Misused public fundsHealth & social services

Long Beach fires largest homeless shelter operator First to Serve after city auditor's review of $69 million in spending flags billing irregularities

Confidence: Corroborated · 3 sourcesCity of Long Beach · Sep 22, 2026

Subject of this story

First to Serve

Also named

Oversight

Laura Doud, Long Beach City Auditor

What happened

Long Beach Health Director Alison King announced the city was cutting ties with First to Serve, the nonprofit that had run 423 of the city's roughly 500 shelter beds under contracts worth an estimated $13-14 million per year, after City Auditor Laura Doud's review of about $69 million in city homeless-services spending since 2022 found troubling gaps in the organization's financial documentation. The City Council met in closed session on March 3, 2026 and approved new shelter contracts with Los Angeles-based PATH on March 10 without public discussion. A representative for First to Serve said the nonprofit had learned of 'allegations of irregularities connected to a former employee' and was cooperating, while Deputy City Attorney Nicholas Masero confirmed the city's investigation was ongoing.

Sources (3)

Long Beach PostLong Beach abruptly cuts ties with its largest homeless shelter operator after concerns over billing practices.

LAistLong Beach cuts ties with its largest homeless shelter operator over billing practices concerns.

NBC Los AngelesSecond homeless contractor under scrutiny in Long Beach as city navigates missteps.

Response

First to Serve

Statement given

Contacted and responded — exact wording not on record.

What happened next (0)

No outcome recorded yet.

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