California Bungled $316M From Feds Earmarked for the Homeless, Now May Lose It

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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.

OpentheBooks.com

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.



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