The Brief

There’s 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 — all at taxpayers’ expense.

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.

But two observers who made separate visits to the location during that time — one of them a commissioner with the governing body that oversees the Los Angeles Homeless Services Authority, the other a “special master” appointed by a federal judge — found the site was operating at half capacity.

Still, LAHSA paid a nonprofit organization $2.3 million to operate the site — with 88 spots.

A federal judge this week described the situation as “obvious fraud.”

The nonprofit that runs the site, San Francisco-based Urban Alchemy, told LAist it reduced the site’s 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.

LAHSA records show Urban Alchemy was paid in full. Because of the reduced capacity at the site, the cost per person served there was about $63,900 for the year — or more than $5,300 each month, according to LAist’s review of records.

The nonprofit said it’s been operating and staffing the Safe Sleep campground according to the terms of its contract with LAHSA.

“We want to make abundantly clear that we have never misreported any data or invoices for reimbursement for the services provided at this site,” said Jess Montejano, a spokesperson for Urban Alchemy. “These issues are more a reflection of LAHSA’s disorganization and management.”

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’s unhoused residents.

Federal court scrutiny

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 "obvious fraud."

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.

The judge has been overseeing the settlement, specifically the city’s 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.

In April, when the city of L.A. submitted its quarterly bed report to Carter, it described the South L.A. campground program as having 88 beds.

But approximately half of those beds had been unavailable for about a year, according to Urban Alchemy.

According to testimony on Wednesday, Michele Martinez — the special master Carter appointed to help enforce the terms of the settlement — 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.

Three weeks later, the city responded by questioning whether Martinez’s inquiry was proper.

In a June 30 email, L.A. Deputy City Attorney Jessica Mariani argued that Martinez had “no authority or basis to review or provide any assessments.” However, Mariani added, the city was still looking into Martinez’ questions about the safe sleep site.

The city later adjusted the count to 46 spots in its July 2025 update to the court.

Carter questioned Mariani during Wednesday's 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.

"Is the City's position when the Special Master notes obvious fraud and that the documents don'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?” the judge said, according to a transcript of the proceedings.

Carter described the city’s actions as potentially “contemptuous.”

LAist reached out to Mariani and the City Attorney’s Office, but has not yet received a response.

Weeks before the special master’s 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.

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 “low-cost, high-impact” program serving 88 people.

“We at LAHSA must ensure that we receive what we are contracting for,” Szlasa wrote in a social media post describing his findings.

He filed a public records request with LAHSA to obtain the contracts and payment details for the Urban Alchemy site in South L.A.

“I want to understand, first and foremost, why this was misrepresented to the Commission,” Szlasa said. “Then I want to understand if Urban Alchemy was actually in compliance with the contracts.”

He continued: “I am concerned this Safe Sleep program — which I happened to arbitrarily spot-check — is not an outlier.”

A drone's view of the South LA site prior to one section closing down in 2024.

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Jay L. Clendenin

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Los Angeles Times via Getty Images

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LAHSA and Urban Alchemy responses

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.

LAHSA authorities said the site had a 41% average “utilization rate” during the budget year that ended in June. They said that's based on capacity and occupancy information Urban Alchemy provided in a database called the Homeless Management Information System.

But the agency’s calculations appear to have been based on outdated capacity data, not on how many spaces were actually available for use.

LAHSA said it was Urban Alchemy’s responsibility to update the information in the database.

"All providers are required to record their data in [the database]; if the data is inaccurate, it would be based on that data entry,” a LAHSA spokesperson said.

Urban Alchemy said LAHSA is to blame.

“We will not be a patsy or let our integrity be attacked because of the decisions made by and directed to us by LAHSA,” Montejano told LAist Thursday. “We are also extremely frustrated with the lack of communication, transparency, and bureaucracy here.”

The nonprofit told LAist it 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.

LAHSA instructed Urban Alchemy to stop accepting any new clients to set up camp in the east half of the campground — one of two parking lots — in March 2024, according to emails reviewed by LAist. In one email, LAHSA staff told a senior leader at the nonprofit that the push to close down a portion of the site came from the L.A. city administrative officer.

LAist has reached out to LAHSA and the city administrative officer with questions about those instructions, but has not received responses.

