NEW ORLEANS — As the state moves to clear homeless camps in downtown New Orleans, there is a legal battle brewing between the city’s lead provider of services to the unhoused and the Louisiana Legislative Auditor.
The state auditor is now conducting a performance audit of Unity of Greater New Orleans and its sister organizations across the state.
Auditors want to know how the agency is using federal dollars to help the homeless.
Unity Executive Director Martha Kegel says the money provides permanent housing and services to at least 3500 people at any given time.
“The national average for keeping people housed, who were formally homeless, is [a] 90 percent success rate,” Kegel said. “Ours is [a] 95 percent success rate. HUD has verified that. We’re proud of our performance.”
LLA General Counsel Jenifer Shaye confirms auditors have already visited Unity homeless centers and reviewed its contracts with the city of New Orleans and other public entities.
She says so far, the agency has not complied with a legislative subpoena seeking specific information about Unity’s clients.
“The records that show, it’s a database, an electronic database, that shows when the homeless person entered the system, who they are, what they qualified for, and what happened to them in the system,” Schaye said.
Unity filed suit, claiming state auditors are not entitled to clients’ personal information.
“Their names, social security numbers, whether they have HIV, whether they have mental illness, whether they have physical illnesses, whether they’re members of the LGBTQ plus community,” Kegel said.
“There is an exception in the HUD law that allows the auditor of any state and the United States to review personal, identifiable information,” Shaye said.
The issue is now expected to be decided by a Baton Rouge judge.
“I find it really upsetting that we were subpoenaed to turn over information like that, but I’m relieved that it’s in the hands of a judge to make that decision,” Kegel said.
“If they didn’t spend the money properly, if that’s what the data shows then we say how was it spent,” Schaye said. “Who benefitted from this money because we know the money went to them.”
A hearing on Unity’s lawsuit is now set for November 18.
Unity said in a statement, “On an annual basis, an independent CPA conducts an in-depth comprehensive federal audit of UNITY’s finances, which is then submitted to the legislative auditor, among other agencies. UNITY has a long record of clean financial audits.”
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