A critical discussion on homelessness compliance took center stage during the Los Angeles City Council meeting on May 20, 2025, as council members raised concerns about the effectiveness of current occupancy agreements and booking contracts under the InsightSafe program. The dialogue highlighted the urgency for clarity on compliance with the Alliance agreement, particularly as the city faces potential receivership due to fiscal challenges.

Council members emphasized the need to differentiate between "eligible" and "compliant" rooms, with one member stressing, "We have to be very deliberate about what we're doing because the game playing has gotten us here this far." The current occupancy agreements, which include 466 rooms contracted through 2027, were confirmed as compliant, but questions lingered about an additional 216 rooms that are not yet secured for the same duration.

The council's scrutiny extended to the booking agreements, which were described as costly and potentially non-compliant. One member pointed out that these agreements do not contribute to long-term solutions, stating, "We're paying twice as much for these rooms, paying for the services, and not getting closer to compliance with the alliance." The complexity of verifying these agreements was also raised, with concerns about their impact on the city’s financial obligations and the potential for wasted resources.

In response, city officials acknowledged the challenges but assured that they are only reporting beds that have been utilized, aiming to maximize reimbursement from the county. However, the lack of timely data from the Los Angeles Homeless Services Authority (LAHSA) on service provider costs and occupancy rates has complicated the situation further.

The meeting concluded with a call for a more centralized approach to managing homelessness services, as council members expressed frustration over fragmented decision-making processes. The council is expected to revisit these issues in upcoming sessions, with a focus on creating a comprehensive bed plan that aligns with the city’s fiscal realities.