July 1, 2026.
During the COVID-19 pandemic, the federal government allocated $100 million in emergency aid to Los Angeles County for homelessness. Last month, HUD awarded over $200 million to address the issue in Los Angeles.
The task force will focus on investigating crimes related to the misappropriation of federal tax dollars intended to alleviate homelessness. It will prioritize reviewing federal, state, and local programs receiving federal grants and funding, as well as fraud schemes involving the theft of private donations meant for homeless support.
SUGGESTED:
- LA homeless services CEO resigns days after County votes to effectively defund agency
- LA City Council limits money going to Bass' Inside Safe program
- LA County defunds LA Homeless Services Authority, creates its own department
- Luxury high-rise homeless shelter with $600,000 units opens in downtown LA
DOJ: ‘If state and local officials cannot provide proper oversight and accountability, we will do it for them’
What they're saying:
"California has spent more than $24 billion over the past five years to address homelessness," U.S. Attorney Bill Essayli said. "But officials have been unable to account for all the expenditures and outcomes, and the homeless crisis has only gotten worse. Taxpayers deserve answers for where and how their hard-earned money has been spent. If state and local officials cannot provide proper oversight and accountability, we will do it for them. If we discover any federal laws were violated, we will make arrests."
"Any exploitation of the homelessness crisis via the theft of funds intended to improve conditions cannot and will not be tolerated," said Akil Davis, Assistant Director in Charge of the FBI’s Los Angeles Field Office. "The FBI is proud to join the newly formed task force and will continue to investigate fraudulent schemes and corrupt officials who misappropriate government funding or private donations intended to aid those in need."
Special Agent in Charge Robert Lawler with HUD-OIG emphasized the collaboration's commitment to protecting vulnerable communities and ensuring accountability. "This collaboration reflects our shared commitment to protecting vulnerable communities, ensuring accountability, and promoting integrity in programs intended to serve those most in need," Lawler said.
"IRS Criminal Investigation is uniquely poised to track any funds granted through various federal programs," said Special Agent in Charge Tyler Hatcher of IRS Criminal Investigation in Los Angeles. "We look forward to working with our federal partners to ensure taxpayer and donor funds are spent in accordance with their original intended purposes."
The Source: Information from a press release provided by the U.S. Department of Justice.