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City of Long Beach Announces New Homeless Services Provider at City-Funded Shelter Sites

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Long Beach, CA ~ Long Beach, CA - The City of Long Beach has announced a major change in its homeless services provider at City-funded shelters. Effective immediately, People Assisting The Homeless (PATH) will take over operations at 443 shelter beds across various sites, including the Colonial Motel. This transition marks the end of the City's contract with former operator First to Serve.

The decision to switch providers came after a thorough review by the Health and Human Services Department and the City Auditor's Office revealed compliance issues with First to Serve. As a result, the City began withholding payments in November 2025 while further investigating the matter. Mayor Rex Richardson emphasized the City's commitment to holding providers accountable for meeting contract standards.

"The City takes contract compliance seriously and, when required, we go all the way, including terminating contracts," said Mayor Richardson. "I want to thank our Health Department, our City Attorney, our City Auditor and City Management for all working together to identify issues and taking quick action to ensure our providers are held accountable to the standards in our contracts."

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After a competitive procurement process, PATH was selected by the City Council on March 10, 2026, to take over shelter operations. The transition was completed without any disruptions on March 31, 2026. PATH brings extensive experience in operating shelter systems and was recently chosen as a lead service provider under the Los Angeles River Encampment Resolution Funding. In partnership with the City, PATH has already successfully housed 60 individuals at the Colonial Motel within two weeks of taking over operations.

As participants continue to move into permanent housing on a rolling basis, more beds will become available at the site. The investigation into contract compliance with First to Serve is ongoing and no further information is available at this time.

City Auditor Laura Doud reaffirmed her office's commitment to ensuring taxpayer dollars are used appropriately for those they are meant to serve.

"The City Auditor's Office remains committed to safeguarding taxpayer dollars and ensuring funds are used strictly as intended to benefit those they are meant to serve," said Doud.

In the coming weeks, the City will work closely with PATH to fill all available rooms at City sites. City Manager Tom Modica expressed confidence in the partnership with PATH and the Health and Human Services Department in successfully transitioning shelter operations without any disruptions.

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"Together with PATH, our Health and Human Services Department successfully transitioned shelter operations without disruption to people currently staying in our shelters and will continue expanding housing placements under the new contracts," said Modica.

PATH is a part of the Long Beach Continuum of Care and has been working with the City to provide permanent supportive housing and interim housing services. The organization offers a range of services including outreach, employment assistance, mental health services, Veteran services, and substance use treatment linkages. Annually, PATH serves approximately 26,000 individuals and has helped over 25,000 people find permanent housing since 2013.

The City Auditor's Office has released an update on its homelessness audit while City Management has also provided an update on their efforts to address contract compliance issues. The City remains committed to providing resources, services, and care for all community members experiencing homelessness. For more information on the City's efforts to reduce homelessness in Long Beach, visit longbeach.gov/homelessness and follow @lbhealthdept and @longbeachcity on social media.

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