An agency spokesperson said LAHSA has been “engaged with” Urban Alchemy about the site since April 2024, and that the program has been “under review.”

Property records show a South L.A. nonprofit called the Coalition for Responsible Community Development purchased the property where the tent camp operates in 2020. It has plans to convert the larger 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.

“When the site first opened, beds were consistently full,” Angelina Valencia-Dumarot, Price’s communications director, told LAist Thursday. “That’s why the current occupancy rate is especially concerning.”

She said council offices are too often left out of updates by LAHSA.

“We can’t address problems quickly if we’re finding out only after numbers fall or from the press,” Valencia-Dumarot said.

A sign at the South LA campground

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Jay L. Clendenin

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Los Angeles Times via Getty Images

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LAHSA manages more than $742 million in contracts with 121 service providers.

Over the past year, audits and reports 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.

The South L.A. campground is the only “safe sleep” site of its kind currently in LAHSA’s portfolio, the agency told LAist. LAHSA also administers funding for about a dozen “safe parking” sites, where unhoused people can legally park and live out of vehicles they own.

LAHSA has paid Urban Alchemy more than $12 million to operate the Lincoln Safe Sleep Village since 2021, according to the agency’s records.

What should this cost? 

At full capacity, the monthly operating cost for the South L.A. campground would have been about $2,180 per participant each month — instead of $5,300.

Shayla Myers, a senior attorney with the Legal Aid Foundation of Los Angeles, said these campground sites are expensive to operate.

“They are the kinds of programs that shock the conscience of taxpayers,” Myers said, adding that they cost much more than paying rent, while keeping people unsheltered.

LAHSA staff say per-person costs for homeless programs differ based on location, hours and staffing needs.

Examples include:

• The region’s 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. 

• LAHSA programs that provide temporary rental assistance to families and cost about $2,000 per household per month, officials said. 

• The city of L.A.’s 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’s chief administrative officer.

Urban Alchemy has operated temporary campgrounds for unhoused people in the city and county of L.A. since 2021, including one in Virgil Village that has since closed and another in Culver City that is still operating.

In 2021, L.A.’s city administrative officer reported the Virgil Village campground cost more than $2,600 per participant per month.

Culver City opened its campground 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 budget documents.

The Culver City site has space for 40 people, and the city says the occupancy rate is around 85% this year. That’s a cost of more than $11,000 per person served each month.

Myers said interventions like this will always cost more than moving people into homes.

“It doesn’t matter whether you're paying for a hotel room, a shelter, or in this case, lines drawn on a parking lot,” said Myers. “Continuing to provide shelter to folks who are unhoused — rather than providing permanent housing — is always going to be exponentially more expensive.”

After the city finalized its budget in June, LAHSA allocated $1.2 million — instead of $2.3 million — to Urban Alchemy for the South L.A. campground for the current budget year.

LAHSA now lists the site’s capacity as 46 tent spaces, authorities said. The agency said the site now has a “utilization” rate of 70%, compared to 41% the previous fiscal year.

That’s at a cost of about $3,100 per participant per month.

LAist's Nick Gerda and Makenna Sievertson contributed to this story.

A news helicopter crashed in a Los Angeles neighborhood on Tuesday and burst into flames, killing at least three people near the scene of where an SUV had slammed into a city bus, officials said.

The helicopter crashed around 7 p.m. near a one-story commercial building in the neighborhood of Chatsworth in the San Fernando Valley, as news crews were covering the bus crash that left at least two people dead and six others injured, according the Los Angeles Fire Department.

An NBC4 Los Angeles anchor at the station confirmed during a live broadcast that its chopper went down just before 7 p.m.

At least one person killed in the helicopter crash was outside in the parking lot next to the commercial building, Capt. Branden Silverman, a spokesperson for the Los Angeles Fire Department, said during a news conference. It was unclear if the other two who were killed were on the ground or inside the aircraft.

The scene of a deadly helicopter crash in Chatsworth broadcast be CBSLA.

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Courtesy CBSLA

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One person was taken to the hospital, but their condition was not immediately clear.

“We’re trying to determine how many patients were inside the helicopter,” said Silverman, who described the helicopter as “pretty well destroyed” and adding that officials would be sorting through the rubble to see how many victims were on board.

