{"id":52299,"date":"2025-11-14T02:50:09","date_gmt":"2025-11-14T02:50:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ca\/52299\/"},"modified":"2025-11-14T02:50:09","modified_gmt":"2025-11-14T02:50:09","slug":"judge-blasts-city-of-la-for-fraud-over-safe-sleep-site-funding-and-capacity-numbers","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ca\/52299\/","title":{"rendered":"Judge blasts city of LA for &#8216;fraud\u2019 over safe sleep site funding and capacity numbers"},"content":{"rendered":"<p>There\u2019s a parking lot in the city of Los Angeles lined with plywood platforms where unhoused people can set up tents and access meals, bathrooms and other services \u2014 all at taxpayers\u2019 expense.<\/p>\n<p>The Lincoln Safe Sleep Village in South L.A. opened in 2022 and is one of only a handful of similar encampments around the state. Public records show it was contracted to provide space for up to 88 residents last fiscal year.<\/p>\n<p>But two observers who made separate visits to the location during that time \u2014 one of them a commissioner with the governing body that oversees the Los Angeles Homeless Services Authority, the other a \u201cspecial master\u201d appointed by a federal judge \u2014 found the site was operating at half capacity.<\/p>\n<p>Still, LAHSA paid a nonprofit organization $2.3 million to operate the site \u2014 with 88 spots.<\/p>\n<p>A federal judge this week described the situation as \u201cobvious fraud.\u201d<\/p>\n<p>The nonprofit that runs the site, San Francisco-based Urban Alchemy, told LAist it reduced the site\u2019s capacity by half in April 2024 at the request of L.A. city officials and LAHSA. The homeless services agency did not update its funding formula for the site until more than a year later. <\/p>\n<p>LAHSA records show Urban Alchemy was paid in full.<\/p>\n<p>The situation has emerged at a time when LAHSA is under intense scrutiny for failing to properly manage hundreds of millions of dollars in contracts with service providers, and the city of L.A. remains under a court order to provide more shelter for the city\u2019s unhoused residents.<\/p>\n<p>Federal court scrutiny<\/p>\n<p>During a sometimes tense federal court hearing Wednesday, U.S. District Court Judge David O. Carter described the situation at the Lincoln Safe Sleep Village as &#8220;obvious fraud.&#8221;  The hearing was the latest in a series of court appearances stemming from a settlement between the city of L.A. and a group of downtown business and property owners known as the L.A. Alliance for Human Rights.<\/p>\n<p>The judge has been overseeing the settlement, specifically the city\u2019s progress in meeting obligations to provide housing and shelter for unhoused people. The agreement requires the city to open nearly 13,000 new shelter beds by next year.<\/p>\n<p>According to testimony on Wednesday, Michele Martinez \u2014 the special master Carter appointed to help enforce the terms of the settlement \u2014 visited the Safe Sleep Village on June 9. She tried to verify the number of beds available at the site with city officials, but did not get an answer, Carter said. <\/p>\n<p>Three weeks later, the city responded by questioning whether Martinez\u2019s inquiry was proper. <\/p>\n<p>In a June 30 email, L.A. Deputy City Attorney Jessica Mariani argued that Martinez had \u201cno authority or basis to review or provide any assessments.\u201d However, the Mariani added, the city was still looking into Martinez\u2019 questions about the safe sleep site.<\/p>\n<p>Carter questioned Mariani during the hearing, noting that the city (through LAHSA) continued to pay full amounts for more than 80 spots at the site and tell the court those spots existed, even though at least half appeared to not be available at the time.<\/p>\n<p>&#8220;Is the City&#8217;s position when the Special Master notes obvious fraud and that the documents don&#8217;t match, that you are bringing forth to this Court that Ms. Martinez should disregard that and not report this to the Court when you try to curtail her monitoring activities?\u201d the judge said, according to a<br \/>\n    <a class=\"Link\" href=\"https:\/\/www.cacd.uscourts.gov\/sites\/default\/files\/Dkt%201076%20Transcript%20for%2011.12.2025%20Hearing.pdf\" target=\"_blank\" data-cms-ai=\"0\" rel=\"nofollow noopener\">transcript of the proceedings<\/a><br \/>\n    .