California Bungled $316M From Feds Earmarked for the Homeless

After collecting $316 million from the federal CARES Act to house homeless people during the Covid-19 pandemic, California simply held onto the funds instead of distributing it. The state may now lose it.

That’s according to a new report from the state auditor’s office, that found the California Department of Housing and Community Development “did not take critical steps to ensure those funds promptly benefited that population,” the Associated Press reported.

The department was supposed to distribute the money to local groups to provide homeless services but it took so long to finalize contracts that those groups didn’t have access to much of the funding during the height of the pandemic, auditors found.

There’s a big problem when Congress throws so much money at the states that they cannot even spend it.

The state audit on the misuse of homeless funds found that the department didn’t give most groups access to the first round of federal funding until December 2020, seven months after it was announced by the federal government, and only recently gave them access to the second, larger round of funding.

Now, the groups might not be able to spend the money by a September 2022 federal deadline and may lose the funding. Funding that could be used to help with issues like San Francisco’s homeless human waste problem.

That’s right. The state that, as of January 2020, had about 151,000 homeless people may have to give back $316 million because it was too incompetent to spend it.

California has hit a new low, managing to take a terrible homeless situation and making it worse by possibly wasting $316 million.

The #WasteOfTheDay is presented by the forensic auditors at OpenTheBooks.com.

This article was originally published by RealClearPolicy.com

Comments

  1. Bungled? More like burgled. Money laundering in Ca,. D.C., and the world.

  2. There isn’t a single state or local jurisdiction that has done a good job of distributing the rental/mortgage assistance money. Now Senile Joe has given them even more to squander on unused public transit, impractical solar panels and a bankrupt K-12 public education system, among other foolish initiatives. And if spend-thrift Democrats AND Republicans have their way, another $3.5 trillion will soon be on the way.

    If the convoluted bureaucratic rules can’t be surmounted by the average tenant and homeowner, why not allow landlords and mortgage companies the ability to submit claims, with adequate documentation and sworn statements under penalty of perjury? They generally have more expertise than a tenant or homeowner in the legal gymnastics required to tap into the government gravy train.

  3. Linda Diehl says

    There are GOOD reasons Californians are demanding Gavin Newsom and his CORRUPT administration be REPLACED!
    If you haven’t already ….. VOTE Gavin Newsom OUT of office!! DEADLINE to vote for Newsom’s recall IS SEPT 14th!! Your ballot should be in your mailbox, OR contact your county voter office — at CalVoter.org NOW!!

    Q1 – Recall (remove) Newsom as governor? YES!!
    Q2 – What candidate shall succeed Gavin Newsom if he is recalled? LARRY ELDER!!!

  4. Robert Wilson says

    The most important thing is to vote for RECALL!!! I will take any Republican to replace him although personally I am voting for Kevin Kiley.

  5. YES, vote the EVIL with total SHAME!!

  6. California diverted the money to pay for Curtis Ishii’s $418,600+ CALPERS pension.

  7. The Governor has everything under control. If you don’t believe me, ask him. Noooooo, of course he wouldn’t lie.

  8. Long Beach has made Good on the sums of money & homeless problem, providing Komes & live-in car lots safe & protected. Shameful most politicians spend & plunder…

  9. There are many items “misplaced”, not used and secret hence, Lee’s refusal to disclose the entire budget.

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