Five-second answer

Claim we investigated

Audits have repeatedly found that California and Los Angeles can't track whether homelessness money is working

True. Seven reports by five federal, state, city, county and court reviewers since 2022 found tracking or accounting gaps. From 2022 to 2026, HUD's inspector general, the Los Angeles City Controller, the California State Auditor, a court-appointed assessor and the Los Angeles County Auditor-Controller each found that homelessness money was not fully tracked, accounted for or measured against results.

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FactHub rates the claim “Audits have repeatedly found that California and Los Angeles can't track whether homelessness money is working” True (high confidence): Seven reports by five federal, state, city, county and court reviewers since 2022 found tracking or accounting gaps. Reviewed October 30, 2026. https://facthub.org/n/article/la-homelessness-audits-tracking-trend/1

One-minute summary

What the evidence establishes

  • Established. HUD's inspector general found in 2022 that LAHSA let $3.5 million in federal homelessness grants expire unused.
  • Established. The City Controller found LAHSA's bed system too unreliable to use (2023) and an estimated $218 million in unused City-funded beds (2024).
  • Established. The State Auditor found in 2024 that California lacked current data on the costs and outcomes of its homelessness programs.
  • Established. A court-appointed assessor found in 2025 that Los Angeles could not trace substantial homelessness funds.
  • Established. In 2026 LAHSA could not give the County Auditor-Controller complete financial statements, including a balance sheet.
  • Context. The State Auditor did not add homelessness to its 2025 high-risk list, though it noted concern about the state homelessness council.
  • Not shown. That the money was stolen, or that California and Los Angeles track spending worse than other states and cities.
Important context: Los Angeles homelessness programs are funded by the city, the county, the state and the federal government, and much of the money flows through the Los Angeles Homeless Services Authority (LAHSA), a joint city-county agency, to nonprofit providers. Several bodies oversee pieces of that system: HUD's inspector general for federal grants, the elected City Controller for city money, the County Auditor-Controller for county money, the State Auditor for state programs, and, since 2025, a federal judge overseeing a homelessness lawsuit. This check asks whether their reviews have repeatedly found that the money cannot be tracked or tied to results; it does not ask whether money was stolen, which a companion check addresses.

The evidence

The conclusion rests on the combined record. Expand each item to see its role and limitations.

Independence note: This check uses 6 methods across 5 institutions and 1 country or international grouping.
Evidence map
Method Institution / country Year(s) What it shows Key limitation Primary links
Performance audits of City-funded interim housing by the elected City Controller Los Angeles City Controller United States 2023, 2024 In December 2023 the Controller found LAHSA's bed reservation system so unreliable that LAHSA relied on daily census emails, making it next to impossible to know how many beds were available. A December 2024 audit found one in four City-funded interim beds went unused, at an estimated cost of $218 million over FY2019-FY2023, and fewer than one in five residents reached permanent housing. The $218 million is the Controller's estimate of what unused beds cost, not money lost or stolen. Both audits cover City-funded interim housing only. Los Angeles City Controller Los Angeles City Controller
Court-ordered financial and performance assessment of three city homelessness programs, 2020-2024 Alvarez & Marsal (for the U.S. District Court) United States 2025 Alvarez & Marsal, retained by the federal judge in LA Alliance v. City of Los Angeles, reviewed about $2.3 billion in city homelessness funding and found that insufficient financial accountability made it impossible to trace substantial funds, and that the city did not routinely reconcile spending with its homelessness budget. The firm calls its work an assessment, not an audit, relied on city and LAHSA data, and did not allege fraud. Alvarez & Marsal Public Sector Services, for the U.S. District Court
Limited financial and operational review by the County Auditor-Controller Los Angeles County Auditor-Controller United States 2026 In May 2026 the County Auditor-Controller reported that LAHSA could not provide complete financial statements and accounting records, including a balance sheet, which prevented a full-scope review. A limited review prompted by late payments to providers, not a full audit of LAHSA's spending. Los Angeles County Auditor-Controller
Federal inspector general audit of LAHSA's Continuum of Care grants HUD Office of Inspector General United States 2022 HUD's Office of Inspector General found in January 2022 that LAHSA did not fully meet its Continuum of Care program goals, let $3.5 million in grants expire unused, and could not support $879,847 in salary and rent charges. Covers LAHSA's federal Continuum of Care grants only, a small share of all homelessness spending in Los Angeles. HUD Office of Inspector General
State audit of the California Interagency Council on Homelessness and state programs; State High-Risk Audit Program report California State Auditor United States 2024, 2025 In April 2024 the State Auditor found the state lacked current information on the costs and outcomes of its homelessness programs because its homelessness council had not consistently tracked them, and had not continued reporting the data after 2023. In December 2025 it chose not to list homelessness accountability as a high-risk issue but recorded concern about the council's follow-through. The 2024 audit reviewed state programs and San Jose and San Diego, not Los Angeles; the 2025 report did not designate homelessness high-risk. California State Auditor California State Auditor
FactHub register of audit findings and fraud cases, compiled from the primary reports FactHub United States 2022, 2023, 2024, 2025, 2026 FactHub's register lists at least one oversight finding of waste or mismanagement of homelessness money in each year from 2022 to 2026, from five different reviewers. A curated selection of reports FactHub verified, not every audit; counts show recurrence, not the size of problems. FactHub
1. The City Controller found unreliable bed data and costly unused beds Performance audits of City-funded interim housing by the elected City Controller