<\/p>\n<p>Carter described the city\u2019s actions as potentially \u201ccontemptuous.\u201d<\/p>\n<p>LAist reached out to Mariani and the City Attorney\u2019s Office, but has not yet received a response.<\/p>\n<p>Weeks before the special master\u2019s visit to the site, LAHSA Commissioner Justin Szlasa stopped by the South L.A. campground. The 10-member LAHSA Commission makes policy and funding decisions for the regional homelessness agency.<\/p>\n<p>Szlasa said later that he noticed during his visit that half of the campground was closed down. He said budget documents sent to him for approval described the site as a \u201clow-cost, high-impact\u201d program serving 88 people.<\/p>\n<p>\u201cWe at LAHSA must ensure that we receive what we are contracting for,\u201d Szlasa wrote in a social media<br \/>\n    <a class=\"Link\" href=\"https:\/\/www.linkedin.com\/feed\/update\/urn:li:activity:7391898930726412288\/\" target=\"_blank\" data-cms-ai=\"0\" rel=\"nofollow noopener\">post<\/a><br \/>\n     describing his findings.<\/p>\n<p>He filed a public records request with LAHSA to obtain the contracts and payment details for the Urban Alchemy campground.<\/p>\n<p>\u201cI want to understand, first and foremost, why this was misrepresented to the Commission,\u201d Szlasa said. \u201cThen I want to understand if Urban Alchemy was actually in compliance with the contracts.\u201d <\/p>\n<p>He continued: \u201cI am concerned this Safe Sleep program \u2014 which I happened to arbitrarily spot-check \u2014 is not an outlier.\u201d<\/p>\n<p>    <img decoding=\"async\" class=\"Image\" alt=\"Urban Alchemy \" data-image-size=\"articleImage\" width=\"960\" height=\"640\"  src=\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2025\/11\/1763088609_795_\" loading=\"lazy\"\/><\/p>\n<p>A drone&#8217;s view of the South LA site prior to one section closing down in 2024. <\/p>\n<p>(<\/p>\n<p>Jay L. Clendenin<\/p>\n<p>\/<\/p>\n<p>Los Angeles Times via Getty Images<\/p>\n<p>)<\/p>\n<p>LAHSA response<\/p>\n<p>LAist reached out to LAHSA for more information about its contract with Urban Alchemy and about the number of people who lived at the Lincoln Safe Sleep Village during the last fiscal year.<\/p>\n<p>LAHSA authorities said the site had a 41% average \u201cutilization rate\u201d during the budget year that ended in June, based on capacity information Urban Alchemy provided in a database called the Homeless Management Information System. <\/p>\n<p>But the agency\u2019s calculations appear to have been based on outdated capacity data, not on how many spaces were actually available for use. <\/p>\n<p>LAHSA said it was Urban Alchemy\u2019s responsibility to update the information in the database. <\/p>\n<p>&#8220;All providers are required to record their data in [the database]; if the data is inaccurate, it would be based on that data entry,\u201d a LAHSA spokesperson said.<\/p>\n<p>LAHSA did not respond to LAist\u2019s questions about when it learned capacity at the site had been reduced. An agency spokesperson said LAHSA has been \u201cengaged with\u201d Urban Alchemy about the site since April 2024, and that the program has been \u201cunder review.\u201d<\/p>\n<p>In April, when the city of L.A. submitted its quarterly<br \/>\n    <a class=\"Link\" href=\"https:\/\/www.cacd.uscourts.gov\/sites\/default\/files\/Dkt%20891%20City%20Status%20Report%20MOU.pdf\" target=\"_blank\" data-cms-ai=\"0\" rel=\"nofollow noopener\">bed report<\/a><br \/>\n     to Carter, it described the South L.A. campground program as having 88 beds. <\/p>\n<p>But approximately half of those beds had been unavailable for about a year, according to Urban Alchemy. <\/p>\n<p>The city adjusted the count to 46 spots in its July 2025 update.