The Brief

For the record: We have updated the headline of this article to better reflect what happened to displaced participants in the HOPICS rapid rehousing program. We use the terms “eviction” and “evicted” in the article and a Dec. 12, 2023 newsletter based on the common understanding of the word. However, HOPICS’ middlemen were those legally evicted. The clients were displaced from their homes as a result of the evictions. We regret if that was not clear to readers. 

HOPICS used middlemen to help facilitate the program. The middlemen rented from property owners, becoming the property owners’ tenants. The middlemen then subleased to HOPICS participants. HOPICS subsidized participants’ rent through payment to the middlemen, who were then to pay property owners. As the article describes, when rent was not paid on a timely basis, property owners began eviction proceedings against middlemen. Participants then faced imminent displacement, which we refer to as “eviction.” Legal eviction proceedings were against the middlemen, not the HOPICS clients. As the article also describes, HOPICS arranged for new permanent housing or shelters for most of the tenants facing imminent displacement, however HOPICS could not account for dozens more.

Jesus Mares got a lifeline during the COVID-19 pandemic. Thanks to rental support from one of Los Angeles’ leading homelessness agencies, he had a roof over his head.

He had been bouncing between sleeping in his car and hotel rooms. The taxpayer-subsidized room in a South L.A. duplex provided stability until he could get back on his feet, he’d hoped.

It went well for a while, he said. Then Mares quickly noticed things were amiss with the nonprofit, known as HOPICS. He went through several case managers who Mares said didn’t come to see him.

Then came the eviction notice. HOPICS, which has received about $140 million in Los Angeles city, county, state and federal funding over the last three years for a program known as rapid re-housing, was months behind on paying his rent, according to Mares and his former landlord.

“They basically told us to get out of the building and they locked the building up,” Mares said.

All together 306 people lost taxpayer-funded homes in South Los Angeles as a result of HOPICS’ failure to pay rent on time, the nonprofit said. While more than half were then placed in permanent housing or sent to temporary sites, HOPICS and Los Angeles housing authorities did not say what happened to 119 people.

A CalMatters review of the program, based on hundreds of pages of documents and dozens of interviews, shows that the prominent Los Angeles nonprofit repeatedly ignored explicit eviction warnings from some landlords, did little to vet the middlemen it entrusted to execute the program, and took on far more clients than its case managers could serve.

CalMatters interviewed three participants who landlords said were evicted from HOPICS-funded houses, and they reported ending up back on the streets or living in their cars.

Brenda Wyatt outside of her temporary housing location in Los Angeles on Oct. 4, 2023.

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The eviction mess underscores weaknesses in California’s strategy for addressing its biggest crisis, homelessness. Gov. Gavin Newsom’s administration has allocated more than $20 billion to fight homelessness, but the state’s homeless population surpassed 170,000 people in 2022. Like HOPICS, many government-funded services provide only temporary housing, depend on too few case workers and must compete for units in an already-tight rental market.

Leaders of the nonprofit, whose formal name is Homeless Outreach Program Integrated Care System, say they were overwhelmed by the sudden influx of emergency COVID money during the pandemic to run what’s known as rapid re-housing, a popular local rental assistance program.

To execute the program, HOPICS used middlemen – many of which were newly created nonprofits – to rent out rooms to the unhoused. However, HOPICS’ leaders often didn’t pay those brokers on time, they say, because they needed to review and approve rent bills sent by the very landlords they had chosen to work with. Some of the invoices, they say, had questionable charges.

“We didn’t have the habit of Google searching everybody’s names, and probably that’s a simple fix,” said HOPICS deputy director and former U.S. Rep. Katie Hill. “This is a lot of money that has gone towards a program that has shown that it can house a lot of people. It’s not perfect in any way, shape, or form, and it’s evolving, and we’re learning as we go.”

The federal government sent $100 million in emergency aid to Los Angeles County to address the homelessness crisis during the pandemic, along with another $220 million to six cities in the region including L.A. The Los Angeles Homeless Services Authority then turned to organizations like HOPICS, which is a division of a larger LA nonprofit, Special Service for Groups, to carry out the programs. Between 2019 and 2023, HOPICS placed 3,100 homeless people into permanent housing through rapid rehousing programs, according to the nonprofit.

