Audit: San Jose failed to adequately track $300 million in homelessness spending

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Audit: San Jose failed to adequately track $300 million in homelessness spending
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The audit, released this week by the California State Auditor, found San Jose was unable to account for all of its homelessness spending.

RVs and cars are parked at the homeless encampment near Columbus Park in San Jose, Calif., on Friday, April 12, 2024. Over the past three years, San Jose has failed to consistently track the more than $300 million spent to fight homelessness and cannot adequately ensure that the money is helping to alleviate the crisis, according to a much-anticipated state audit.

Auditors detailed a laundry list of recommendations for San Jose to complete by September, including publicly reporting its homelessness spending, drafting a homelessness response plan with specific goals, including placement rates for moving people into permanent housing, and monitoring the performance of its nonprofit service providers, which receive millions in city funding. The recommendations aren’t technically mandatory, but the auditors will issue regular reports on the city’s progress.

About $181 million of the total was local funds, while $89 million came from the state, and the remaining $32 million from the federal government. In fact, Covert said San Jose is actually ahead of the curve when it comes to keeping similar data. That’s because the city works with the county on regionwide homelessness planning, which includes reporting the number of homeless people officials help into housing along with other benchmarks.

For Todd Langton, executive director of the volunteer-run homeless advocacy group Agape Silicon Valley, the audit findings are evidence that the city’s largest nonprofit services providers — including HomeFirst, PATH, LifeMoves and Destination: Home — aren’t following through on their commitments. While the report acknowledged more shelters are needed, it found most homeless people who move through them don’t find permanent housing. It faulted the city for lacking a plan to add the affordable housing necessary to pull most people out of homelessness.

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