Part 6/12:
Critics have long argued that California’s homelessness funding has been subject to a “Homeless Industrial Complex”, where vested interests and profiteers benefit financially from the crisis. Some public officials, nonprofits, and developers profit from contracts and grants, creating a perverse incentive to keep the crisis alive—despite spending billions.
Former LHSA CEO Kellum’s scandal offers a stark example: she resigned earlier this year after signing off on multiple checks totaling $2.1 million to a nonprofit that employed her husband in a senior leadership role. The LA Ethics Board dismissed it as an “oversight,” but many see it as emblematic of the systemic corruption fueled by billions in taxpayer dollars.