L.A. homeless shelter had half of 88 beds that city told court

Facility had 44 bare platforms during a spot check. Judge in charge suspects fraud.

- BY DOUG SMITH

ERIC THAYER Los Angeles Times

URBAN Alchemy's homeless shelter in South Los Angeles, shown this month, has fallen under scrutiny.

When the special master overseeing a city court-ordered agreement to provide thousands of homeless shelter beds made a spot check at a South Los Angeles shelter, she was disappointed in what she found.

The shelter in the parking lot of the historic but shuttered Lincoln Theater in South Los Angeles is a bare-bones affair: gray tents pitched on wooden platforms in rows on two parking lots. The homeless services provider Urban Alchemy has a $2.3-million contract to provide 88 beds there.

But on her visit in June, special master Michele Martinez saw tents on only one parking lot. On the other were 44 bare platforms.

Opened in 2022 as part of the city’s Project Homekey response to the pandemic, the shelter on South Central Avenue has now fallen under scrutiny as an example of poor financial controls in the homeless services system.

During a court hearing Nov. 12, U.S. District Judge David O. Carter, who is overseeing the agreement, said he sensed fraud, and chided the city for what he perceived as a lack of curiosity over the discrepancy.

“Is the city’s position when the special master notes obvious fraud and that the documents don’t match, that you are bringing forth to this court that Ms. Martinez should disregard that and not report this to the court?” he asked the attorneys representing the city.

A spokesman for Urban Alchemy said it removed the tents after being put on notice by the city in April 2024 that budget cuts were coming. As a result, the contract for the 2024-25 year was reduced to $2.3 million from $3.1 million. L.A. City Administrative Officer Matt Szabo did not immediately respond to a Times email asking for an explanation.