At least four cars and two storage containers on the ground burned after the helicopter caught fire, which was quickly put out, according to officials. More than 50 firefighters responded to the helicopter crash, according to the fire department.null

Police and LA Metro investigate the scene of a crash between an SUV and a LA Metro Bus that left three people dead on Tuesday in Chatsworth.

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Ronaldo Bolanos

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Los Angeles Times via Getty Images

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About two hours before the crash, an SUV slammed into the middle of a city bus, killing at least two people and injuring six others. Photos and videos online showed half of the SUV lodged into the side of an MTA bus.

The helicopter crashed about a mile and a half from the bus crash.

The National Transportation Safety Board and the Federal Aviation Administration said it will be investigating the cause of the helicopter crash.

This is a developing story.

The Los Angeles region’s lead homelessness agency is effectively forfeiting the federal administrative roles it has held for decades, including applying for millions of dollars in funding for the region and leading the annual homeless count, the agency announced Tuesday.

The decision comes as the Los Angeles Homeless Services Authority faces mounting criticism from both the Trump administration and local leaders who accuse the agency of mismanaging homeless services.

It reverses a monthslong legal battle LAHSA had been waging with the federal government to continue in these duties.

The city of Los Angeles, L.A. County and other entities and organizations are now applying to take them over.

At a county meeting Tuesday, Supervisor Lindsey Horvath called it “a fundamental change that reflects the significant performance, contracting and financial concerns that have plagued LAHSA for too long.”

“ Officials avoiding accountability will no longer have LAHSA to hide behind, and the county and city must be accountable to each other and to our entire Los Angeles region,” Horvath continued.

LAHSA's decision

In June, the U.S. Department of Housing and Urban Development suspended LAHSA from conducting its federal duties, including applying for or receiving grants, putting $241 million in anticipated funding and LAHSA’s future in limbo.

LAHSA sued.

U.S. District Judge David O. Carter paused LAHSA’s suspension on Aug. 13, but also instructed a regional planning body known as the L.A. Continuum of Care Board to solicit applications from other entities to replace LAHSA in those key roles.

The Continuum of Care Board opened its application process online last week, inviting qualified organizations to take on one or more of LAHSA’s current administrative roles.

LAHSA’s governing commission voted unanimously Tuesday to not apply, effectively forfeiting the federal roles that comprise most of its remaining responsibilities.

The city of L.A. and L.A. County are both applying, according to LAHSA.

“With both the City and County preparing their own applications, competing against our founding partners would only fracture regional collaboration during an already complex time,” the LAHSA Commission and the agency's leadership said in a statement.

“This decision reflects the shared judgment of LAHSA’s Commission and executive leadership,” the statement continued.

Federal roles

LAHSA will forfeit the following federal homelessness roles:

1. Coordinating and submitting annual federal homeless assistance funding applications to HUD on behalf of the entire L.A. region — about $240 million in the coming year.

2. Planning, executing and reporting the region’s annual point-in-time homeless count.

3. Operating and administering a HUD-mandated database that tracks who's being served and whether they're moving into housing.

4. Managing and operating a HUD-mandated system to match unhoused people to available housing and services based on need.

How we got here

After Carter paused LAHSA’s suspension, the federal housing agency appealed the decision to the Ninth Circuit Court of Appeals. Last week, the appeals court issued a temporary stay on Carter's order.

LAHSA said that ruling created more uncertainty about whether the agency was eligible to apply for the federal roles it has held for the past three decades.

“Stepping aside now supports alignment with the direction the City and County are heading with their applications, and focuses public resources where they belong: on the people who depend on the rehousing system every day,” the LAHSA statement said.

LAHSA is a joint powers authority between the city and county, created three decades ago to manage the region’s response to homelessness.

City and county officials are collectively responsible for LAHSA, which has administered federal, state, county and city homelessness funding across the region.

Citing LAHSA’s management problems, L.A. County pulled more than $300 million annual homelessness funding from the agency starting this year, choosing instead to administer the funds through a new county homelessness department.

The city of L.A. is considering a similar move away from LAHSA. Mayor Karen Bass and her election rival Councilmember Nithya Raman both say the city needs its own independent homeless system.

In the current budget year, 73% of LAHSA’s nearly $500 million budget comes from the city of L.A., 20% from the federal government and 4% from L.A. County.