In December 2023 the Controller found LAHSA's bed reservation system so unreliable that LAHSA relied on daily census emails, making it next to impossible to know how many beds were available. A December 2024 audit found one in four City-funded interim beds went unused, at an estimated cost of $218 million over FY2019-FY2023, and fewer than one in five residents reached permanent housing.

Limit: The $218 million is the Controller's estimate of what unused beds cost, not money lost or stolen. Both audits cover City-funded interim housing only.

Verify: Interim Housing audit (Dec. 5, 2023) Pathways to Permanent Housing audit (December 2024)

2. A court-appointed assessor could not trace substantial city funds Court-ordered financial and performance assessment of three city homelessness programs, 2020-2024

Alvarez & Marsal, retained by the federal judge in LA Alliance v. City of Los Angeles, reviewed about $2.3 billion in city homelessness funding and found that insufficient financial accountability made it impossible to trace substantial funds, and that the city did not routinely reconcile spending with its homelessness budget.

Limit: The firm calls its work an assessment, not an audit, relied on city and LAHSA data, and did not allege fraud.

Verify: Independent Assessment of City-Funded Homelessness Assistance Programs (Dkt. 905, LA Alliance v. City of Los Angeles, May 14, 2025)

3. LAHSA could not produce a complete balance sheet for county auditors Limited financial and operational review by the County Auditor-Controller

In May 2026 the County Auditor-Controller reported that LAHSA could not provide complete financial statements and accounting records, including a balance sheet, which prevented a full-scope review.

Limit: A limited review prompted by late payments to providers, not a full audit of LAHSA's spending.

Verify: LAHSA Financial and Operational Process Review, Report B26003 (May 21, 2026)

4. HUD's inspector general found unused grants and unsupported costs Federal inspector general audit of LAHSA's Continuum of Care grants

HUD's Office of Inspector General found in January 2022 that LAHSA did not fully meet its Continuum of Care program goals, let $3.5 million in grants expire unused, and could not support $879,847 in salary and rent charges.

Limit: Covers LAHSA's federal Continuum of Care grants only, a small share of all homelessness spending in Los Angeles.

Verify: LAHSA Did Not Always Administer Its Continuum of Care Program in Accordance With HUD Requirements (Report 2022-LA-1001, Jan. 20, 2022)

5. The State Auditor found California lacked cost and outcome data State audit of the California Interagency Council on Homelessness and state programs; State High-Risk Audit Program report

In April 2024 the State Auditor found the state lacked current information on the costs and outcomes of its homelessness programs because its homelessness council had not consistently tracked them, and had not continued reporting the data after 2023. In December 2025 it chose not to list homelessness accountability as a high-risk issue but recorded concern about the council's follow-through.

Limit: The 2024 audit reviewed state programs and San Jose and San Diego, not Los Angeles; the 2025 report did not designate homelessness high-risk.

Verify: Homelessness in California: The State Must Do More to Assess the Cost-Effectiveness of Its Homelessness Programs (Report 2023-102.1, April 9, 2024) State High-Risk Audit Program (Report 2025-601, Dec. 11, 2025)

6. Findings recur in every year from 2022 to 2026 FactHub register of audit findings and fraud cases, compiled from the primary reports

FactHub's register lists at least one oversight finding of waste or mismanagement of homelessness money in each year from 2022 to 2026, from five different reviewers.

