Long Beach is now ‘truly digging down' into homeless providers

The city of Long Beach says it is now gathering more information about the leaders of homeless service organizations and "truly digging down into who it is that we're working with." The comments from Health and Human Services Director Alison King mark the first time she has addressed cameras about problems involving the City's homeless-service providers and the changes her department is making to its contracting and oversight processes. Stream Los Angeles News for free, 24/7, wherever you are. WATCH HERE WATCH HERE The exchange came near the end of an Aug. 18 City Council budget hearing and lasted less than two minutes— a moment viewers may have missed, but one that offered a new, firsthand look at how the department says it is changing its oversight of nonprofit providers receiving millions in public money. Councilmember Kristina Duggan, from the third district, raised the issue, describing controls on homelessness spending as 'a major area of focus and obviously a concern.' 'I know we've spent a lot of time strengthening the safeguards to ensure we're getting the most out of our contractors and that these dollars are being used effectively,' Duggan said. She asked King to explain what safeguards had been established to ensure the City was receiving the services it paid for. King said the department had worked closely with the City Auditor's Office and increased staffing to monitor providers. 'We have increased our staffing to be able to ensure that monitoring of these providers does indeed take place,' King said. King also acknowledged that contracts would be revamped to address concerns that had previously been difficult to detect. 'We will be revamping contracts to address some of the concerns that have come up that were less obvious, but have been identified,' King said. 'We are putting safeguards and guardrails in to try and address some of those things.' King did not identify those concerns or say which providers were involved. She said the department continues to see challenges involving service providers in Long Beach and elsewhere. 'As we see some of what has been presented, we are addressing those — whether it is getting more information about leaders and truly digging down into who it is that we're working with and ensuring that the oversight that is necessary is in place,' King said. The comments follow billing and compliance disputes involving First to Serve and the April Parker Foundation, two organizations selected by Long Beach to provide homeless services. First to Serve held several City contracts beginning in 2022, including agreements to operate shelters, manage interim housing and provide homelessness prevention and rapid rehousing services. Long Beach stopped payments to First to Serve after contract-compliance concerns were identified and later replaced the organization as the operator of several City-funded shelters. The City also withheld payments from the April Parker Foundation over disputed invoices and supporting documentation. The foundation denies the City's claims and has sued Long Beach, alleging it is owed approximately $1.1 million. The City Auditor is conducting a broader audit of homeless service spending, provider compliance and the Health Department's oversight. That audit is expected to be completed by the end of summer. Following King's remarks at the City Council meeting, NBC4 asked what vetting had been conducted before First to Serve and the April Parker Foundation were selected. NBC4 also asked what the City is examining now that it did not examine before, why additional safeguards became necessary, what previously 'less obvious' concerns have been identified, whether warning signs involving either provider were missed, who was responsible for reviewing the organizations and their leadership, and whether anyone within the Health Department has been held accountable for an oversight failure. King did not provide the requested on-camera interview. Instead, the Health Department issued a written response attributed to a department spokesperson. 'The City has strengthened its oversight of homeless services contracts and continues to do so,' the statement said. The department said the City uses a competitive Request for Proposals process that evaluates the program an organization proposes, along with its staffing, experience, organizational capacity and general financial information. And, it had created a dedicated contract-monitoring and compliance team, revamped its monitoring tools, strengthened the areas it reviews and added resources to investigate potential concerns. 'These enhancements put the City in a stronger position to identify issues earlier and respond more quickly,' the department said. The statement said that when concerns arise, the City may provide technical assistance, require corrective action, withhold payments when documentation does not validate invoiced costs or terminate a contract. But the department did not describe the specific vetting conducted on First to Serve or the April Parker Foundation. It also did not explain whether information about provider leadership was previously collected, identify the 'less obvious' concerns King referenced or say what the previous process failed to detect. The department did not answer whether warning signs were missed or identify who was responsible for the original reviews. In response to NBC4's accountability question, the department said personnel actions and disciplinary matters are confidential. NBC4 did not ask the City to identify an employee, but whether anyone had been held accountable. NBC4 is still waiting for specific answers about the previous vetting process, the concerns that prompted the additional safeguards and which changes are already operating. At the Council meeting, King said the department 'will be revamping contracts,' describing that work in the future tense. The written statement from the City said it had already revamped its monitoring tools and strengthened the areas it reviews.