What’s next? 

LAHSA said it will continue to fulfill its ongoing federal responsibilities “until those duties transition to a new entity or entities.”

The agency has agreements with the city of L.A. to manage programs and contracts through June 30, 2027.

The county’s Department of Homeless Services and Housing is applying to take over all four of LAHSA’s federal responsibilities, according to county officials. The city of L.A. is currently applying for at least two of those roles, putting the city and county in competition with each other.

“Moving forward, another entity will be leading the [Continuum of Care], which I believe should be the county, given our ability to most effectively administer contracts for our region,” Horvath said Tuesday.

Other organizations have also expressed interest. Better Angels, a homelessness nonprofit led by former L.A. mayoral candidate Adam Miller, contacted the court seeking to apply.

Applicants looking to take over LAHSA’s federal roles have until Sept. 25 to submit applications, but had to communicate their intent to apply by Sept. 15.

The applicants selected by L.A.’s regional Continuum of Care Board will have to be reviewed by HUD and the federal court.

The Los Angeles Unified School District’s falling enrollment and budget challenges are fueling conversations planned for later this year about potential school closures and consolidation.

“Our goal is not simply to have fewer schools; our goal is to have stronger schools, schools that are better resourced, schools that offer more programs for our students,” Superintendent Andrés Chait said during a school board meeting Tuesday. The superintendent shared a similar message in a video sent to families Monday.

LAUSD is spending more money than it brings in and has relied on reserves to fill the gap in recent years. In Tuesday’s meeting, district leaders presented an updated snapshot of LAUSD’s finances that shows steeper enrollment declines and lower state revenue and reserves than projected early this summer.

“That deficit spending is only possible while we have reserves and the very significant challenge that we’re facing as a district is that those reserves are being depleted very quickly,” said Saman Bravo-Karimi, the district's chief financial officer. “They’re eventually going to go negative and we can’t have negative balances as a school district.”

How is enrollment changing? 

Almost 4% fewer students are attending LAUSD schools this academic year compared to last year, according to preliminary data — nearly a percentage point lower than expected.

Bravo-Karimi said that each 1% drop in enrollment is a loss of about $20 million a year for the next three years because California funds schools based on how many students show up to class each day.

Fewer students have attended LAUSD schools over the last two decades, in part because of falling birth rates and the region’s high cost of living, but those declines were steeper than anticipated in recent years.

Board member Kelly Gonez said the schools in East San Fernando Valley communities targeted by federal agents have double the enrollment declines of other campuses.

“That increase in enrollment decline last school year was not a coincidence,” Gonez said. “Something changed … that is the presence of a federal administration that is attacking our immigrant communities.”

How is LAUSD approaching school closures?

The district pulled a scheduled vote Monday night on a $960,000 contract with a school closure consultant.

The district planned to work with Alvarez and Marsal to develop a framework for possible school closures, mergers or reconfigurations.

The firm’s priorities, as described on their website, include “maximizing investment value in education” and reshaping how institutions operate.

Alvarez and Marsal are also associated with several controversial decisions, including closing more than a dozen campuses during an overhaul of St. Louis schools in 2003 and faltering when contracted to restructure New York City schools' bus routes in 2007.

Several members of the public and a leader in the district’s teachers union spoke out against the contract and any similar future consultants.

“It’s hard for us to seriously work with this district to fight for more state funding when you squander limited funds you have on contracts with vultures and privatizers like the Alvarez company,” said Julie Van Winkle, United Teachers Los Angeles vice president.

Chait said the decision to remove the contract from consideration was in response to messages from school, community and district stakeholders over the weekend.

“One of the core leadership principles that I’ve always really tried to live by is to listen to folks, especially when they disagree,” Chait said.

Chait said the district needs external support to convene community meetings and compile and analyze data.

“This is arguably the most complex, the most difficult endeavor we will ever take on,” Chait said of school consolidations. “It will reset the footprint of our district for years to come.”

Chait said the district will begin holding community conversations related to school closures in the next few weeks and will share more details during a Sept. 22 meeting.

How did LAUSD’s budget become so strained?

The district’s current $20.6 billion budget projects a $2 billion deficit.