Limit: A curated selection of reports FactHub verified, not every audit; counts show recurrence, not the size of problems.

Verify: Audit findings and fraud cases involving Los Angeles and California public money, 2022-2026

Oversight findings on LA and California homelessness money recurred every year since 2022Entries in FactHub's register of audit findings and fraud cases, by year and category, January 2022 to September 2026.{"width":960,"height":540,"plot":{"left":90,"top":70,"right":926,"bottom":482},"yDomain":[0,5],"series":[{"name":"Waste or mismanagement","color":"#176b87"},{"name":"Fraud: convicted","color":"#b6542c"},{"name":"Fraud: charged or pending","color":"#684b9b"}],"points":[{"series":0,"x":173.6,"y":399.6,"xLabel":"2022","yLabel":"1"},{"series":1,"x":173.6,"y":399.6,"xLabel":"2022","yLabel":"0"},{"series":2,"x":173.6,"y":399.6,"xLabel":"2022","yLabel":"0"},{"series":0,"x":340.8,"y":399.6,"xLabel":"2023","yLabel":"1"},{"series":1,"x":340.8,"y":399.6,"xLabel":"2023","yLabel":"0"},{"series":2,"x":340.8,"y":399.6,"xLabel":"2023","yLabel":"0"},{"series":0,"x":508,"y":317.2,"xLabel":"2024","yLabel":"2"},{"series":1,"x":508,"y":234.8,"xLabel":"2024","yLabel":"1"},{"series":2,"x":508,"y":234.8,"xLabel":"2024","yLabel":"0"},{"series":0,"x":675.2,"y":317.2,"xLabel":"2025","yLabel":"2"},{"series":1,"x":675.2,"y":234.8,"xLabel":"2025","yLabel":"1"},{"series":2,"x":675.2,"y":234.8,"xLabel":"2025","yLabel":"0"},{"series":0,"x":842.4,"y":399.6,"xLabel":"2026","yLabel":"1"},{"series":1,"x":842.4,"y":399.6,"xLabel":"2026","yLabel":"0"},{"series":2,"x":842.4,"y":70,"xLabel":"2026","yLabel":"4"}]}Oversight findings on LA and California homelessness money recurred every year since 202201234520222023202420252026YearWaste or mismanagementFraud: convictedFraud: charged or pendingFactHub · Register entries
At least one oversight finding on homelessness money in every year from 2022 to 2026, from five different reviewers. Source: FactHub register of audit findings and fraud cases. View source chart

Common questions

“The State Auditor itself declined to call homelessness spending a high-risk problem.”

Short answer: True, but

In December 2025 the State Auditor did not add homelessness accountability to its high-risk list, though it recorded concern about the state homelessness council's implementation of legislative requirements. That is a judgment about statewide risk designation, not a finding that tracking works: its own 2024 audit found the state lacked current cost and outcome data.

“If they can't track the money, it must have been stolen.”

Short answer: No

None of these reports alleged fraud. Untraceable funds mean the records cannot show where money went, not that it was taken. The homelessness fraud cases prosecutors announced in 2026 involve about $10 million alleged or admitted diverted, a small fraction of the funding the audits examined.

“Every big government has audits like these; California is no worse than anywhere else.”

Short answer: Not tested

This check did not compare California or Los Angeles with other states or cities, and nothing here shows they are worse. The State Auditor found California's food-aid payment error rate close to the national average, a reminder that critical audits alone are not a comparison. The claim checked is only that audits here have repeatedly found tracking problems, which they have.

