Los Angeles housing officials debunked claims by outgoing City Attorney Hydee Feldstein Soto that a nonprofit legal aid provider fell short of reporting requirements under a taxpayer-funded contract aimed at preventing evictions.
The conflict centers on $177 million in city-approved funding that hasn’t been finalized because Feldstein Soto declined to sign off on a long-term contract for the Legal Aid Foundation of Los Angeles, LAist reported.
The money, approved months ago by Mayor Karen Bass and the City Council, is intended to support renters facing eviction through legal defense, rent relief and related services.
Feldstein Soto told LAist that the legal aid foundation didn’t comply with required monthly reporting and failed to properly account for its spending of city funds.
She said the information submitted wasn’t detailed enough to show how many cases funded by the city went to court, what the outcomes were or the average cost per case. “The funds that we provided have not been accounted for properly in any way, shape or form,” Feldstein Soto told the outlet formerly known as public radio station KPCC.
The legal aid foundation strongly rejected the allegations.
Barbara Schultz, the nonprofit’s housing director, said the organization has fully complied with its contract and provided detailed information about caseloads and tenant outcomes. Officials with the Los Angeles Housing Department backed that position, saying the foundation met every request for information and that reporting systems improved as the program matured.
The dispute comes amid a long-running clash between Feldstein Soto and the foundation, which has sued the city over homelessness policies. In a confidential memo earlier this year, Feldstein Soto urged officials to reconsider awarding such a large contract to a group that frequently litigates against the city.
The foundation leads Stay Housed L.A., a city– and county-funded initiative launched during the pandemic to provide eviction defense and other housing assistance. The city has relied on the group to help implement its Right to Counsel ordinance, which offers free legal representation to low-income renters facing eviction.
According to a housing department report released Wednesday, Stay Housed L.A. has helped tenants in 27,273 eviction cases. Of the 6,522 tenants fully represented by attorneys, 53 percent remained in their homes, while 41 percent reached agreements allowing more time to move, rent forgiveness or sealed eviction records. Fewer than 3 percent lost in court.
Tenant advocates warn that without prompt approval of the funding, smaller nonprofit subcontractors could run out of money, forcing layoffs and putting more renters at risk of homelessness.
— Dana Bartholomew