The federal trial for Alex Soofer, the founder of the nonprofit Abundant Blessings, is scheduled for Nov. 10, as scrutiny grows over how Los Angeles’ homeless services system handles public money. Prosecutors allege Soofer diverted $10 million through LAHSA, the agency that coordinates city and county homelessness spending in Los Angeles.
Public records reviewed by LAist show LAHSA’s compliance staff warned on May 6, 2024, that Abundant Blessings was “high-risk” after the group had not enrolled a single homeless client in 2023 but continued billing for services. Still, LAHSA commissioners approved a $2.6 million contract renewal two weeks later, and another $250,000 contract in June for operations tied to Mayor Karen Bass’ Inside Safe motel program.
The records also show that LAHSA did not report evidence of possible federal violations to the U.S. Department of Housing and Urban Development until April 2025, eight months after it said it had obtained that evidence. LAist reported that the agency’s actions appeared to reflect broader problems in Los Angeles’ homelessness contracting system, not just one nonprofit’s alleged misconduct.
The case comes as Los Angeles’ homelessness spending has grown sharply over the past decade, while critics say oversight has not kept pace. The article argues that the Abundant Blessings case should be seen as a warning about a system that can move large sums of public money with limited accountability.
