A federal judge is poised to decide whether to seize control of Los Angeles’ multi-billion-dollar homelessness initiatives, citing the city’s alleged failure to adhere to settlement agreements. U.S. District Judge David Carter concluded an evidentiary hearing this week, instructing both sides to submit closing briefs by Tuesday. His impending ruling could strip City Hall of its day-to-day oversight of homelessness spending.
The LA Alliance for Human Rights is pushing for a receivership, arguing that the city’s fragmented bureaucracy, unreliable data, and missed deadlines have led to thousands remaining unsheltered despite substantial funding increases.
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The Los Angeles Homeless Services Authority (LAHSA) reported approximately 75,000 homeless individuals in Los Angeles County in 2024, a significant jump from 46,000 in 2016, even as annual spending surpasses $1 billion.
“Breached and broken, your honor,” stated LA Alliance attorney Matthew Umhofer, “The system is broken and demands extraordinary judicial action.”
Judge Carter has overseen the case since 2020. In 2021, he ordered $1 billion in city funds to be placed in escrow, citing officials’ “unable or unwilling” approach to addressing what he deemed a “public health and safety emergency.” A subsequent 2022 audit by Alvarez & Marsal further described the system as “disjointed” with “fragmented data systems.”
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While the escrow order preceded Mayor Karen Bass’s term, Judge Carter had given her until May 2025 to demonstrate improvements, warning he would become officials’ “worst nightmare” if reforms faltered. Mayor Bass, in her April State of the City address, contended that her strategy is showing progress and that homelessness is “down.”
The city, represented by a team from Gibson Dunn, argued against receivership, with lead attorney Theane Evangelis warning it would transform the proceedings into a “referendum on the city’s policy choices relating to homelessness.” The city maintains it is on track to deliver nearly 13,000 additional beds by 2027, as outlined in a 2022 settlement aiming for nearly 20,000 “housing solutions.”
However, Emily Vaughn Henry, former LAHSA data chief, reportedly testified she was fired after refusing to delete emails and “do whatever we can to make the mayor look good,” raising concerns about inflated or unverifiable bed counts. Defense attorneys acknowledged past data collection struggles but insisted LAHSA has since “taken steps to ensure the data we are reporting is accurate.”
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According to Bloomberg Law, Judge Carter reportedly spoke of moving future proceedings to Skid Row after Marine veteran Don Garza testified that people are “languishing, dying on the streets” while public funds disappear.
The judge’s 2021 sentiment, “This court cannot idly bear witness to preventable deaths… The City and County of Los Angeles have shown themselves to be unable or unwilling to devise effective solutions to L.A.’s homelessness crisis,” was cited by the LA Alliance in closing arguments, underscoring the high stakes of the upcoming decision.
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