LAUSD approved raises for teachers, principals and support staff earlier this year at the cost of an additional $1 billion this school year. LAUSD, like other districts in the state, also faces increased costs for employee health care, settlements for decades-old sexual assault claims and services for students with disabilities,

L.A. County education officials approved the district’s most recent budget Tuesday on the condition that LAUSD provide additional information about how it is implementing cuts this school year.

However, L.A. County Superintendent Debra Duardo also called out the district's “unsustainable” use of reserves.

“The district’s fiscal status necessitates continued monitoring for both immediate and future corrective actions,” Duardo wrote in a letter to district leadership, referencing the July appointment of a fiscal expert to advise the district.

LAUSD’s board has approved a series of plans to reduce spending and increase revenue. For example, the district eliminated hundreds of jobs, primarily in its administrative offices, earlier this year.

The district’s most recent fiscal stabilization plan includes furlough days for all employees, the elimination of thousands of jobs and cuts to programs that help high-needs schools pay for counselors, tutors and other student supports.

Most of these cuts aren’t scheduled to go into effect until the 2027-28 and 2028-29 school years.

The leader of a congressional panel warned Tuesday he would use “every tool” to get Los Angeles Mayor Karen Bass to testify after she skipped a hearing that put L.A.’s homeless services system in the hot seat.

It came as multiple audits, reviews and court rulings have found L.A. has failed to ensure proper tracking of large-scale spending on homeless services — particularly through the joint city-county L.A. Homeless Services Authority, known as LAHSA. Much of the money is federal dollars authorized by Congress.

Bass had declined to testify at Tuesday’s hearing, saying she was unavailable and that it would be a “politically motivated” attack. Her public schedule showed she planned to attend a groundbreaking of a shopping and community center in the Pacific Palisades two hours after the hearing was set to start.

Rep. Tim Burchett, the Tennessee Republican who chairs the House Oversight Committee's DOGE subcommittee, said she won't get off that easily.

Bass "seems intent on evading accountability, but she knows we will not let her off the hook," Burchett said at the hearing. He added that he and the Oversight Committee’s chair would "use every tool at our disposal to secure her appearance if she does not cooperate.”

House committees and subcommittees can issue subpoenas to compel witnesses to testify or provide documents.

Just before the hearing got underway, Bass called it "the latest attack on Los Angeles by the Trump Administration and his allies in Congress.”

"I don't run LAHSA," she said, adding that she was the first mayor to sit on its board and that street homelessness has dropped since she took office. The latest official count for the city showed a 8% year to year jump in street homelessness.

Bass stepped off LAHSA’s governing commission last week, after LAist reported she had missed most of its meetings since she appointed herself to it in 2023. The mayor cited “time and all” as her reason for stepping down. She continues to appoint — and has the power to remove — half the commission’s members, including its current chair.

What happened at the hearing

Much of the hour-and-a-half hearing focused on Republican members’ criticism that Democrat-led cities distribute drug paraphernalia and don’t require unhoused people with addictions to get treatment as a condition of living in publicly funded housing.

Some proposals raised Tuesday would change how money reaches Los Angeles.

Burchett said he will introduce the Recovery First Housing Act, to require federally funded housing to offer substance abuse treatment. He has also introduced a bill restricting federal housing dollars to only support U.S. citizens.

LA's fights on a national stage

Burchett noted LAHSA’s audit committee chair, Justin Szlasa — who was proactive in rooting out wasteful spending — was demoted by Stephanie Graves, a Bass appointee who has declined to give her reason for doing so. The move was first reported by LAist.

Burchett also made claims that don’t hold up. He said 50,000 people are homeless in the city with "another 75,000" in the surrounding county. The latest official count found a total of 73,000 unhoused people across L.A. County — a figure that includes the city.

Burchett also said, “ LAHSA recently doled out funds to an L.A.-area nonprofit whose CEO had just been indicted for fraud.” LAist recently investigated LAHSA’s awarding of funds to that nonprofit, Abundant Blessings, and found no indication that LAHSA awarded it any funds after the fraud indictment. However, the review did find that long before the indictment, LAHSA kept awarding millions in contracts to the group even after it was flagged internally as high-risk for failing to do its job.

Burchett, however, was correct in saying “a court-ordered independent assessment of LAHSA's finances found alarming financial control weaknesses that leave the door open to rampant fraud.”