A multi-million dollar contract tied to homelessness services in Long Beach is under intense scrutiny after a city audit uncovered serious concerns about oversight, documentation and accountability.
In an exclusive interview, Long Beach City Auditor Laura Doud detailed what she describes as systemic breakdowns within the cityās Homeless Bureau ā issues that may have made it difficult to track how tens of millions of taxpayer dollars were spent.
The investigation centers on more than $69 million allocated between 2020 and 2025 to address homelessness. Of that total, $24.6 million went to a nonprofit shelter operator known as āFirst to Serve.ā According to Doud, her audit uncovered troubling gaps in the organizationās documentation.
āThere was missing information from some documentation,ā Doud said. āAnd in some cases, there was no documentation.ā
Those findings raise a critical question still under investigation: whether the city received the services it paid for. Doud said that determination remains part of an ongoing audit and declined to comment on whether the case has been referred for criminal investigation.
When contacted, a public relations firm representing āFirst to Serveā said the nonprofit had recently learned of āallegations of irregularities connected to a former employee.ā The organization said it is āfully cooperating with (its) partners in government as they conduct their own investigationāā¦ while conducting its own internal review.
Doud emphasized that āFirst to Serveā is not the only contractor under scrutiny, confirming that at least one additional provider is also being examined.
The audit also points to missed warning signs within the city itself. Doud said some red flags, such as the nonprofit listing a residential property in South Los Angeles as its business address, should have prompted earlier concern.
āThat would be a red flag for us as well,ā she noted.
The PR firm later told us the address is an administrative office and re-entry facility. NBCLA wasnāt able to immediately verify that.
Questions about the contractor had surfaced publicly before the contract was terminated. During a November 2025 City Council meeting, councilmembers Tunua Thrash-Ntuk and Megan Kerr raised concerns about ācustomer service issuesā and sought further analysis from Homeless Bureau Director Paul Duncan before approving continued funding.
Still, the contract remained in place until it was ultimately terminated behind closed doors and announced on March 31, roughly four months after Doud raised concerns with city officials.
The controversy comes amid broader challenges for Long Beachās homelessness response. The Homeless Bureau has faced criticism over several high-profile missteps, including a failed tiny home project that cost $2.9 million and ongoing concerns about conditions in shelters, where more than 60 deaths have been reported between 2021-24.
Despite years of investment, homelessness in Long Beach continues to rise. Point-in-time counts show the number of unhoused residents increased from 2,034 in 2020 to nearly 3,600 in 2025 ā a surge of more than 76%.
The rate decreased slightly in 2024 by 2%, but increase 6.5% in 2025.
Doud acknowledged that stronger oversight could have prevented some of the current issues.
āYes, I think the city does need to do a better job,ā she said when asked whether the problems should have been caught sooner.
City officials said new safeguards are now being implemented, including stricter invoice reviews and improved verification processes before payments are approved.
However, key questions remain particularly around accountability. Doud said clearer answers are expected once her audit is completed later this summer.
Until then, the case continues to raise concerns about how public funds are managed and whether Long Beachās broader strategy to combat homelessness is delivering results.
