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LA’s $87M taxpayer money mystery deepens as nonprofit backed by mayoral hopeful Nithya Raman faces spending scrutiny

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Paige, J. (2026, October 16). LA’s $87M taxpayer money mystery deepens as nonprofit backed by mayoral hopeful Nithya Raman faces spending scrutiny. New York Post. https://nypost.com/2026/10/16/us-news/nonprofit-backed-by-mayoral-hopeful-nithya-raman-faces-spending-scrutiny/

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New York Post · collected 2026-10-16 · by Jamie Paige

Quick Summary

The Legal Aid Foundation of Los Angeles (LAFLA), a nonprofit involved in eviction defense programs backed by mayoral candidate Nithya Raman, saw its revenue increase from $17.6 million in 2019 to $58.6 million in 2024, while reported spending on housing and eviction defense dropped sharply. City Attorney Hydee Feldstein Soto has raised concerns about the discrepancy, estimating that between $55 million and $87 million of taxpayer funds cannot be accounted for based on LAFLA’s public financial records. The investigation highlights potential mismanagement or lack of transparency in how city funds are being used through these programs.
Written by AI on 2026-10-17, from this article's own text only (the story summary below draws on all the coverage).

AI analysis

Story summary

The Legal Aid Foundation of Los Angeles (LAFLA) faces scrutiny over missing millions in taxpayer funds as its revenue more than tripled from $17.6 million in 2019 to $58.6 million in 2024, while reported housing and eviction-defense spending plunged from $17.6 million in 2022 to $4.4 million in 2024. City Attorney Hydee Feldstein Soto demands a full audit after finding that between $55 million and $87 million of city and county funding cannot be reconciled with the nonprofit’s financial records, raising questions about years of taxpayer-funded contracts under mayoral hopeful Nithya Raman's eviction-defense program. LAFLA disputes these findings, insisting every dollar is accounted for. The controversy also involves Measure ULA funds, known as the "mansion tax," which further complicates the situation.

Written for “Nithya Raman Mansion Tax Scrutiny” on 2026-11-03, grounded in this article and the 1 other(s) covering the same event.

Story

📰 Nithya Raman Mansion Tax Scrutiny
Politics · 2 article(s) covering the same event. See how they differ ↓

Compared with similar articles

This article reads unscored and hedges 19% of its claims. Each row says how that neighbour differs.
New York Post
Hedges 0 of 15 claims Outlet record 66/100
How this article was measured signals, leaning charts, publisher record, byline, topics and claims

Signals How these are calculated →

Claims extracted
26
sentences that state something as happening or true
Uncertain
19%
5 of 26 hedged ("reportedly", "may", "according to")
Leaning
withheld
no quote in the article backed the model's score
Publisher signals
66/100
New York Post's corrections and hedging, across everything collected from it. Not a measure of accuracy.
Outlets on this story
2
Politics
Same framing elsewhere
1
articles that frame the event the way this one does
Analyzed 2026-10-17 · how these are computed

How this is being covered How these are calculated →

Article leaning vs. publisher reliability
Source leaning vs. consistency

Publisher

New York Post · 16258 article(s) · 35 correction(s) detected
Running correction rate · 35 correction(s)

Who wrote this

Jamie Paige
33 article(s) here · 1 carrying a prediction
🔮 Los Angeles Mayor Karen Bass made a last-minute push for votes Monday, joining gubernatorial hopeful Xavier Becerra at a downtown LA cafe just 24 hours before Election Day as she battles City Councilwoman Nithya Raman to keep her job.
🔮 Bass painted a grim picture when asked by the California Post what four years under Raman would look like.
🔮 But their anger with the mayor isn’t enough to make them turn toward socialist-backed candidate Nithya Raman.
🔮 Los Angeles Mayor Karen Bass has admitted to making mistakes and is asking voters for another chance — outlining to The California Post her plan to boost police hiring and clean up street homelessness in the city.
🔮 Nithya Raman’s campaign is firing back at a political group trolling her homelessness record with fake real estate signs, a rundown RV and an AI phone line impersonating the mayoral hopeful.
🔮 Billionaire developer Rick Caruso is backing his former political rival, Mayor Karen Bass, just eight days before Election Day, blasting challenger Nithya Raman’s plans for the LAPD as “reckless and dangerous.”
🔮 But despite their misgivings, Californians appear set to hand Democrats another four years in charge.
🔮 With just 11 days before voters decide the fate of Measure FD, Councilwoman Traci Park and fellow councilmembers pressed Fire Chief Jaime Moore over how the department would spend the cash, fix fire stations and get more firefighters on the streets without wasting taxpayer dollars.
🔮 Nearly eight years later, he is still living in a cramped, 350-square-foot guesthouse that survived the blaze, unable to afford the estimated $2 million it would now cost to rebuild his home.
🔮 An LA nonprofit bankrolled with millions in taxpayer funds through mayoral candidate Nithya Raman’s eviction-defense program more than tripled its revenue in five years, even as reported housing and eviction-defense spending plunged, a California Post investigation found.
Also by Jamie Paige
Nothing else under this byline is closely related to this article, so these are simply their most recent.
All 33 articles by Jamie Paige →

Topics

California Post IRS LAFLA Post The Legal Aid Foundation of Los Angeles

Subjects

LAFLA ORG · 11× Feldstein Soto PERSON · 3× Nithya Raman PERSON · 2× Post ORG · 2× California Post ORG · 1× Hydee Feldstein Soto PERSON · 1× IRS ORG · 1× Stay Housed LA ORG · 1× The Legal Aid Foundation of Los Angeles ORG · 1× the City of Los Angeles GPE · 1×

Narrative

An LA nonprofit bankrolled with millions in taxpayer funds through mayoral candidate Nithya Raman’s eviction-defense program more than tripled its revenue in five years, even as reported housing and eviction-defense spending plunged, a California Post investigation found.
framing: assertive · carried by 1 article(s) · first seen 2026-10-17
🔮 An LA nonprofit bankrolled with millions in taxpayer funds through mayoral candidate Nithya Raman’s eviction-defense program more than tripled its revenue in five years, even as reported housing and eviction-defense spending plunged, a California Post investigation found.

