Our outlet tests do not ask who is responsible for every failure in Los Angeles homelessness programs. They ask a narrower public accountability question: which office has the authority to require missing evidence before the next dollar, contract renewal, program expansion, audit closeout, or agency transfer moves forward? In a system with rising public spending, overlapping funding streams, and the July 1, 2026 transfer of County-funded programs to HSH, motion is not enough. The repair is to make radical transparency, via full-chain verification, a condition of future funding, contracting, monitoring, and public reporting.
The LAHSA-to-HSH Handoff Is a Records Custody Test
On July 1, 2026, HSH assumed direct administration of County-funded homelessness programs previously administered by LAHSA and other County entities, including hundreds of provider work orders.[County update] That handoff is not just administrative. It determines who controls the contracts, invoices, monitoring files, corrective-action records, advances, recoupments, data exports, and closeout certifications needed to verify what happened before the transfer and thereafter.
As of October 8, 2026, our review did not locate a public transfer-status ledger. Responsibility for current obligations and unresolved deficiencies remains unclear. The ledger should identify which records moved, which systems control them, which findings remain open, which advances or recoupments remain unresolved, who owns each corrective action, and which official certifies the completeness of the transfer.
The standard is simple: no funding stream should become less verifiable because the agency name changed. If LAHSA records were incomplete before the handoff, HSH should inherit the repair obligation, not the opacity. If a contract, invoice, monitoring file, or corrective action is needed for full-chain verification, the public should know who has it and who is responsible for making it visible.
The County
Auditor-Controller's May 21, 2026 report warned that
LAHSA records were incomplete and inaccurate and that underlying issues may persist with the transfer. That makes records custody the first repair gate, not a side issue.
[18]
August 2026 update: LAHSA announced financial-management reforms following a KPMG review and initiated a procurement for implementation support. Our review found no publicly available evidence demonstrating that these reforms improved payment timeliness or resolved reconciliation deficiencies.
September 2026 update: HSH announced that it had terminated Home at Last contracts following fiscal and administrative concerns and referred the matter to the County Auditor-Controller. This documents corrective action; recovery and final resolution remain to be verified.
Investigative scrutiny continued: LAist reported in July 2026 that LAHSA had completed no internal audits in years, including an unfinished review of $7 million in unused federal funding. September brought federal charges alleging more than $7.5 million diverted through Home at Last and a separate plea agreement in which Alexander Soofer admitted pocketing at least $2 million intended for homelessness services. The court orders blocking HUD's suspension did not resolve these separate accountability failures and criminal cases.
Who Can Make Outlets Work?
Each broken outlet described in Section 5 passes through offices with powers to set conditions, approve spending, renew contracts, require audits, demand records, or refuse payments until the public evidence chain is complete.
| Officials |
Authority levers |
| Los Angeles County supervisors |
Control the largest local funding and transition levers: Measure H/A spending plans, HSH implementation, LAHSA funding transfers, County contract standards, audit follow-through, and the records-custody requirements that should govern the LAHSA-to-HSH handoff. |
| City elected officials |
Control City homelessness appropriations, Inside Safe reporting conditions, City contract approvals, Controller access, and public reporting standards for City-funded operations. |
| State officials |
Control HHAP, ERF, Homekey, and CalAIM program conditions, including whether state awards require provider-level payment, delivery, monitoring, correction, and outcome records. |
| Federal officials |
Control HUD funding conditions and enforcement pressure, but federal action should not be the first time the public learns whether a local outlet is verifiable. |
The Radical Transparency Repair Standard
Every official who approves funding should know what full-chain verification requires at that point in the process. If a required link is missing, the office should be able to say who controls the record, when it will be published or certified, and whether the next payment, renewal, expansion, closeout, or transfer will move forward before the missing link is resolved.