Annual revenues at Special Service for Groups surged from $84 million in 2018 before the pandemic to $149.1 million in 2022. It also gets rapid re-housing funding from Measure H, the 2017 Los Angeles County sales tax and a mix of federal, state and city funds.

While the rush of COVID funding has ended, HOPICS continues to deal with the fallout of the evictions. It still hasn’t paid all of the rent the landlords claim they are owed, it acknowledges. And, separately, three Los Angeles motels sued HOPICS and its parent late last year, alleging it stopped paying rent for clients who were living at the motels. The nonprofit settled the case early this year, though the terms weren’t disclosed.

HOPICS Director Veronica Lewis said her organization can be late with payments because of its efforts to verify that its clients are actually living in the units.

“The notion that we just don’t pay, it’s just absurd,” she said. “We want to be good stewards of public funds.”

CalMatters sent the Los Angeles homeless authority questions about how it funds and oversees HOPICS. The homeless services agency’s spokesperson issued a statement that didn’t answer several questions, including how many clients got into rapid rehousing programs as a result of pandemic funding and how many have returned to homelessness after leaving rapid rehousing programs. The agency also did not comment on whether it’s a common practice for homeless services nonprofits to pay rent late.

The authority’s “role is to ensure service providers receive the funds necessary to bring our unhoused neighbors home … ensure the program is performing efficiently, and work with the provider to identify any performance concerns,” the spokesperson said.

“It’s about time somebody stepped up and exposed what HOPICS is doing,” said Demario Swait, a 59-year-old who was evicted. The nonprofit gets a grant “to make sure that people are housed, and people are not being housed. And I’m one of them.”

Swait and Mares said they are still trying to pick up the pieces from the HOPICS evictions. Swait is now in temporary housing with a different agency, looking for permanent housing, he said.

Demario Swait at Leimert Park in Los Angeles on Sept. 28, 2023. Photo by Adriana Heldiz, CalMatters

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Mares packed his things and went back to living in his car, he said. “Right now, I’m at my family’s house trying to get it together, trying to find a new spot.”

Why HOPICS turned to middlemen

A Vietnam veteran who had slept on Skid Row founded HOPICS in the 1980s as a one-man operation working to find housing and services for homeless people.

Today it’s one of the county’s largest homeless services organizations with a contract from the L.A. Homeless Services Authority to coordinate shelter placements and other services in South L.A. To lead the organization, Lewis was paid $261,000 last year, according to the organization’s tax records. She also sits on the state council on homelessness, which Gov. Newsom has charged with developing policies to prevent and end homelessness in California.

HOPICS is supposed to help unhoused people find a place to live, pay a portion of the rent for up to two years and provide a wide range of social services, like employment training and assistance applying for public benefits, according to its contract with Los Angeles County.

Ideally, clients gradually contribute more toward rent until they’re able to stay housed on their own, according to the Los Angeles County Homeless Services Authority.

Landlords are often reluctant to rent their properties to people receiving government rental assistance, whether due to bias or an aversion to red tape.

Property owners who wanted to help house the homeless “don’t necessarily want to be landlords to our population,” Lewis said, and many didn’t want to handle multiple leases for clients sharing one house.

So, instead, HOPICS turned to middlemen. These brokers would rent properties and then sublease rooms in those properties to participants.

Housing 1BY1 Co-Founders Dejon Dixon and Norris Jones in Los Angeles on Sept. 28, 2023. Dixon and Jones say a Los Angeles-based nonprofit owes them hundreds of thousands of dollars in unpaid rent for formerly homeless people.

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CalMatters interviewed five brokers who got into business with HOPICS by renting homes from a large property management group called Ocean Properties, Inc. Ocean Properties describes itself as a development company that flips “small inadequate homes” into larger duplexes. It sells the multi-unit houses to investors and often remains as property manager, renting out more than 2,000 affordable housing units across South L.A.

HOPICS does not lease houses from Ocean Properties directly.

Instead, it goes through people like Norris Jones. He created the nonprofit Housing 1By1 in August 2020, to help with Los Angeles’ housing and homelessness crisis, he said. A month later he welcomed his first HOPICS tenant. Jones and his partner, Dejon Dixon, sublet more than a dozen units, housing more than 80 people for about $950 a month for a private room. They charged $2,800 as a security deposit, according to several signed lease agreements.

