The Los Angeles Homeless Services Authority (LAHSA) replaced its audit committee chair with a Mayor Karen Bass appointee, removing the commissioner who had pushed hardest for financial accountability.

Justin Szlasa lost the audit chair post without explanation after spending a year pressing for stronger oversight of the troubled agency, LAist reported. The full LAHSA Commission approved the change in early September. His replacement is Charles Stringer, also a Bass appointee.

The move comes as LAHSA faces a federal investigation into the potential misallocation of more than $1 billion in federal homelessness funds since 2021, and as Bass prepares for a Tuesday, Sept. 15, congressional hearing on the matter. As we reported Sept. 3, the House Subcommittee on Delivering on Government Efficiency summoned Bass to testify about allegations of waste, fraud and abuse at LAHSA.

Szlasa, appointed to the 10-member LAHSA Commission by L.A. County Supervisor Kathryn Barger, had uncovered that LAHSA paid a nonprofit to serve twice as many camping spots as actually existed at one site. Federal Judge David O. Carter called that arrangement "obvious fraud," according to LAist. Szlasa also pushed LAHSA to finish a years-long audit into $7 million in unspent federal grants.

As chair, Szlasa controlled the audit committee's agenda and oversaw LAHSA's internal audit staff between monthly meetings. He remains a committee member but no longer sets the schedule.

"LAHSA can't produce what I would consider basic financial statements," Szlasa told LAist.

The removal was recommended by Stephanie Graves, the new LAHSA Commission chair and a Bass appointee. Graves told LAist it was her "prerogative" to reassign chairs but did not explain her reasoning. Szlasa said he asked to stay on and was denied without a reason.

Neither the mayor's office nor Graves has said whether Bass directed or discussed the change beforehand. Graves served on Bass's mayoral transition team and attended a meeting of the mayor's re-election campaign finance committee, according to a campaign disclosure cited by LAist. She also runs a public relations firm with taxpayer-funded contracts overseen by Bass and her appointees.

Rick Cole, a Pasadena City Council member, called the removal part of an "ongoing cover-up of dysfunction at the agency," according to LAist.

@kennethmejiaLA: "When Nithya Raman pushed for a Homeless Oversight Bureau for more transparency/accountability & ran for Mayor because the status-quo around was/is NOT working, she got removed as Committee Chair. When Szlasa pushed for more LAHSA audits, he got removed as Audit Committee Chair."

L.A. City Controller Kenneth Mejia drew a parallel on his personal X account on Sept. 5, comparing Szlasa's ouster to former Council member Nithya Raman losing a committee chair role.

LAHSA Chief of Staff Paul Rubenstein said committee chair changes are normal, though he provided data showing at least one chair had previously served a second consecutive year.

Outside reviewers from accounting firm KPMG told commissioners in early September that LAHSA cannot easily track its own vendor payments. A federal court hearing on HUD's suspension of LAHSA funding is scheduled for Tuesday, Sept. 22.