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City Attorney Calls for Independent Audit of Stay Housed LA

July 13 2026
Written by Jack Humphreville.

LA WATCHDOG - “Stay Housed LA refers to a tenants’ rights program funded by the City of Los Angeles and the County of Los Angeles that provides eviction defense representation and direct legal services, direct rental assistance and education to permit tenants to better defend themselves against unlawful evictions.” 

Over the past several months, City Attorney Hydee Feldstein Soto has requested additional information from four service providers before she approved multiyear contracts totaling $177 million. Underlying these requests for financial and program documentation was the objective of ensuring that taxpayer money was spent efficiently. She also wants to increase transparency and accountability into the operations of these contractors that provide eviction defense and housing stability services to many renters who face the possibility of being tossed out on the street.  

The delay in authorizing these contracts was not well received by the City’s homeless industrial complex. One of the four providers, the Legal Aid Foundation of Los Angeles, has continued to stonewall the City Attorney’s reasonable request for information and documentation despite being the beneficiary of hundreds of millions in grants from the City, the County, the State, and the federal government.  This coverup was aided by the Housing Department which failed in its responsibility for ensuring that the proper financial information and documentation were provided on a timely basis. 

It appears that the City Attorney will approve the four contracts because of the need to provide essential services. 

City Attorney Hydee Feldstein Soto Files Second Public Report Re: “Stay Housed LA” 

There was also considerable pressure exerted by selected members of the City Council, the Housing Department, and the homeless industrial bureaucracy that wanted to keep the money spigot open.  

The City Attorney is also calling for an independent forensic audit which is long overdue. She is also calling for agreements with the service providers to allow for full transparency and access to financial and operational information.   

Any audit must be conducted by nationally recognized firm such as Alvarez and Marcel that provided a “searing” audit for Judge Carter involving the litigation involving the LA Alliance for Human Rights, Skid Row, and the City. We do not need a doctored audit like the City’s audit of the Fire Department’s role during the Palisades fire. 

We are not sure what to believe about the City’s homeless efforts other than they are a hot mess.  LAHSA has been essentially defunded. Skid Row only gets worse.  The County is establishing its own operation. The City claims the rate of homelessness has decreased, but if so, this is because of the elimination of the low handing fruit.  On the other hand, the Rand Corporation was not in complete agreement. And the Olympics are around the corner. 

Angelenos need the truth about homelessness. We cannot continue to throw good money down the drain. Full transparency and accountability are demanded. 

 

(Jack Humphreville writes the LA Watchdog column for CityWatch, where he covers city finances, utilities, and accountability at City Hall. He is President of the DWP Advocacy Committee, serves as the Budget and DWP representative for the Greater Wilshire Neighborhood Council, and is a longtime Neighborhood Council Budget Advocate. With a sharp focus on fiscal responsibility and transparency, Jack brings an informed and independent voice to Los Angeles civic affairs. He can be reached at [email protected].) 

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