A significant federal court hearing regarding Los Angeles’ homelessness programs recently concluded, marked by over 2,000 objections raised by defense counsel and ongoing tensions between city representatives and advocates for the homeless.
U.S. District Judge David O. Carter is set to rule on whether to seize control of the city’s homelessness initiatives, a $1 billion effort aimed at addressing the ongoing crisis.
This unprecedented move is being driven by a coalition of business owners, property owners, and residents, led by the LA Alliance for Human Rights, who argue that the city has failed to meet previous agreements to provide sufficient housing solutions and remove encampments.
The city sought to protect its authority by hiring the prominent law firm Gibson Dunn to replace in-house attorneys who have previously handled the longstanding case.
Led by attorney Theane Evangelis, the firm is well-regarded, with Evangelis having argued successfully before the U.S. Supreme Court in a case that allowed the arrest of homeless individuals for illegal camping.
The hearing, which stretched over two weeks, featured numerous technical objections primarily related to definitions and fine distinctions around the terms of a settlement agreement made in previous years.
The LA Alliance contends that these settlement agreements from 2020 and 2022 required the city to provide nearly 20,000 new housing solutions and clean up just under 10,000 encampments from public areas.
Attorney Matthew Umhofer addressed the court, asserting, “Breached and broken, your honor. That’s what we’re here to talk about today. The system is broken and demands extraordinary judicial action.”
In contrast, Evangelis countered that the alliance’s claims were exaggerated, maintaining that no evidence existed to suggest the city would falter in achieving its goals.
The debate over the removals of encampments sparked further contention, as Shayla Myers, representing two intervening groups, argued that removing tents does not necessarily equate to reducing homelessness.
She stated, “When a city takes a tent, it just means that in the heat of the day in Skid Row that unhoused residents have nothing to shelter them. But it doesn’t mean that an encampment has been reduced.”
Earlier expectations of testimony from City leaders, including Mayor Karen Bass, did not materialize, as Umhofer withdrew their names from the witness list shortly before the hearing began, indicating a potential appeal.
Long segments of the hearing focused intensely on the definitions and metrics related to encampments and shelter arrangements.
Carter’s month-long deliberations stem from the LA Alliance’s petition filed in February 2024, which threatened to impose a $6.4 million fine against the city for allegedly undermining efforts to establish encampment milestones.
Amid rising scrutiny and skepticism from Judge Carter, the city opted to pay over $3 million for an independent audit from Alvarez & Marsal due to concerns regarding data integrity and financial oversight of homelessness programs.
The audit, released in February, criticized the city’s lack of cohesive data systems and financial controls.
Although it did not uncover specific instances of fraud, it highlighted inconsistencies, including indications that some available beds were being double-counted in city reports.
These findings amplifying calls for reform to the Los Angeles Homeless Services Authority (LAHSA) have led to shifts in financial management at both the county and city levels.
While the County Board of Supervisors voted to transfer funds from LAHSA into a newly created department, the city’s leadership continues to rely on the agency amid mounting pressure for accountability.
Judge Carter, who has been outspoken about the failures of the city’s homeless response system, has demanded swift actions to fix the broken system, declaring his commitment to becoming “your worst nightmare” if Mayor Bass fails to meet his expectations.
Following extensive witness testimonies regarding the inefficacies of current homelessness efforts, the possibility of a receivership loomed over the hearing’s proceedings.
Testimony from former LAHSA Chief Information Officer Emily Vaughn Henry described the city’s data reporting as “smoke and mirrors.”
Laura Frost, from Alvarez & Marsal, elaborated on the findings that many requested data items were either missing or left unanswered, raising further doubts about the operational integrity of the homelessness programs.
Henry pointed out that the dysfunction within the homelessness data system was compounded by pressures to present favorable outcomes to the mayor.
Downtown residents who attended the hearing testified to the challenges faced by those living on the streets, with one observer stating, “Daily life is survival…Where did the money go? Why are these people dying on our streets?”
The ongoing community advocacy highlighted contrasting views on how to effectively respond to the homelessness crisis, with calls for rapid, less expensive housing options instead of permanent developments.
City Administrative Officer Matt Szabo fervently defended the city’s commitment to its obligations and expressed confidence in progress toward the housing goals set forth in the agreements.
As the hearing drew to a close, Umhofer invoked the judge’s prior statements, emphasizing the court’s inability to overlook preventable deaths and pressing the need for urgent solutions to the public health crisis stemming from homelessness.
In closing arguments, Myers expressed her belief that rather than a receivership, the situation demanded heightened oversight and verification of the city’s actions.
Evangelis concluded by cautioning against federal overreach into local governance and reminded the court of the complex dynamics involved in managing these substantial issues.
The fate of Los Angeles’ homelessness strategy now rests with Judge Carter, who has repeatedly indicated his dedication to curbing homelessness while navigating the legal complexities presented by all parties involved.
image source from:https://www.latimes.com/california/story/2025-06-16/a-federal-judge-weighs-turning-la-citys-homelessness-programs-over-to-a-receiver