Conclusion

The claim holds up. In seven reports from January 2022 to May 2026, five independent reviewers reached versions of the same finding. HUD's inspector general found LAHSA let $3.5 million in federal grants expire unused and could not support $879,847 in costs. The City Controller found LAHSA's bed reservation system so unreliable that staff tracked beds through daily emails, and later estimated that one in four City-funded interim beds sat unused at a cost of about $218 million. The State Auditor found California lacked current information on the costs and outcomes of its homelessness programs. A court-appointed assessor found the city could not trace substantial funds and did not reconcile spending with its homelessness budget. And in May 2026 the County Auditor-Controller could not complete a full review because LAHSA could not produce complete financial statements, including a balance sheet. The reports differ in scope, and that matters for how far the claim reaches. They cover different programs, years and governments, and none measured whether homelessness spending as a whole was working. Their common thread is that the agencies could not show where all the money went or what it produced. The State Auditor's December 2025 high-risk report shows the limit of the case: it chose not to add homelessness accountability to its list of high-risk state issues, though it recorded concern about the state homelessness council's follow-through. Two things this check does not show. Weak tracking is not the same as theft: none of these reports alleged fraud, and the criminal cases brought in 2026 involve millions, not the billions the audits examined. And nothing here shows California or Los Angeles is worse than other places; the State Auditor found California's food-aid error rate close to the national average, a reminder that a run of critical audits is not by itself a comparison.

How we checked

  1. Defined the claim as whether independent reviewers have repeatedly found that Los Angeles or California could not track homelessness money or what it achieved.
  2. Collected audits and assessments of LAHSA, the City and County of Los Angeles, and California's homelessness programs from 2022 to 2026, and read each primary report or official summary.
  3. Recorded each finding in a FactHub register with its date, reviewer and dollar figure, and noted what each figure measures.
  4. Copied the key sentences verbatim from each report.
  5. Checked for evidence against the claim, including the State Auditor's decision not to list homelessness as high-risk.
  6. Separated tracking and accounting failures from allegations of fraud, which a companion check examines.

Editorial note: Scope: audits and assessments of homelessness money in the City and County of Los Angeles and the State of California, January 2022 to May 2026, selected as those FactHub could verify from the primary report or official summary. This check rates whether reviewers repeatedly found tracking and accounting gaps, not whether money was stolen or how California compares with other states. No external specialist review has been recorded.

Expert-review status

No external specialist review has been recorded.

Funding and conflicts

Funding: No external funding for this piece.

Ownership: FactHub is an independent fact-checking project.

Conflicts: No known conflicts of interest.

Sources

Sources are labeled by kind, with what this fact check takes from each, so readers can check the evidence independently.

  1. FactHub record FactHub. Audit findings and fraud cases involving Los Angeles and California public money, 2022-2026

    FactHub's register of audit findings and fraud cases, with saved counts by year and category.

    • The register has at least one oversight finding of waste or mismanagement of homelessness money in each year from 2022 to 2026.

    • The seven oversight findings come from five different reviewers: HUD's inspector general, the City Controller, the State Auditor, Alvarez & Marsal and the County Auditor-Controller.

    • Qualifies: The four homelessness fraud cases announced in September 2026 involve about $10 million alleged or admitted diverted.

  2. Government Los Angeles City Controller. Interim Housing audit (Dec. 5, 2023)

    The City Controller's audit of City-funded interim housing and LAHSA's bed tracking.

    Reliability: The city's independently elected auditor; the audit covered City-funded interim housing run through LAHSA.

    • LAHSA's bed reservation system was so unreliable that LAHSA tracked bed availability through daily census emails.

      What the source says
      is so unreliable that LAHSA relies on daily census emails to track bed availability, rather than the reservation system.
      Cover letter, key findings

    • The Controller said data problems made it next to impossible to know how many beds the city had available.

      What the source says
      These data quality issues make it next to impossible for the City to have an accurate picture of how many beds we actually have available
      Cover letter · Kenneth Mejia, Los Angeles City Controller
  3. Government Los Angeles City Controller. Pathways to Permanent Housing audit (December 2024)

    The City Controller's performance audit of LAHSA's and the city's record moving people from interim to permanent housing, FY2019-FY2023.

    Reliability: The city's independently elected auditor; the $218 million is an estimate of the cost of unused beds.

    • One in four City-funded interim housing beds went unused.

      What the source says
      1 in 4 City-funded interim housing beds went unused
      Key findings

    • The unused beds cost an estimated $218 million from FY2019 to FY2023.

      What the source says
      costing taxpayers an estimated $218 million
      Key findings

    • Fewer than one in five people in City-funded interim housing reached permanent housing.