<\/p>\n<p>LAHSA\u2019s troubles\u00a0<\/p>\n<p>LAHSA manages more than $742 million in contracts with 121 service providers. <\/p>\n<p>Over the past year,<br \/>\n    <a class=\"Link\" href=\"https:\/\/file.lacounty.gov\/SDSInter\/auditor\/cmr\/1170598_2024-11-19LAHSA-Finance_Contracts_RiskManagement_andGrantsManagementReview_February27_2024_BoardAgendaItem4_.pdf\" target=\"_blank\" data-cms-ai=\"0\" rel=\"nofollow noopener\">audits<\/a><br \/>\n     and<br \/>\n    <a class=\"Link\" href=\"https:\/\/www.cacd.uscourts.gov\/sites\/default\/files\/Dkt%20905%20FINAL%20AM%20REPORT.pdf\" target=\"_blank\" data-cms-ai=\"0\" rel=\"nofollow noopener\">reports<\/a><br \/>\n     found the agency had mismanaged hundreds of millions in contracts for homeless services, including a failure to collect accurate data on nonprofit vendors or properly track how they spent taxpayer dollars. <\/p>\n<p>The South L.A. campground is the only \u201csafe sleep\u201d site of its kind currently in LAHSA\u2019s portfolio, the agency told LAist. LAHSA also administers funding for about a dozen \u201csafe parking\u201d sites, where unhoused people can legally park and live out of vehicles they own. <\/p>\n<p>LAHSA has paid Urban Alchemy more than $12 million to operate the Lincoln Safe Sleep Village since 2021, according to the agency\u2019s records. <\/p>\n<p>The  nonprofit told LAist has operated under the terms of its contract, and that it followed direction from the city to close down part of the site, reducing its capacity.<\/p>\n<p>The city of L.A. has not responded to questions from LAist about that claim, including whether it gave the nonprofit that direction.<\/p>\n<p>&#8220;We&#8217;re focused on providing the highest-level of service for our guests,\u201d Urban Alchemy spokesperson Jess Montejano told LAist. \u201cGiven the resources provided, we&#8217;re helping as many guests as we can have a safe place to sleep and get better connected to services and support.&#8221;<\/p>\n<p>Urban Alchemy did not clarify why it was told to close part of the campground, but property records show a South L.A. nonprofit called the Coalition for Responsible Community Development purchased the property in 2020. <\/p>\n<p>It has<br \/>\n    <a class=\"Link\" href=\"https:\/\/coalitionrcd.org\/wp-content\/uploads\/2023\/02\/Historic-Lincoln-Theater-One-pager.pdf\" target=\"_blank\" data-cms-ai=\"0\" rel=\"nofollow noopener\">plans<\/a><br \/>\n     to convert the property into a 60-unit affordable housing complex. Until that project is ready to start construction, the site is expected to keep operating as a safe sleeping location, according to the office of L.A. City Councilmember Curren Price, who represents the area. <\/p>\n<p>\u201cWhen the site first opened, beds were consistently full,\u201d Angelina Valencia-Dumarot, Price\u2019s communications director, told LAist Thursday. \u201cThat\u2019s why the current occupancy rate is especially concerning.\u201d<\/p>\n<p>She said council offices are too often left out of updates by LAHSA. <\/p>\n<p>\u201cWe can\u2019t address problems quickly if we\u2019re finding out only after numbers fall or from the press,\u201d Valencia-Dumarot said.<\/p>\n<p>    <img decoding=\"async\" class=\"Image\" alt=\"Urban Alchemy \" data-image-size=\"articleImage\" width=\"960\" height=\"640\"  src=\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2025\/11\/1763088609_284_\" loading=\"lazy\"\/><\/p>\n<p>A sign at the South LA campground <\/p>\n<p>(<\/p>\n<p>Jay L. Clendenin<\/p>\n<p>\/<\/p>\n<p>Los Angeles Times via Getty Images<\/p>\n<p>)<\/p>\n<p>What should this cost?\u00a0<\/p>\n<p>At full capacity, the monthly operating cost for the South L.A. campground would have been about $2,180 per participant. <\/p>\n<p>Shayla Myers, a senior attorney with the Legal Aid Foundation of Los Angeles, said these campground sites are expensive to operate. <\/p>\n<p>\u201cThey are the kinds of programs that shock the conscience of taxpayers,\u201d Myers said, adding that they cost much more than paying rent, while keeping people unsheltered. <\/p>\n<p>LAHSA staff say per-person costs for homeless programs differ based on location, hours and staffing needs.<\/p>\n<p>Examples include:<\/p>\n<p>The region\u2019s safe parking sites, which receive about $1,200 per participant per month to provide a set of similar resources to vehicle dwellers, according to LAHSA contract documents.\u00a0LAHSA programs that provide temporary rental assistance to families and cost about $2,000 per household per month, officials said.\u00a0The city of L.A.\u2019s Inside Safe program, which moves people from encampments to hotel rooms. It costs about $6,900 per person served each month, according to a recent report by the city\u2019s chief administrative officer.