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California State Auditor Logo COMMITMENT • INTEGRITY • LEADERSHIP

Homelessness in California
State Government and the Los Angeles Homeless Services Authority Need to Strengthen Their Efforts to Address Homelessness

Report Number: 2017-112

Figure 1

A color-coded bar graph showing the Authority’s revenue sources from Los Angeles County, City of Los Angeles, and HUD sources from fiscal years 2009-2010 through 2016-2017. Each year’s revenue bar is split into three colors: green representing HUD revenue, blue representing city of Los Angeles revenue, and light brown representing Los Angeles County revenue. The Authority’s total revenue fluctuated between about $62 million to $76 million in fiscal years 2009-2010 through 2015-2016. In fiscal year 2016-2017, the Authority’s total revenue increased to around $105 million. In each fiscal year, HUD revenue was around $20 million. In fiscal years 2009-2010 through 2011-2012, there was more city than county revenue. In fiscal years 2012-2013 through 2015-2016, city and county revenues were both around $20 million, and in fiscal year 2016-2017 city revenue increased to around $46 million, and county revenue increased to around $39 million.

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Figure 2

A color-coded map of Los Angeles County showing the boundaries of the eight service areas of the Los Angeles Continuum of Care. Each service area is a different color, and the boundaries of the city of Los Angeles are outlined in black. Service areas 1 (Antelope Valley), 3 (San Gabriel Valley), and 7 (East LA) are on the east side of the county and do not include parts of the city of Los Angeles. Parts of service areas 2 (San Fernando Valley), 5 (West LA), 6 (South LA), and 8 (South Bay/Harbor) include the city of Los Angeles. Service area 4 (Metro) is completely within the city boundaries.

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Figure 3

A map of the United States of America with stick figures representing people experiencing homelessness. About one-quarter of the figures are located in California. The lower part of a graphic shows that 68 percent of California’s homeless population is unsheltered, compared with 24 percent unsheltered in the rest of the nation.

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Figure 4

A photo showing a homeless encampment on an urban sidewalk. A tent, bicycles, and personal belongings covered in tarps sit on the sidewalk next to palm trees. Skyscrapers are visible across the street.

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Figure 5

A flow chart showing the Authority’s process for evaluating applications for funding for new projects. The chart shows that a portion of the process changed in August 2017 and a portion remained consistent both before and after August 2017, and ends with whether an application is awarded funding to provide services to homeless individuals. Before August 2017 the applications went through a two-tiered application process starting with threshold review where both the Authority’s procurement and finance monitoring unit evaluated the applying agency. The chart shows that the agency had the opportunity to appeal and the results and subsequently all results were then presented to the Authority’s program and evaluation committee or its commission for approval before moving on to the next phase of evaluation. The chart shows that after August 2017 the Authority implemented a new process that allows agencies to bypass the threshold review process by becoming certified through a Request for Statement of Qualifications process which is valid for five years. The chart shows the portion of the process that is consistent before and after August 2017 which included the Authority issuing the RFP, conducting a mandatory bidder’s conference, Q&A period, and agencies submitting applications. Once the agency either passed threshold review prior to August 2017 or qualifies via RFSQ starting in August 2017 the application then goes through quality review. The chart shows that the procurement and performance department, data management department, and finance department all evaluate different portions of the application during quality review. The Authority’s procurement unit then ranks the applications and allocates the funds to successful projects until funds are exhausted. If the application passes quality review and there are funds available then it is recommended for funding. If it passes quality review, but no funds are available it will not be recommended for funding. If the application fails quality review it will not be recommended for funding, but has an opportunity to appeal. All the recommendations and results are presented to the Authority’s program and evaluation committee or its commission for approval. If funds are awarded then the Authority contracts with the agency and the agency provides services to homeless individuals.

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