      What the source says
      Less than 1 in 5 people in City-funded interim housing secured permanent housing.
      Key findings
  4. Other Alvarez & Marsal Public Sector Services, for the U.S. District Court. Independent Assessment of City-Funded Homelessness Assistance Programs (Dkt. 905, LA Alliance v. City of Los Angeles, May 14, 2025)

    Court-ordered financial and performance assessment of three City of Los Angeles homelessness programs, June 2020 to June 2024.

    Reliability: Consulting firm retained by U.S. District Judge David O. Carter; it describes its work as an assessment, not an audit, and relied on data produced by the city and LAHSA.

    • Insufficient financial accountability made it impossible to trace substantial funds allocated to the city programs.

      What the source says
      Insufficient financial accountability led to an inability to trace substantial funds allocated to the City Programs
      Executive Summary, Key Findings, p. 4

    • The city did not routinely reconcile actual spending with its Homeless Budget.

      What the source says
      Further, the City does not routinely reconcile actual spending to the Homeless Budget, complicating the ability manage costs and monitor spending.
      Executive Summary, Reconciliation of Spending, p. 7
  5. Government Los Angeles County Auditor-Controller. LAHSA Financial and Operational Process Review, Report B26003 (May 21, 2026)

    The county auditor's limited review of LAHSA's finances after late payments to service providers.

    Reliability: County auditor reviewing an agency the county co-funds; a limited review, not a full audit.

    • LAHSA could not provide complete financial statements and accounting records, including a balance sheet.

      What the source says
      LAHSA was unable to provide complete financial statements and accounting records, including a balance sheet
      Cover memo, p. 1
  6. Government HUD Office of Inspector General. LAHSA Did Not Always Administer Its Continuum of Care Program in Accordance With HUD Requirements (Report 2022-LA-1001, Jan. 20, 2022)

    Federal inspector general audit of LAHSA's Continuum of Care grants, as summarized on Oversight.gov.

    Reliability: Federal inspector general auditing a grantee of its own department; covers LAHSA's federal Continuum of Care grants only.

    • LAHSA did not fully meet its Continuum of Care program goals or always follow program requirements.

      What the source says
      The Authority did not fully meet the goals and objectives of the program and did not always follow program requirements.
      Report Description

    • LAHSA let $3.5 million in Continuum of Care grants expire unused.

      What the source says
      did not use $3.5 million in CoC grant awards and left the funds to expire
      Report Description
  7. Government California State Auditor. Homelessness in California: The State Must Do More to Assess the Cost-Effectiveness of Its Homelessness Programs (Report 2023-102.1, April 9, 2024)

    State audit of California's homelessness funding and the council meant to track it.

    Reliability: Independent state auditor reporting to the Legislature; the audit covered state programs and two other cities, not Los Angeles.

    • The state lacked current information on the costs and outcomes of its homelessness programs.

      What the source says
      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.
      Letter to the Governor and legislative leaders

    • After reporting data for 2018-19 through 2020-21, the council stopped tracking and reporting it.

      What the source says
      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.
      Letter to the Governor and legislative leaders
  8. Government California State Auditor. State High-Risk Audit Program (Report 2025-601, Dec. 11, 2025)

    The State Auditor's periodic report on high-risk state agencies and statewide issues.

    Reliability: Independent state auditor; the report designates high-risk issues under Government Code section 8546.5.

    • Qualifies: The auditor did not add homelessness accountability to its high-risk list but discussed concern about the state homelessness council.

      What the source says
      we explain why we did not include accountability over homelessness spending and program outcomes but discuss our concern with the California Interagency Council on Homelessness’s implementation of legislative requirements
      Introduction

    • Qualifies: California's CalFresh payment error rate is close to the national average.

      What the source says
      Although this PER is not an unusual rate for a large state and is close to the national average rate
      California Department of Social Services section
  9. FactHub dataset Audit findings and fraud cases involving Los Angeles and California public money, 2022-2026

    • Tables: findings

      Saved analysis findings-by-year

    • Tables: findings

      Saved analysis oversight-timeline

  10. FactHub chart la-homelessness-oversight-findings-chart

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  • Article la-homelessness-billions-fraud-claim — version 1 (published) cites version 1
  • Article la-homelessness-spending-vs-results — version 1 (published) cites version 1
  • Briefing la-homelessness-money-accountability — version 2 (published) cites version 1
  • Briefing la-homelessness-money-accountability — version 1 (published) cites version 1

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