Photo: JOHN ALLE – Santa Monica Coalition
During the California Gold Rush, there were 624 miners for every 1,000 people. But, it wasn’t the goldminers that made millions, it was the businessmen providing services.
The 1850s millionaires included Samuel Branan, a journalist and businessman, who opened supply stores in the gold fields and sold equipment. Thomas Larkin finance voyages that brought clothes and food to San Francisco. Levi Strauss of Levi Strauss & Co. who established a dry good business in San Francisco.
Nothing’s changed in 175 years. It’s still the businesses (nonprofits) providing the services, that making the money. Here’s how today’s gold rush works.
The government gives tax dollars to nonprofits, which are supposed to help the homeless. The homeless are like the miners—don’t get the money, but stay for the weather. The people making money are the nonprofits “serving” the homeless.
Federal, state and local money flowed into California in 2023 to help the more than 181,000 homeless. An audit by the legislative Analyst’s office showed that an unprecedented $24 billion in state was spent on homelessness over the last five years – and that doesn’t include the $4 billion that the city and County spend on the homeless, including at least $255 million for Inside Safe.
With all the money spent, homelessness has not significantly decreased. The last point in time count showed that LA county homeless had gone down slightly from 75,518 in 2022 to 75,312 in 2023. The City showed a decrease from 46,260 (2022) to 45,252 (2023). Even that slight decrease has been disputed because of count problems and because of the increase in deaths because of fentanyl.
If you go to any homeless nonprofit website, you will not see statistics of how many people they have helped into permanent housing.
Photo: JOHN ALLE – Santa Monica Coalition
When Circling the News followed the effectiveness of Safe Parking, CTN looked at six nonprofits for information on how many people they had helped find permanent housing. Zero.
All sites listed several years of the filed Form 990, which means they have a tax-exempt status.
Nonprofits, examined included Volunteers of America (VOALA), North Valley Caring Services, Safe Parking Lot, End Homelessness Ca., Special Services for Groups – Homeless Outreach Program Integrated Care System (HOPICS) and WLCAC.
VOA partnered with the California Department of Housing and Community Development and City of Los Angeles and opened two affordable, permanent housing facilities: The Londie in Northridge, and Elderberry Village in Woodland Hills. Both properties are former motels acquired through the city’s Phase Two: Project Homekey initiative, which strives to offer permanent housing to qualifying individuals. https://voala.org/voala-opens-affordable-housing-facilities-in-northridge-and-woodland-hills/. Its total assets were listed as $329,675,334 in 2023. And the total amount for salaries, wages and benefits was $124,654,753. It partnered with the nonprofit Skid Row Redevelopment Corporation.
North Valley Caring Services group’s income went from $357,761 (2018) to $8,286,455 (2022).
Community Partners had assets of $47,722, 802 (2018) and $70,054,669 (2023).
End Homelessness California $112,578 (2017) and $2,813,954 (2022)
HOPICS received $84 million (2018) and $149.1 million (2022). The nonprofit site said it received funding from Measure H, the 2017 L.A. County Sales tax, and a mix of federal, state and city funds.
WLCAC – Watts Labor Community Action Committee showed revenue of $14,263, 174 (2018) and $24,792,737 (2022).
Several nonprofits such as Venice Community Housing listed buildings and land valued as $13,356,124 (in 2012). But by 2022, property and equipment on Form 990 were listed as $91,808,666 (the 2023 audit showed total property and equipment as $126,106,103 before depreciation). VCH currently owns 19 properties (https://projects.propublica.org/nonprofits/display_audit/2023-12-GSAFAC-0000049876).
One of VCH’s properties is the Rose Apartment building, near Lincoln, across from Whole Foods, 720 Rose Avenue was designed by Brooks + Scarpa and Tina Chee Landscape Studio and is a LEED Platinum Building. the city approved $13,906,003 issued bonds for the building that would provide 34 units of affordable housing. It was completed for $20.6 million with $6.8 million from Proposition HHH.
The salaries of the key people were listed for the nonprofit and most were in the six-figure range. For example, Community Partners President Alicia Lara received $354,646, HOPICS Director Veronica Lewis received $261,000, End Homelessness California Executive Director Mel Liyanaarachichige Tillekeratne received $105,600 and Venice Community Housing Executive Director Becky Dennison $110,369.
This new apartment building, located across from Whole Foods on Lincoln houses the offices of the Venice Community Housing Corporation.
The losers in the 2020 Gold Rush are the homeless.
State Senator Dave Cortese began pushing for the state for an audit of the billions of dollars spent after visiting a massive homeless encampment on vacant land near San Jose’s airport, where hundreds of people lived among rodents, massive piles of trash and broken-down cars and RVs. When he started asking whether state funding was going to that encampment, he couldn’t get a clear answer.
In Los Angeles it seems clearer, the money is going to homeless nonprofits, which is why local leaders didn’t welcome the Supreme Court decision on the Grants Pass cases. Their friends run the nonprofits.
Photo: JOHN ALLE – Santa Monica Coalition
Alarming but extremely factual. In adjacent Santa Monica, $48 million was spent this year on homeless services, but the majority of its homeless sleep in parks, storefronts, carports and alleyways. An additional $10 million was doled out as Homeless Services Grants. Just one example – – $1.4 million of City-granted money to the People Concern remains unaccounted for. $600,000 from their budget in Santa Monica operations was used for “travel,” and food for the homeless was paid for by donations. An independent accounting firm Santa Monica hired to conduct an audit has been unable to reconcile their various budgets with their General Ledger. Saint Joseph’s Center, CLARE Foundation, Family Services, and Hospitality Training Academy had similar infractions. This goes on year after year. There is no accountability. Verify by reading the March 6, 2024 lead article in the Santa Monica Daily Press.
Words can’t explain the extent of waste and corruption in addressing the Homeless Industry in California and Los Angeles is near the top of the list.
Despite the truth as you have report it, somehow voters continue to endorse additional Homeless Initiatives.
If you add the funding for non-profits involved in Homelessness as well as those benefiting from Open Borders / Illegal Immigration – California truly is the new Gold Rush for them.
Sue! What brilliant reporting. And, what a tragic, criminal situation. People living high on the backs of the homeless. Thanks for the work. I did foward this to a free-lance reporter i know, & included your cell. His name is Robert Lopez, in case he contacts you.