The Los Angeles Homeless Services Authority Commission approved a new policy Friday that will provide clear, structured guidance for disclosing conflicts of interest in the contracting process.
In a unanimous vote, commission members instructed staff to implement the so-called Conflict-of-Interest Policy in Contracting for all LAHSA employees. According to agency officials, the policy is “not a change of values,” but a “refinement” of their existing regulations.
“By strengthening structure, centralizing accountability and reinforcing legal compliance, LAHSA is demonstrating that every contracting decision is grounded in fairness, integrity and public trust,” Holly Henderson, director of risk management, said. “Adoption of this policy will strengthen our safeguards, promote transparency and provide clear guidance for staff and stakeholders.”
In her report, Henderson noted that a conflict of interest can arise when employees, executives, commissioners or contractors have personal or financial ties to an entity that holds a contract or is in the process of obtaining one. Without clear guidance, the agency risks legal violations, erosion of public trust and operational risks.
The policy requires staff to disclose conflicts through Form 700 filings, recuse themselves from any stage of contracting where conflicts exist and submit to stronger independent oversight.
According to Henderson, three different departments oversee conflicts of interests. But her office, Risk Management, is responsible for monitoring and ensuring tasks are met on a monthly basis.
Human resources manages conflicts of interest as it collects economic Form 700 filings. The executive office with board secretaries will be in charge of the LAHSA CEO and commissioners, and the contracting team also plays a role in ensuring compliance with the agency’s policy.
A representative for LAHSA did not immediately respond to a request for comment.
In February, LAist reported on alleged ethics violations involving former CEO Va Lecia Adams Kellum, who approved a $2.1 million contract with her husband’s employer, though she denied any wrongdoing.
The agency contracted Norton Rose Fullbright as outside counsel in March to conduct an independent review of allegations.
“Norton Rose Fullbright concluded its three-month review and determined that (Upward Bound House) was already a LAHSA subcontractor, and specifically for U.S. Housing and Urban Development Continuum of Care programs, before Dr. Adams Kellum became LAHSA’s CEO,” a report released in August from Fullbright read.
Adams Kellum’s husband, Edward Kellum, serves as Upward Bound House’s director of operations and compliance.
Adams Kellum announced her resignation shortly after the Los Angeles County Board of Supervisors voted in March to establish a new homelessness department.
LAHSA Commissioners appointed Gita O’Neill, an assistant Los Angeles City attorney who handles homelessness policy, as interim chief executive of the homeless agency.