Public Spending: California housing & homelessness

LAO2026-02-18

Overview of Homeless Housing, Assistance, and Prevention Program Funding and Accountability (handout to Assembly Budget Subcommittee No. 7)

Legislative Analyst's Office. State (HHAP, HCD).

Grantees have nearly $1 billion (29 percent) left to spend from pre-2024-25 rounds

p. 3

Earlier rounds initially attempted to create positive performance incentives by setting aside “bonus” HHAP funding for grantees meeting specified outcomes. Due to the state’s fiscal condition, however, these funds were never used for that purpose and instead were swept as budget solution in 2024-25.

p. 6

As the state has added requirements, HHAP’s application and award time line has increased significantly.

p. 6

Full report

State Auditor2025-12-11

State High-Risk Audit Program – Other Area Reviewed: Accountability Over Homelessness Spending and Program Outcomes

California State Auditor. State of California (Cal ICH).

This year’s state high‑risk list does not include homelessness and the State’s efforts to improve accountability over related spending.

Accountability Over Homelessness Spending and Program Outcomes

Nevertheless, the State’s slow pace toward implementing AB 799 may cause us to add accountability over homelessness spending to our high‑risk list before our next cyclical update.

same section

During the 10‑month period from January 2025, when AB 799 became effective, through October 2025, Cal ICH has demonstrated limited progress toward completing the required planning and coordination necessary to make AB 799’s oversight reporting possible.

same section

Full report

Court order · settlement-compliance ruling2025-06-24

Order Granting in Part and Denying in Part Plaintiffs' Motions for Settlement Agreement Compliance, LA Alliance for Human Rights v. City of Los Angeles, No. 2:20-cv-02291 (Dkt. 991)

U.S. District Court, Central District of California (Judge David O. Carter). City of Los Angeles.

a review of the record reveals missed milestones, neglected obligations, and a troubling lack of oversight.

Conclusion, p. 61

Weighing all of the options, this is not the time for a receivership over the City’s homelessness response system.

p. 60

The Court institutes a monitor to oversee compliance and ask the hard questions on behalf of Angelenos. It mandates quarterly, in-court hearings, beginning November 12, 2025, and continuing as needed, to ensure these commitments are honored.

pp. 61–62

Full report

Court-ordered assessment (not an audit)2025-05-14

Independent Assessment of City-Funded Homelessness Assistance Programs (LA Alliance for Human Rights v. City of Los Angeles, No. 2:20-cv-02291, Dkt. 905)

Alvarez & Marsal, independent assessor retained by U.S. District Judge David O. Carter. City of Los Angeles (Roadmap, Alliance and Inside Safe programs), LAHSA.

A&M identified approximately $2.3 billion of funding, including appropriations, commitments, or spending, related to the City Programs across the Lookback Period.

Executive Summary, p. 4 (Lookback Period June 1, 2020 – June 30, 2024)

Insufficient financial accountability led to an inability to trace substantial funds allocated to the City Programs while fragmented data systems across LAHSA, the City, and the County, in combination with inconsistent reporting formats, made it difficult to confirm reported bed counts, track participant outcomes, and align financial data with performance metrics.

Executive Summary, p. 4

since the City and LAHSA were unable to identify and calculate the relevant expenses for all City Programs, A&M was unable to quantify the total amount of money spent to establish the beds and provide associated supportive services.

pp. 4–5

Full report

LAO2025-03-05

The 2025-26 Budget: Oversight of Encampment Resolution Funding

Legislative Analyst's Office. State (ERF program, HCD/Cal ICH).

In total, the 123 ERF grantees have spent $258 million, leaving $598 million (about 70 percent of grant funds) still to be spent.

Figure 5 discussion

Despite the various reporting requirements described in the previous section, though, as of this writing, no data have been provided to the Legislature on how many people living in an encampment have received permanent housing (or any other type of housing).