Jones and three other brokers said HOPICS would go months without paying rent, causing them to fall behind on paying the property owners. As a result, he says he owes Ocean Properties more than $200,000 in rent and fees. He said he doesn’t understand how a company getting paid by the government “got us in a position where we can’t pay the rent for the people they house in our homes.”

HOPICS officials say Jones has overstated how much it owes him and, in some cases, said he’s submitted invoices far too late to get reimbursed. Still, in a February email to Jones, HOPICS acknowledged owing him $135,000 for 2022 and “upwards of $90k” for 2023.

Now, Jones said HOPICS has paid him some of the unpaid rent. He’s in talks to settle with the agency over the rest of the money he says he’s owed.

“I spent all my money to do this,” Jones said.

In the rush of new funding, HOPICS acknowledged it went into business with some brokers without doing so much as a Google search. For instance, the agency leased 24 locations from Donye Mitchell of LA Supportive Housing. CalMatters found that Mitchell left federal prison in 2014 after serving a sentence for defrauding California’s Employment Development Department.

A property owner in June filed a lawsuit against Mitchell and his business partner in Los Angeles Superior Court, alleging they owe more than $77,000 in back rent for a site his nonprofit used to house homeless people, court records show. Neither party has responded to the suit.

One of several properties managed by Norris Jones and Dejon Dixon, co-founders of Housing 1BY1, in Los Angeles on Sept. 28, 2023. Photo by Adriana Heldiz, CalMatters

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Mitchell did not respond to voice messages left with his business partner or emails from CalMatters for this story.

HOPICS officials said some landlords shuffled residents around the units against program rules, and failed to tell the agency about impending evictions until the last minute.

Herbert Hatanaka, executive director of Special Service for Groups, Inc., is personally investigating some of the claims from the brokers.

“There’s missing information,” he said. “We have evidence, for example, clear evidence that there were individuals that were not living in some of those facilities for the time that (the landlords are) billing us for. ”

Overwhelmed L.A. homeless caseworkers

Vetting and paying rent invoices wasn’t the only holdup for HOPICS clients. A persistent shortage of caseworkers contributed as well, former employees told CalMatters.

To have rent paid, rapid rehousing clients must meet with their case managers at least once a month. HOPICS tenants, landlords and former employees told CalMatters that just didn’t happen.

One employee said the agency was badly understaffed because of high turnover and unable to keep up with the number of tenants it was supposed to serve. Los Angeles County requires each case manager to work with up to 25 clients.

“When I signed my acceptance letter, it was for 20 clients, and within 30 days, I had 60,” said Neal Glasgow, a former caseworker for HOPICS who said he left in 2022 after about a year. “I was playing catch-up every month.”

The caseworkers verify that tenants are still living in the units, set tenants’ rent contributions and connect tenants with services.

Glasgow said landlords called him so often about unpaid invoices that some of them became his friends. HOPICS’ leaders acknowledged they didn’t meet the caseworker ratio, citing understaffing in the social services industry.

Several former tenants said they went months without contact from a caseworker, leaving them feeling stranded in temporary placements. Brokers who visited the homes also said their tenants didn’t receive visits from case workers and complained that instead of getting help to become financially stable or get treatment, the clients languished in the houses, sometimes using drugs and having mental breakdowns.

In Los Angeles Superior Court claims, three tenants have said they’d seen 15 or 20 different caseworkers in the two years they were allotted in the rapid rehousing program and still hadn’t gotten permanent housing. A judge ruled in May and June that the agency did not owe them any money for emotional distress and dismissed the case.

The current rapid rehousing system of cost-sharing rent for a couple of years doesn’t make sense to some of the people who once ran it.

“It’s setting (the unhoused) up for failure,” Glasgow said. “You put them in a room that they can’t afford and after the program, they’re gonna end up back homeless, and that’s a lot of money wasted.”

HOPICS officials say they now lease some houses directly from property owners. That practice, known as master-leasing, is a strategy agencies including the L.A. Homeless Services Agency, are increasingly considering.

“It’s basically eliminating that middleman that has too much opportunity for problems,” said Hill, the HOPICS deputy director.

An eviction letter posted in one of the residences where Vincent Osby housed formerly homeless people in Los Angeles on Sept. 28, 2023.

