Long Beach Cuts Ties With Homeless Services Provider Due To ‘Compliance Issues’

LONG BEACH, CA — The City of Long Beach has formally cut ties with homeless services provider First to Serve due to what the city calls ‘compliance issues’ when it comes to billing.

This week, the city fully transitioned to People Assisting The Homeless (PATH) as its new homeless services provider at city-funded shelters.

PATH will now operate 443 shelter beds across these sites, including the Colonial Motel, as part of Long Beach’s shelter system.

With the hiring of PATH, the city has ceased business with former operator First to Serve, which has been accused of not adhering to the terms of its contract.

Following a review by the Health and Human Services Department and the City Auditor’s Office, the City identified contract compliance issues with the former operator and began withholding payments in November 2025 while reviewing the matter.

“The City immediately took steps to ensure continuity of services for people staying in shelters by identifying a new operator capable of quickly assuming operations while also preparing for a full competitive procurement for long-term shelter operations later this year,” the City of Long Beach explained in a statement.

“The City takes contract compliance seriously and, when required, we go all the way, including terminating contracts,” Mayor Rex Richardson said.

The City Council selected PATH on March 10 to operate the City’s shelters, and the transition was completed on March 31. PATH brings extensive regional experience operating shelter systems and was recently selected as a lead service provider under the Los Angeles River Encampment Resolution Funding.

In partnership with Long Beach, PATH has already housed 60 people at the Colonial Motel within the past two weeks, reaching the location’s full capacity.

“The City Auditor’s Office remains committed to safeguarding taxpayer dollars and ensuring funds are used strictly as intended to benefit those they are meant to serve,” City Auditor Laura Doud said.

In the coming weeks, the city is expected to continue working with PATH to fill all available rooms that are ready for occupancy across Long Beach.

The full extent of the issues that First to Serve is accused of has yet to be revealed.

“The City’s investigation regarding contract compliance associated with prior service provider First to Serve remains ongoing, and no additional information is available at this time,” the city said in a statement.