<\/p>\n<p>Urban Alchemy has operated temporary campgrounds for unhoused people in the city and county of L.A. since 2021, including one in<br \/>\n    <a class=\"Link\" href=\"https:\/\/www.kcrw.com\/shows\/greater-la\/stories\/safe-sleep-la-official-campground\" target=\"_blank\" data-cms-ai=\"0\" rel=\"nofollow noopener\">Virgil Village<\/a><br \/>\n     that has since closed and another in<br \/>\n    <a class=\"Link\" href=\"https:\/\/www.culvercity.gov\/Services\/Housing-Homeless-Human-Services\/Homeless-Reporting-Dashboard\/Wellness-Village\" target=\"_blank\" data-cms-ai=\"0\" rel=\"nofollow noopener\">Culver City<\/a><br \/>\n     that is still operating. <\/p>\n<p>In 2021, L.A.\u2019s city administrative officer<br \/>\n    <a class=\"Link\" href=\"https:\/\/cityclerk.lacity.org\/onlinedocs\/2020\/20-0841_rpt_cao_03-18-2021.pdf\" target=\"_blank\" data-cms-ai=\"0\" rel=\"nofollow noopener\">reported<\/a><br \/>\n     the Virgil Village campground cost more than $2,600 per participant per month. <\/p>\n<p>Culver City<br \/>\n    <a class=\"Link\" href=\"https:\/\/laist.com\/news\/housing-homelessness\/culver-city-homeless-unhoused-safe-sleep-camping-ban\" target=\"_blank\" data-cms-ai=\"0\" rel=\"nofollow noopener\">opened its campground<\/a><br \/>\n     in 2023, so that the city could legally enforce a ban on camping in public approved that February. The city spent nearly $4.6 million on the campground in 2025, according to<br \/>\n    <a class=\"Link\" href=\"https:\/\/www.culvercity.org\/files\/assets\/public\/v\/4\/documents\/finance\/finance-dept-page\/proposed-budget-book-fy-2025-2026-2025-05-13-web.pdf\" target=\"_blank\" data-cms-ai=\"0\" rel=\"nofollow noopener\">budget documents<\/a><br \/>\n    .<\/p>\n<p>The Culver City site has space for 40 people, and the city says the occupancy rate is around<br \/>\n    <a class=\"Link\" href=\"https:\/\/www.culvercity.gov\/Services\/Housing-Homeless-Human-Services\/Homeless-Reporting-Dashboard\/Wellness-Village\" target=\"_blank\" data-cms-ai=\"0\" rel=\"nofollow noopener\">85% this year<\/a><br \/>\n    .  That\u2019s a cost of more than $11,000 per person served each month.<\/p>\n<p>Myers said interventions like this will always cost more than moving people into homes. <\/p>\n<p>\u201cIt doesn\u2019t matter whether you&#8217;re paying for a hotel room, a shelter, or in this case, lines drawn on a parking lot,\u201dsaid Myers. \u201cContinuing to provide shelter to folks who are unhoused \u2014 rather than providing permanent housing \u2014 is always going to be exponentially more expensive.\u201d<\/p>\n<p>After the city finalized its budget in June, LAHSA allocated $1.2 million \u2014 instead of $2.3 million \u2014 to Urban Alchemy for the South L.A. campground for the current budget year. <\/p>\n<p>LAHSA now lists the site\u2019s capacity as 46 tent spaces, authorities said. The agency said the site now has a \u201cutilization\u201d rate of 70%, compared to 41% the previous fiscal year.<\/p>\n<p>That\u2019s at a cost of about $3,100 per participant per month.<\/p>\n<p>Nick Gerda and Makenna Sievertson contributed to this story.<\/p>\n","protected":false},"excerpt":{"rendered":"There\u2019s a parking lot in the city of Los Angeles lined with plywood platforms where unhoused people can&hellip;\n","protected":false},"author":2,"featured_media":52300,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[33191,3130,969,7254,33189,48,52,51,6390,33190,47,50,22227,49,6877],"class_list":["post-52299","post","type-post","status-publish","format-standard","has-post-thumbnail","category-los-angeles","tag-campground","tag-fraud","tag-homeless","tag-homeless-encampment","tag-judge-david-o-carter","tag-la","tag-la-headlines","tag-la-news","tag-lahsa","tag-lincoln-safe-sleep-village","tag-los-angeles","tag-los-angeles-headlines","tag-los-angeles-homeless-services-authority","tag-los-angeles-news","tag-south-l-a"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/52299","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/comments?post=52299"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/52299\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media\/52300"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media?parent=52299"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/categories?post=52299"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/tags?post=52299"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}