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But they also still house clients in units run by brokers. The nonprofit’s officials said they’re doing more to vet landlords before placing clients in their units, including requiring all future and current landlords to sign stricter, clearer program requirements and asking for references.

“We’re asking more questions now,” Lewis said.

Brenda Wyatt, 58, was kicked out of her room on Sept. 4, she said. Her landlord, Vincent Osby, hadn’t been paying the property owner. He confirmed he couldn’t keep up with the rent but declined further comment.

Osby, who played two seasons of professional football for the San Diego Chargers in the 1980s, leased more than a dozen units to HOPICS clients, HOPICS officials said.

The landlord moved Wyatt to another shared house after he fell behind on rent. She said it was unclear whether HOPICS or Osby was at fault for the late rent payments.

“I don’t know what the hell is going on, excuse my French,” Wyatt said. “That leaves us in limbo. We don’t know what to do. We worry about getting kicked back out on the streets.”

California students are likely to see fewer cell phones and more gender-neutral bathrooms next year as new state education laws go into effect.

Protecting students from immigration raids was a priority for state legislators this year, resulting in several new laws, including one prohibiting school staff from allowing immigration officers to enter campuses or providing student or family information.

The most controversial of the new laws is one meant to target antisemitism, although amendments made during the legislative session resulted in a bill that defines discrimination more broadly.

New Office of Civil Rights to open

Assembly Bill 715 establishes a state Office of Civil Rights to help school districts identify and prevent discrimination based on antisemitism, gender, religious and LGBTQ status. It will also handle questions and complaints.

The legislation, along with Senate Bill 48, creates four positions to track and report discrimination. These positions will be appointed by the governor and confirmed by the Senate after Jan. 1.

“California is taking action to confront hate in all forms,” said Gov. Gavin Newsom in a statement. “At a time when antisemitism and bigotry are rising nationwide and globally, these laws make clear: our schools must be places of learning, not hate.”

The legislation has been controversial, with some organizations saying it infringes on academic freedom and prioritizes the rights of certain students over others. The California Teachers Association and California Faculty Association have said the legislation could result in the censoring of educators.

Parents can’t be jailed for truant kids

Beginning Jan. 1, parents of chronically truant children will no longer be fined or face jail time.

Assembly Bill 461 amends the state’s Penal Code to remove a section that makes it a criminal offense for a parent to have a child who is chronically truant, which is defined as missing school without a valid excuse for 10% or more of the school year.

California law requires students age 6 to 18 to attend school.

The Penal Code called for a fine of up to $2,000 or up to a year in jail for parents whose children habitually missed school.

“Criminalizing parents for their children′s truancy ignores the root causes of absenteeism and only deepens family hardships, especially as many immigrant families now fear sending their children to school,” said Assemblymember Patrick Ahrens, D-Sunnyvale, in a statement. “(This bill) ensures support and resources to keep students in school and on track for success.”

Gender-neutral bathroom required

Beginning on July 1, all California school campuses, except those that have only one bathroom for male students and one bathroom for female students, are required to have a gender-neutral bathroom.

Senate Bill 760, which was signed by the governor in 2023, requires that posted signs identify the designated bathroom as being open to all genders and that it be kept unlocked and available to all students.

“SB 760 is a measure that aims to create a safe and inclusive environment not only for non-binary students, but to all students, by requiring each public school to establish at least one all-gender restroom,” said former Sen. Josh Newman, author of the bill.

Cellphone use to be limited

School districts, county offices of education, and charter schools have until July 1 to adopt a policy limiting the use of cellphones during school hours.

Assembly Bill 3216, renamed the Phone-Free School Act, was approved in an effort to curb classroom distractions, bullying, and addiction to the devices. At least five other states, Florida, Indiana, Louisiana, South Carolina and Ohio, have similar laws.

Last year, Gov. Gavin Newsom sent a letter to school district leaders urging them to restrict cellphones. Excessive smartphone use increases anxiety, depression and other mental health issues in children, he said. 

Shielding schools from immigration raids

Protecting students from immigration raids was a priority for legislators this year, resulting in several pieces of new legislation.

Assembly Bill 49, known as the California Safe Haven Schools Act, was passed amid a series of immigration raids that have resulted in the arrest of thousands of people. It went into effect as an urgency measure in September.

The bill prohibits school staff from allowing immigration enforcement officers on school campuses or sharing student or family information with them without a warrant or court order. School districts have until March 1 to update school policies to align with the law.

