Friday, 11 September 2026, 6:57
Long Beach officials are intensifying their scrutiny of nonprofit organizations contracted to provide homeless services, following billing disputes and compliance failures that have raised concerns among city leaders.
Councilmember Kristina Duggan highlighted the pressing need for tighter controls on homelessness spending during the August 18 meeting. In response, King confirmed that the department has collaborated closely with the City Auditor’s Office and significantly increased staffing dedicated to monitoring service providers.
We are putting safeguards and guardrails in to try and address some of those things, King stated, noting that upcoming contract revisions will target previously less obvious compliance gaps. While she declined to specify which organizations were involved on camera, a written statement from the department emphasized the creation of a dedicated contract-monitoring team and revamped compliance tools.
The push for transparency comes amid ongoing financial friction between the city and key homeless service providers. Long Beach recently halted payments to First to Serve after identifying contract-compliance issues, subsequently replacing the organization as the operator of several city-funded shelters. Similarly, the April Parker Foundation faces withheld payments over disputed invoices, leading the foundation to file a lawsuit alleging it is owed approximately $1 million.
These disputes underscore the complex landscape of municipal homelessness management in Los Angeles County, where cities must balance urgent shelter needs with rigorous fiscal accountability.
Long Beach has historically relied on a competitive Request for Proposals process to select service providers, evaluating factors like organizational capacity, staffing, and financial stability. However, past experiences have revealed that initial vetting sometimes misses subtle operational red flags, prompting the current administration to adopt a more aggressive stance on post-award monitoring and continuous auditing.
As the City Auditor's comprehensive review nears completion by the end of summer, Long Beach residents and stakeholders await concrete findings that will shape the next phase of local homelessness policy. Until then, the city remains committed to strengthening its oversight framework to protect public funds while delivering essential community services.
