City Controller Claims Widespread Waste, Inefficiency, and Deep Structural Failures in the City’s Homelessness and Affordable‑Housing Systems

Los Angeles City Controller Kenneth Mejia used a budget hearing to outline what he described—through audits and data already released by his office—as widespread waste, inefficiency, and deep structural failures in the city’s homelessness and affordable‑housing systems. While the hearing itself is not yet documented in publicly available sources, Mejia’s recent audits and analyses provide a clear picture of the issues he has been raising.

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A City Controller Sounding the Alarm

During recent financial disclosures and oversight reports, City Controller Kenneth Mejia has repeatedly warned that Los Angeles’ homelessness and housing programs are plagued by massive underspending, inefficient management, and poor oversight. His office’s homelessness budget analysis found that the city failed to spend $513 million of its $1.3 billion homelessness budget in the 2023–24 fiscal year—nearly half of all funds allocated. ¹

Los Angeles City Controller Kenneth Mejia

Mejia’s findings show that:

• Only 30% of the state’s Homeless Housing, Assistance, and Prevention (HHAP) grants were used.

• Just 58% of Mayor Karen Bass’ Inside Safe Program budget was spent.

• Less than half of the $150 million generated by Measure ULA was deployed.

• An additional $195 million was encumbered but not guaranteed to be spent. ¹

Mejia has attributed these failures to a “sluggish, inefficient approach” inside city departments, citing lack of staffing, outdated technology, and slow administrative processes. ¹

Waste, Inefficiency, and a Strained City Budget

Beyond homelessness spending, Mejia has also warned that the city’s broader financial picture is deteriorating. In his release of the city’s Annual Comprehensive Financial Report, he noted that Los Angeles ended the fiscal year in deficit, with general fund revenues falling short by $222.1 million and liability payouts exceeding expectations by $153 million. ²

Departments most over budget included:

• LAPD: $127 million over

• General Services: $105 million over ²

These overruns, combined with unspent homelessness funds, have pushed the city’s reserve balance down to $330.6 million, below the city’s own 5% reserve policy target. ²

What Mejia’s Warnings Mean for Homelessness and Housing

The Controller’s audits and dashboards show a system where money is allocated but not deployed, where projects stall, and where bureaucratic bottlenecks prevent the city from delivering housing or services at the scale promised to voters.

Mejia has emphasized that while homelessness dropped 2% in 2024, the city could have achieved far more had it used the full budget. “Imagine how much bigger the drop would have been,” he said, pointing to the hundreds of millions left idle. ¹

A Growing Call for Accountability

While city officials have defended their spending strategies—arguing that some funds cannot be spent within a single fiscal year—Mejia’s audits have intensified public scrutiny. His office continues to publish dashboards, audits, and financial reports aimed at increasing transparency around homelessness spending and affordable‑housing oversight.³

As Los Angeles enters another budget cycle, the Controller’s findings are likely to shape debates over how the city manages its homelessness crisis, how it funds housing programs, and how it ensures that billions in public dollars actually reach the people they are intended to help.

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References (3)

1: L.A. Failed To Spend $513 Million From Homeless Budget, Says City .... https://lamag.com/news/la-failed-to-spend-513-million-from-homeless-budget/

2: Los Angeles City Controller Warns of Dire Budget Concerns. https://californiapolicycenter.org/los-angeles-city-controller-warns-of-dire-budget-concerns/

3: LAController - Kenneth Mejia. https://controller.lacity.gov/ov/