Little Data Provided to Date on Program Outputs and Outcomes

the Legislature is not yet able to determine whether--and where--the funds are achieving their intended goal of encampment resolution (as opposed to encampment sweeps or other actions inconsistent with the program's statutory intent).

Assessment

Full report

County Auditor-Controller2024-11-19

Los Angeles Homeless Services Authority (LAHSA) – Finance, Contracts, Risk Management, and Grants Management Review (Board presentation summary)

Los Angeles County Department of Auditor-Controller. LAHSA (City/County of Los Angeles joint authority).

LAHSA awarded $50.8 million in Measure H working capital (multi-year) cash advances to various subrecipients beginning in Fiscal Year (FY) 2017-18, and did not establish formal agreements to determine how and when the funds would be repaid.

Summary of Key Findings

LAHSA only recovered approximately $2.5 million (5%) as of July 8, 2024.

Summary of Key Findings

as of July 2024, had approximately $8 million in outstanding advances issued to subrecipients that were carried over from FYs 2016-17 through 2022-23.

Annual Cash Advances

Full report

State Auditor2024-04-09

Homelessness in California: The State Must Do More to Assess the Cost-Effectiveness of Its Homelessness Programs

California State Auditor. State of California (Cal ICH, HCD, CDSS).

The State lacks current information on the ongoing costs and outcomes of its homelessness programs, because Cal ICH has not consistently tracked and evaluated the State’s efforts to prevent and end homelessness.

Cover letter

Although Cal ICH reported in 2023 financial information covering fiscal years 2018–19 through 2020–21 related to all state-funded homelessness programs, it has not continued to track and report this data since that time, despite the significant amount of additional funding the State awarded to these efforts in the past two years.

Cover letter

we determined that the Department of Housing and Community Development’s Homekey program and the California Department of Social Services’ CalWORKs Housing Support Program appear to be cost‑effective. However, we were unable to assess the cost‑effectiveness of three other programs we reviewed because the State has not collected sufficient data on the outcomes of these programs.

Cover letter

Full report

State Auditor2024-04-09

Homelessness in California: San José and San Diego Must Do More to Plan and Evaluate Their Efforts to Reduce Homelessness

California State Auditor. Cities of San José and San Diego.

This finding names more than one city. It is not split.

San José and San Diego do not completely report on all of their homelessness funding.

Fact sheet, Key Findings

neither city could definitively identify all its revenues and expenditures related to its homelessness efforts because the cities have not established a mechanism, such as a spending plan, to track and report such information.

Fact sheet

Neither city has consistently evaluated the effectiveness of its homelessness programs.

Fact sheet

Full report

City Controller2024

Pathways to Permanent Housing (performance audit of LAHSA and the City of Los Angeles, interim to permanent housing, FY 2019–2023)

Los Angeles City Controller. City of Los Angeles / LAHSA.

1 in 4 City-funded interim housing beds went unused costing taxpayers an estimated $218 million between FY 2019–FY 2023.

Key Findings

Nearly 1 in 3 people who expressed interest in a shelter bed were unable to secure one during FY22 and FY23. (16,000 people were removed from the shelter bed waiting list after an average of six months.)

Key Findings

More than 50% of people exiting City-funded interim housing returned to homelessness or unknown destinations.

Key Findings

Full report

Federal OIG2022-01-20

The Los Angeles Homeless Services Authority, Los Angeles, CA, Did Not Always Administer Its Continuum of Care Program in Accordance With HUD Requirements

U.S. Department of Housing and Urban Development, Office of Inspector General. LAHSA (federal CoC program).

The Authority did not fully meet the goals and objectives of the program and did not always follow program requirements. Specifically, it (1) did not use $3.5 million in CoC grant awards and left the funds to expire, (2) did not support Homeless Management Information System and planning grant costs, and (3) did not submit timely annual performance reports (APR).

Summary

the U.S. Department of Housing and Urban Development (HUD) does not have assurance $879,847 in salary and rent costs were for the CoC grants

Summary

Full report