A South Los Angeles homeless shelter operated by Urban Alchemy was contracted to provide 88 beds. A spot inspection found 44 platforms without tents, leaving half of the reported beds unused according to the Los Angeles Times.
The site is located in the parking lots next to the Lincoln Theater on South Central Avenue. It opened in 2022 under Project Homekey. The contract value was $3.1 million, later reduced to $2.3 million for the 2024–25 fiscal year after budget reduction notices in April 2024. The Los Angeles Homeless Services Authority (LAHSA) renewed the contract at 88 beds in May, then revised the contract to $1.2 million for 46 spaces effective July.
![A homeless encampment has formed beneath the 10 Freeway near 17th Street in downtown Los Angeles. Dozens of people currently live along the road in front of a nearby recycling center, where tents stretch for several blocks. [Sangjin Kim, The Korea Daily]](https://www.koreadailyus.com/wp-content/uploads/2025/10/1027-newsletter-homeless.jpg)
Court-appointed special master Michele Martinez inspected the site in June and observed tents on one lot and 44 empty platforms on the other. She reported the discrepancy to the city. During a court hearing, U.S. District Judge David O. Carter asked city attorneys why the capacity numbers were not verified.
LAHSA Commissioner Justin Szlasa visited the site in May 2025 during a review of $400 million in proposed homeless-services contracts. He reported documents showing Urban Alchemy was paid $2.3 million, while the average occupancy was 35 people per night, calculating the cost at $186 per person per night.
The shelter is listed among 7,600+ beds the city reports under the Roadmap MOU, a court-ordered agreement requiring the provision of shelter capacity. After Martinez asked whether all 88 beds were considered active, a city attorney responded that her oversight did not apply to the Roadmap.
At the time of the inspection, tents were present only on one lot. Platforms on the second lot were bare.
A spokesman for Urban Alchemy stated that tents were removed due to anticipated budget reductions. LAHSA spokesman Ahmad Chapman confirmed the budget reduction to $1.2 million beginning July for 46 spaces, stating that the adjustment decision was made by the city.
Los Angeles County released a draft budget scheduled to take effect the following July. It proposes closing 20 of 30 Pathway Home sites, reducing more than 700 beds, cutting street outreach workforce by half, eliminating navigation programs, ending prevention funding, removing $12 million for employment and legal services, and closing all Safe Parking sites. Officials cited lower Measure A revenue, rising operational costs, and the expiration of temporary state and federal support.
Urban Alchemy continues to operate safe-sleep villages, outreach units, and ambassador programs in Los Angeles. Financial management questions have previously been raised regarding the organization.
BY YEOL JANG [jang.yeol@koreadaily.com]