Senate Bill 98, also effective in September, requires leaders of school districts, charter schools, universities and colleges to notify staff and parents when immigration officers are on a campus. School safety plans should include an official procedure for making these notifications by March 1.

This bill, which is in effect until Jan. 1, 2031, does not prevent governing boards from establishing stronger standards or protections.

Protecting preschools, preparing families

Assembly Bill 495, known as the Family Preparedness Plan Act, expands the pool of relatives that can be authorized to make decisions and care for children if parents are detained by immigration authorities or deported.

Beginning Jan. 1, all adults related to a child by blood or adoption, within five generations, could be authorized to enroll a child in school or make decisions about their medical care while on campus.

The bill also permits courts to appoint a person, nominated by a parent, to have joint custody of a child if they are detained or deported by immigration officials.

It also requires school districts to provide information to parents and guardians regarding the right of children to have a free public education.

The legislation also extends the requirements of AB 49 to child care facilities and preschools, prohibiting staff from collecting information or documents regarding the immigration status of children or their family. Instead, they are required to report requests for this information to the California Department of Education and the state Attorney General’s Office.

Easing the road to college

This year, California high school students will find it easier to be admitted to a California State University campus.

Senate Bill 640 establishes a direct admission program that sends mailers to high school students who are eligible to attend participating campuses, informing them of that status. Qualified students must have completed all the required coursework and maintained the necessary grade point average.

“Tens of thousands of California students are fully qualified to go to CSU, but don’t jump the hurdles of the admissions process,” said Sen. Christopher Cabaldon, D-Napa, the law’s author. “At the same time, nearly half of CSU’s campuses have substantial available enrollment capacity and need more students to sustain their high quality academic programs.”

The legislation also requires the California Community Colleges system to promote the CSU dual admission transfer program, which guarantees CSU admission to eligible community college students.

Student IDs to include suicide hotline number

Student identification cards issued at California public secondary schools and institutions of higher education after July 1 will include the phone number for The Trevor Project, a crisis and suicide prevention hotline for LGBTQ youth.

Suicide is the second leading cause of death among young people age 10 to 14, and the third leading cause of death for 14- to 25-year-olds, according to the Centers for Disease Control and Prevention.

“In today’s political climate, LGBTQ+ students face significant levels of bullying, harassment, and discrimination — negatively impacting their mental health and academic success,” according to Assemblymember Mark González, author of the bill. “AB 727 will provide critical resources to support LGBTQ+ youth in crisis and those who have experienced harassment.”

Early education to take seats on board

The next eligible seat that comes open on the California Commission on Teacher Credentialing in 2026 must go to an early childhood education teacher, according to Assembly Bill 1123.

The bill calls for one of the six teacher representatives on the commission to hold a child development teacher permit. It also reduces the number of public representatives on the board from three to two to allow the governor to appoint someone who teaches early childhood development at a university or college.

The commission, which governs the licensing and preparation of the state’s teachers, is made up of 15 voting members, including the state superintendent of public instruction, six practicing teachers, a school administrator, a school board member, a school counselor, a faculty member from a teacher preparation program, a human resources administrator, and three public representatives.

The early childhood representatives will be seated after the next eligible seat is vacated or a representative’s term ends.

In the 60 years since California first began issuing child development permits to early childhood educators, there has never been a voting member on the commission, which governs their licensure and preparation, said Assemblymember Al Muratsuchi, D-Torrance, author of the bill.

In 2025, California became the frontline of a federal playbook for more militarized immigration enforcement.

Raids on California streets and lawsuits that followed helped rewrite the ground rules for how agents can operate. What began as before-dawn operations in Golden State farm towns quickly expanded into a broader nationwide strategy: surprise workplace and neighborhood sweeps and roving patrols miles from the border.

CalMatters reporters across California documented how tactics first seen in Kern County, such as warrantless traffic stops and a heavy reliance on appearance-based profiling, spread statewide and then across the country. The U.S. Supreme Court has upheld these methods.

Early in the second Trump administration, the federal government sent Marines to the border, citing a crisis. Those troops have since quietly gone home.

