Fraud Cases Target LA Homelessness Programs

Federal prosecutors charged three defendants Wednesday in separate homelessness fraud cases involving alleged misuse of taxpayer funds.

Program Managers Gain Upward Mobility

Rep. Michael Cloud warned that the only people really getting upward mobility in these programs are the people running the programs.

“The only people really getting upward mobility in these programs, it would seem, is the people running the programs.”

Fraud Involves $75 Million Misuse

Los Angeles’ homelessness agency paid one of the suspect nonprofits more than $75 million, according to federal prosecutors.

System Rewards Spending Over Outcomes

Cloud said the system appears to reward spending and program activity without adequately measuring lasting outcomes.

Housing First Philosophy Fails

The 'housing first' experiment failed Americans by warehousing the vulnerable without results, according to HUD.

“This ideology promised to end homelessness. Instead, billions of taxpayer dollars were spent while homelessness increased to record levels.”

HUD Suspends LAHSA Funding

Under Secretary Scott Turner moved to suspend LAHSA this year, citing alleged failures in financial management and internal controls.

New Funding Focuses on Supportive Services

The $4.04 billion Continuum of Care funding will prioritize transitional housing and supportive services while preventing fraud.