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Thursday, August 20-August 26, 2026
VOL. 30,
NO. 289
Disaster loans available for LAHSA announces immediate and long-term businesses affected by warehouse fire as cleanup continues reforms following independent firm's review By Joe Taglieri
By Joe Taglieri
F
joet@civicnewsgroup.com
joet@civicnewsgroup.com
ollowing an independent review by a wellknown international accounting firm, the Los Angeles Homeless Services Authority on Friday reaffirmed plans to modernize financial operations in an effort to end chronic failures managing contractors and the joint city-count agency's finances. As LA County and city officials over the last few years have initiated steps to break away from LAHSA, the fiscal review by KPMG earlier this year found that delayed payments to contracted service-providing organizations stemmed from a combination of interconnected operational issues rather than any single underlying cause, according to LAHSA officials. KPMG reviewers also identified opportunities to improve workflow efficiency, reduce administrative bottlenecks, strengthen cash management practices and modernize financial systems. Officials said LAHSA has already implemented many of the firm's recommendations. "The KPMG review provides valuable validation of challenges we have already identified and begun
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The 2026 homelessness county organized by LAHSA. | Photo courtesy of the Los Angeles Homeless Services Authority
addressing," Interim LAHSA CEO Gita O’Neill said in a statement. "The report also offers a roadmap for continued improvements that will strengthen our financial operations, support our provider partners, and ensure public funds are administered effectively and responsibly." KPMG auditors specified organizational and operational factors that primarily caused LAHSA’s problems —
complicated administrative and contractor workflows, manual as opposed to automated work "processes," the complexity of dealing with multiple funding sources and the underutilization of data systems that could help improve operations. LAHSA officials said many of the report's recommendations align with corrective
actions that LAHSA is already doing or is starting to implement: • "Launching a payment backlog reduction strategy and clearing outstanding payables; • "Better coordinating with funders to improve cash flow and pay providers on time; • "Implementing new finan-
See LAHSA reforms Page 27
mall businesses and privatenonprofit corporations affected by the recent cold-storage warehouse fire in Boyle Heights can start applying for lowinterest federal disaster loans. The U.S. Small Business Administration approved a request from state officials for a disaster declaration to enable the loan program, Gov. Gavin Newsom announced Tuesday. "The Boyle Heights community has endured tremendous disruption, and we moved quickly to bring every available resource to bear," Newsom said in a statement. "These loans will help local businesses and nonprofits meet essential costs, retain workers, and move forward as the community recovers." The SBA's disaster declaration followed an Aug. 10 request from the Governor's Office of Emergency Services. "Recovery depends on getting practical assistance to communities as quickly as possible," Cal OES Director Caroline Thomas Jacobs said in a statement. "Cal OES requested this declaration so affected businesses
and nonprofits can access additional support to meet essential costs and continue serving the Boyle Heights community. We will continue working with Los Angeles and our federal partners to connect eligible organizations with the resources they need to recover." Loans can go as high as $2 million with interest rates as low as 4% for businesses and 3.625% for nonprofits and with terms of up to 30 years. Interest does not accrue, and repayment starts 12 months after the initial loan disbursement. SBA officials determine eligibility and set loan amounts and terms based on an applicant's specific financial situation. The SBA's Economic Injury Disaster Loans provide working capital and are available even when a business or nonprofit did not sustain physical damage. Loan funds may pay fixed debts, payroll expenses, accounts payable and other costs that could not be paid as a result of the fire. Work to remove the tons of rotting food stored at the destroyed warehouse
See Warehouse fire Page 14
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