Hundreds of National Guard troops were deployed to Los Angeles following civil unrest about immigration arrests. President Donald Trump threatened to send forces to the Bay Area, then backed off. State officials objected, while federal leaders characterized the moves as necessary. The standoff deepened long-running tensions between California and the White House over the state’s sanctuary policy and federal authority.

All this fell most heavily on families with deep roots in California. CalMatters found deportations increasingly reached people who have decades-long residence, U.S.-citizen children, stable employment, and even those following legal pathways. ICE detained people at green-card interviews and routine check-ins. The changes destabilized school systems, the agricultural economy, and health care.

A federal lawsuit over a deaf asylum seeker’s prolonged detention exposed gaps in medical care and disability accommodations in immigration facilities. Under Trump, asylum seekers with pending claims lost protection from arrest. A new system is emerging where people trying to follow the rules are easier targets than those evading them. Detention centers drew scrutiny as local authorities shied away from conducting health and safety inspections, while advocates reported worsening conditions inside.

A quieter but equally consequential trend has emerged: The immigrant population shrank. Love them or hate them, Trump’s immigration policies were achieving the administration’s goals. Pew Research found the national immigration population shrank by about 1.4 million people in the first half of 2025, the first decline in half a century. Economists warned about slower growth. State leaders weighed long-term impacts on the workforce, schools, and social service systems.

Enforcement grew more data-driven. Drone surveillance expanded in urban areas, and advocates warned about new uses of artificial intelligence to identify deportation targets and analyze asylum and visa applicants’ digital histories.

2026 outlook

California expects further interior enforcement, additional legal battles over sanctuary laws, funding, and renewed attempts to expand detention capacity. School districts and employers are preparing for more mass removals, while lawmakers are considering new privacy protections.

This article was originally published on CalMatters and was republished under the Creative Commons Attribution-NonCommercial-NoDerivatives license.

Days after 2025 began, two fires scorched through Los Angeles neighborhoods, the most destructive in California’s history. The Eaton and Pacific Palisades fires also renewed attention to issues such as utility oversight, insurance coverage, and the broader challenges of wildfire planning in a changing climate. And their harms rippled outward, leaving thousands of low-income workers and immigrants without jobs. 

But California found pushing its climate agenda forward to be an uphill battle this year: Ambitious climate goals faced a hostile federal government economic pressures.

Anticipating opposition from President Donald Trump, state leaders chose to abandon important clean-air rules before he even took office, including plans to phase out diesel trucks and transition to cleaner trains. Nearing mid-year, Trump and his allies in Congress blocked the state’s clean-car mandate, a blow to emissions reduction plans.

Nevertheless, as part of budget negotiations, Gov. Gavin Newsom sought to reauthorize California’s landmark cap-and-trade program, launching a debate that would resolve in the final hours of the legislative session.

Blaming climate and environmental regulation, Phillips 66 and Valero followed through on plans to shutter oil refineries, raising concerns about gas prices and the future of the state’s oil industry. In Wilmington, Phillips 66 is now closed. A high-profile explosion at Chevron’s El Segundo refinery nearby underscored persistent safety and environmental risks tied to remaining facilities.

By the end of the legislative session, these issues converged, as legislators passed a six-bill deal that included a plan to boost oil drilling, relief for ratepayers who fund wildfire mitigation, and an extension of the now rebranded “cap-and-invest” program.

As lawmakers passed sweeping reforms to California’s landmark environmental review law, critics warned exemptions may make it easier for potentially high-polluting advanced manufacturing facilities to take root in already vulnerable areas.

Longstanding conflicts over water continued to simmer this year. The governor continued pressing to fast-track a $20 billion tunnel around the Sacramento-San Joaquin Delta to send more water south — to the outrage of Delta lawmakers. And dry conditions led to dire projections for the Colorado River, a vital water supply for Southern California. They ramped up the tensions — and the urgency — as negotiators from states that rely on the river tried, and failed, to reach a deal portioning out water supplies.

2026 Outlook

Affordability, the cost of climate adaptation, and pollution harms, in the skies and in the waste stream, continue to be key issues for California. As Gov. Gavin Newsom’s balancing act continues, the state will navigate tensions with environmental justice advocates unhappy with compromises. Emerging risks include the cost – in energy and water – of data centers, and the environmental consequences of the battery economy.

This article was originally published on CalMatters and was republished under the Creative Commons Attribution-NonCommercial-NoDerivatives license.