According to a report from the Associated Press, Los Angeles’ $1.2 billion dollar homeless program has hit a few snags: costs are ballooning and units to house the homeless are expected to cost as much as $837,000 each, according to a city audit.

“About 1,200 units have been completed since voters approved the spending in 2016, which was then a centerpiece in a strategy intended to get thousands of people off the streets. But the tally of units built so far is ‘wholly inadequate’ in the context of the homeless crisis, said the audit issued by city Controller Ron Galperin,” AP reports.

The homeless population in Los Angeles is now more than 40,000.

The program “is still unable to meet the demands of the homelessness crisis,” Galperin says. The pace is sluggish and costs continue to rise — in some cases to “staggering heights.”

Mayor Eric Garcetti disputes that the program is off course, sharing his thoughts on Twitter

“Let’s be clear: Prop. HHH is producing more units than promised, at a lower cost than expected. There are already 1,200 units online providing critical housing and services. And HHH will deliver over 10,300 units of supportive and affordable housing by 2026.”

“While future plans have not been finalized, building tens of thousands of additional units using the same model will likely cost billions of dollars and will take far too long to match the urgency of the ongoing homeless emergency,” Galperin’s audit concluded. The city must “find ways to scale up faster and cheaper projects.”

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