A federal judge on Tuesday, June 24, declined to appoint a court-ordered receiver to oversee Los Angeles’ homelessness response, calling it an “extreme” and premature step that should only be used as the last resort.

Instead, U.S. District Judge David O. Carter found the city in violation of its 2022 settlement agreement with the LA Alliance for Human Rights and appointed a court monitor to oversee compliance. The ruling sets several deadlines aimed at bringing the city back into alignment with the agreement.

Unlike a receiver, a monitor does not take control of city functions. Rather, the monitor gathers information and assists the court in supervising the city’s compliance with the agreement.

“We feel fully vindicated by the judge’s decision, we’re very pleased with it,” said Matthew Umhofer, an attorney for LA Alliance for Human Rights. “It makes it clear that the city’s been breaking its promises to us, to the court, and to the city for years under this agreement. It uses very harsh language to describe the city’s failures under the agreement. And it holds the city’s feet to the fire to try to bring the city into compliance.”

As of Tuesday evening, representatives from the City of L.A. had not yet responded to calls for comments.

Judge Carter cited recent structural changes in the city and county’s approach to homelessness — including the withdrawal of funding from Los Angeles Homeless Services Authority (LAHSA) and the creation of new agencies — as a reason to hold off on appointing a receiver. “Although democracies can be inefficient and even wasteful,” Carter wrote, “only the voters of Los Angeles have the power to elect representatives to solve these problems.”

The LA Alliance, a coalition of downtown business owners and residents, filed suit in March 2020, accusing the city and county of failing to adequately address the homelessness crisis.

In 2022, the city agreed to create 12,915 new shelter beds over five years and to house at least 60% of the unhoused population in each City Council district. But the LA Alliance says the city has failed to meet those terms. A court-ordered audit in March was unable to verify the number of beds the city claims to have created, further fueling the group’s push for stronger enforcement and a court-appointed receivership.

Last month, Carter presided over a seven-day evidentiary hearing receiver to determine whether the city was out of compliance and whether a receivership — a third-party takeover of core elements of the city’s homelessness response, including oversight of LAHSA and the mayor’s Inside Safe program — was warranted.

Attorneys for the LA Alliance initially subpoenaed Los Angeles Mayor Karen Bass and Councilmembers Traci Park and Monica Rodriguez, but later withdrew the request, saying they feared the city would use the fight over their appearances to delay a court case on homelessness. The city’s legal team had argued the officials are “apex witnesses” — high-ranking government officials who should not be compelled to testify without compelling justification.

Instead, the city called officials including City Administrative Officer Matt Szabo and Dr. Etsemaye P. Agonafer, the city’s first-ever Deputy Mayor of Homelessness and Community Health. During sometimes contentious testimony, Szabo defended the city’s approach to homelessness, arguing that the agreement provides broad flexibility in how it meets its housing obligations. He also said the city is committed to fulfilling the agreement, despite “severe financial headwinds.”

Bass last appeared in court in connection to this case in March. She told the court she has long believed the homeless response system was “broken.”

She said there was much in the report she agreed with. However, she said, she was sure of one thing above all: “I believe we can stop people from dying on our streets.”

This is a developing story, please check back for updates

Originally Published: June 24, 2025 at 5:51 PM PDT