The Department of Justice (DOJ) has launched a comprehensive investigation into the disbursement of $24 billion allocated to combat homelessness in California. The investigation will examine how the funds were spent, focusing on potential fraud and misuse of taxpayer money.
The sheer amount of money involved – $24 billion – highlights the magnitude of the problem. Despite this massive investment, homelessness in California has increased by 32%, raising serious concerns about accountability and effectiveness of spending.
The investigation covers Los Angeles, Orange, Riverside, San Bernardino, San Luis Obispo, Santa Barbara, and Ventura Counties, encompassing a population of 20 million. The probe will involve the FBI, the Department of Housing and Urban Development Office of Inspector General (HUD-OIG), and IRS Criminal Investigation.
Prior audits revealed significant shortcomings in financial tracking and evaluation of the programs' effectiveness. Neither San Diego nor San Jose could fully account for their expenditures, lacking mechanisms to track spending and evaluate program outcomes. A court-ordered audit in Los Angeles found that services were disjointed, data quality poor, and financial controls lacking.
Unlike previous audits with no consequences, this DOJ investigation could result in criminal charges and jail time for those found responsible for misusing funds. The possibility of intentional chaos to conceal payoffs is also being explored.
The article points out that California's regulations for homeless assistance have changed in the last decade, leading to decreased requirements for drug-addicted and criminal homeless individuals. This has contributed to an influx of people seeking aid without accountability.