Los Angeles housing finance officer Donald Byers has alleged that millions of dollars meant for homeless housing disappeared while senior city officials failed to act to protect Mayor Karen Bass’s political survival.
Byers made the claims in undercover video footage released on April 14, 2026, by the O’Keefe Media Group and published by The Gateway Pundit.
In the recording seen by The Kenya Times, Byers is identified as a Finance Development Officer involved in Los Angeles city housing programs and in oversight of funding for low-income housing projects.
According to the footage, Byers claimed that between $10 million and $20 million (Ksh1.29 billion to Ksh 2.59 billion) in public housing funds had gone missing inside the city’s housing and homelessness programs.
He alleged that money allocated to housing developments was being diverted into private pockets rather than used for construction and services intended to address homelessness.
Claims of Misused Housing Funds in LA
According to the undercover footage, Byers states that funds allocated to housing developments intended to address homelessness are instead being siphoned off by developers.
He alleges that city officials responsible for oversight have failed to take corrective action despite internal warnings and irregularities in project financing.
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Byers says he reported the suspected misconduct through internal channels, but no meaningful action followed.
In the video, he is heard saying that projects continue to receive funding even after experiencing years-long delays and even when departments cannot clearly document where the money has gone.
He characterizes the situation as one in which accountability mechanisms exist in name but not in practice.
One project cited in the footage is the Marcella Gardens development, linked to a developer identified as CRCD.
Byers claims the city could not determine how funds tied to that project were spent, despite continued disbursements.
He describes developers as engaging in what he calls “sketchy” financial behavior while facing minimal scrutiny from city authorities
Political Motive Claims and Mayor Karen Bass
In the recordings, Byers alleges that political considerations influenced the lack of enforcement.
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He claims that developers with access to Mayor Karen Bass’s office were not challenged because doing so could threaten political fundraising and reelection-related interests.
Byers is quoted as saying that calling out certain developers could affect the mayor’s ability to secure the political support needed.
The allegations also extend to broader homelessness funding structures.
Byers criticizes the Los Angeles Homeless Services Authority (LAHSA), saying it receives large allocations of public funding but produces few visible results.
He claims that despite billions spent on homelessness initiatives, large portions of the funding funnel into private pockets rather than into completed housing or services.
Requests for clarification were sent to Mayor Karen Bass’s office, the Los Angeles Housing Department, and the Los Angeles Homeless Services Authority.
No responses had been received at the time of publication.
LA Housing Program
The Los Angeles housing program is run mainly by the Los Angeles Housing Department (LAHD) in coordination with the Los Angeles Homeless Services Authority (LAHSA).
The system expanded after voters approved Measure HHH in 2016, authorizing USD 1.2 billion (Ksh 154.8 billion) in bonds for permanent supportive housing (PSH).
Projects typically combine Measure HHH funds with state money, federal Low‑Income Housing Tax Credits (LIHTC), and grants from the U.S. Department of Housing and Urban Development (HUD).
Oversight and funding approvals are split across multiple city agencies and departments.
