A U.S. House subcommittee has summoned Los Angeles Mayor Karen Bass to Washington D.C. to testify about allegations of "waste, fraud and abuse" concerning more than $1 billion in federal homelessness funding distributed through the Los Angeles Homeless Services Authority (LAHSA).
The Subcommittee on Delivering on Government Efficiency, led by Rep. Tim Burchett (R-Tenn.), has scheduled a public hearing for September 15. The panel is scrutinizing the distribution of federal grants intended to combat homelessness, with a specific focus on LAHSA's allocation of funds to nonprofits in the Los Angeles area.
In a letter to Mayor Bass, Burchett stated, "Because Los Angeles officials have not adequately protected federal taxpayer dollars, it appears that many nonprofits to which those funds have been allocated are not using them for their intended purpose." The DOGE subcommittee, part of the House Committee on Oversight and Government Reform, possesses broad authority to investigate such matters.
The committee has requested documents from the mayor's office covering the period from January 1, 2020, to the present. These documents should include records pertaining to LAHSA's internal controls, the utilization of federal homelessness funds, and communications between the mayor's office, LAHSA, the City Council, and the Los Angeles County Board of Supervisors. The deadline for submitting these documents is September 14, one day prior to the hearing.
LAHSA has reportedly received over $1 billion in federal funding since 2021, with $220 million allocated in 2024 alone. The panel's investigation is also informed by a Department of Housing and Urban Development (HUD) inspector general's report concerning LAHSA's management of federal funds. This report cited alleged "repeated false statements" and deficiencies in financial management, internal controls, and safeguards against conflicts of interest.
In June, HUD suspended further federal funding to LAHSA until the agency could demonstrate sufficient safeguards for taxpayer dollars. Homelessness remains a significant issue in Los Angeles, with California having approximately 182,000 homeless individuals, including over 45,000 in the city of Los Angeles, a 3.4% increase from the previous year.
LAHSA functions as a joint city-county agency overseeing homeless services, with federal funds subject to shared oversight. Mayor Bass and the LA City Council appoint half of LAHSA's governing board, while the county supervisors appoint the remainder.
The committee has highlighted specific instances raising concerns about LAHSA's oversight. One such instance involves a $2.1 million contract authorized by former LAHSA CEO Va Lecia Adams Kellum with Upward Bound House, an organization where her husband was employed. Although Kellum had previously stated she recused herself from matters involving her husband's employer, public records indicated she personally approved the contract. LAHSA attributed this to the contract "inadvertently ending up" before her.
Additionally, the panel cited reporting on 1736 Family Crisis Center, which has received over $36 million in federal grants since 2008, with at least $25 million channeled through LAHSA since 2021. The letter noted that the organization's CEO, Carol Adelkoff, received $1.6 million in total compensation over two years while residing in Hawaii. Her compensation in 2024 was $742,181 and $907,923 the previous year, including a $495,000 bonus. This was contrasted with the median annual pay of $159,737 for leaders at 16 comparable Los Angeles-area nonprofits.