Claims (26 extracted, 5 hedged)

An LA nonprofit bankrolled with millions in taxpayer funds through mayoral candidate Nithya Raman’s eviction-defense program more than tripled its revenue in five years, even as reported housing and eviction-defense spending plunged, a California Post investigation found. asserted
investigation → bankroll → years
The Legal Aid Foundation of Los Angeles (LAFLA) saw its annual revenue soar from $17.6 million in 2019 to $58.6 million in 2024, while its net assets doubled to nearly $44 million, according to its IRS returns. uncertain
assets → see → returns
But City Attorney Hydee Feldstein Soto’s office found that LAFLA’s reported housing and eviction-defense spending plunged from $17.6 million in 2022 to $4.4 million in 2024. asserted
spending → find → 2024
Feldstein Soto is now demanding a full audit, warning that $55 million to $87 million in city and county funding cannot be reconciled with the nonprofit’s public financial records. asserted
million → demand → records
LAFLA fiercely disputes the findings, insisting every dollar is accounted for. asserted
dollar → dispute → findings
The figures provide a closer look at the nonprofit’s finances a day after The Post reported on the City Attorney’s Oct. 9 findings, which raised questions about years of taxpayer-funded contracts. asserted
which → provide → contracts
“Taxpayers deserve transparency and accountability and to know that their money is being used as intended, in this case to protect vulnerable tenants at risk of unlawful detainers in the City of Los Angeles,” Feldstein Soto told The Post Thursday. asserted
Soto → deserve → Angeles
LAFLA helps operate Stay Housed LA, a city and county program providing free legal assistance to renters facing eviction. asserted
LAFLA → operate → eviction
The program is a signature achievement for Councilmember Nithya Raman, who is challenging Mayor Karen Bass in the Nov. 3 election and has made tenant protections a centerpiece of her campaign. asserted
protections → challenge → campaign
The council approved a $177 million tenant-protection contract with a 12-1 vote on March 10, following a closed-door briefing with Feldstein Soto, as previously reported by The Post. asserted
council → approve → Post
$106.6 million of that was earmarked for LAFLA over three years. asserted
million → earmark → years
“Graffiti contractors are required to provide more documentation just to get paid,” Councilmember Monica Rodriguez warned during the debate. asserted
Rodriguez → require → debate
The financial questions stretch back to LAFLA’s original $7 million eviction-defense contract in 2021, awarded without competitive bidding under a pandemic emergency exception. asserted
questions → stretch → exception
According to the City Attorney’s report, nine amendments and extensions eventually pushed that contract beyond $90 million, without the city obtaining or enforcing all the detailed financial reporting required under the original agreement. Of LAFLA’s $58.6 million in revenue in 2024, approximately $54.1 million came from government contracts, accounting for more than 92%. uncertain
million → accord → %
The nonprofit also reported $58.9 million in total expenses that year and nearly $44 million in net assets. asserted
nonprofit → report → assets
The latest publicly available federal tax return reviewed covers 2024. asserted
return → review → 2024
A 2025 Form 990 was not available, meaning the City Attorney’s analysis of tax-return spending focuses on earlier years. asserted
analysis → mean → years
City and county governments provided LAFLA approximately $103.8 million between 2020 and 2024, according to Feldstein Soto’s Oct. 9 report. uncertain
governments → provide → report
During those same five years, LAFLA’s tax returns reported $48.9 million in spending under housing and eviction defense, according to the City Attorney’s analysis. uncertain
returns → report → analysis
That spending peaked at $17.6 million in 2022, fell to $8.9 million in 2023 and dropped again to $4.4 million in 2024, the report states. asserted
report → peak → 2024
The City Attorney calculated a potential discrepancy of $54.9 million to $86.6 million between government funding and spending disclosed under the categories examined. asserted
Attorney → calculate → categories
LAFLA has pushed back against those conclusions. asserted
LAFLA → push → conclusions
Barbara Schultz, the nonprofit’s director of housing justice, previously called the City Attorney’s claims “inaccurate and misleading,” maintaining that the organization answered numerous requests for information and submitted monthly reports to the city’s Housing Department. She also said that attorney-client confidentiality prevents LAFLA from releasing certain information about the tenants it represents. uncertain
it → call → tenants
Housing Department officials have also defended the nonprofit, saying that it satisfied their requests for financial information. asserted
it → defend → information
Despite the ongoing dispute, LAFLA’s new $106.6 million city contract has been signed, allowing funding to move forward. Feldstein Soto maintains that additional documentation is still needed to reconcile the public funding with the nonprofit’s reported spending. asserted
documentation → sign → spending
Her report calls for a full audit but does not identify who will conduct it or when it will begin. asserted
it → call → it
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