Santa Monica Candidate Derrick Townsend Decries New LED Billboard's First Ad for Homelessness Nonprofit

Santa Monica council candidate Derrick Townsend highlighted what he called an ironic first advertisement on one of the city’s newly installed downtown LED billboards: a promotional display for the homelessness services nonprofit The People Concern.

Townsend, who is running for Santa Monica City Council in 2026, posted a nighttime photo of the large curved digital board on August 29, 2026. The ad features two people in conversation and the claim that “92% of the people we house NEVER experience homelessness AGAIN,” along with the organization’s website.

“The first ad on Santa Monica’s new LED board is for a homelessness nonprofit. You can’t make this up,” Townsend wrote. The post drew tens of thousands of views and was later quoted by reality television personality and Los Angeles political figure Spencer Pratt.

Pratt wrote: “It’s ALL a scam. Every dime of the homeless industrial complex is money laundering and people are getting rich off of misery.”

The LED displays are part of a recently approved digital advertising district along the Third Street Promenade and nearby locations. City officials authorized the boards to generate revenue, display civic announcements, and promote Santa Monica. Development agreements cover multiple large-format screens, some wrapping building corners.

The People Concern is a long-established Los Angeles County nonprofit that provides housing, outreach, and services for people experiencing homelessness. It operates access centers, including one in Santa Monica, and runs outreach teams across the region. Financial filings show the organization holds well over $100 million in assets and receives the large majority of its revenue from government grants and contracts.

Santa Monica has faced persistent homelessness even as the broader Los Angeles County count has shown some declines in recent years. Local counts recorded an increase in 2024. The city has also grappled with budget strain, empty storefronts, and public-order issues downtown.

Townsend, whose campaign emphasizes higher standards for the city, used the billboard ad to draw attention to what he sees as a mismatch between public messaging and conditions on the ground. The episode quickly circulated among critics of current homelessness spending and programming in coastal Los Angeles.

The People Concern, which gets over 85% of its $113–117 million annual revenue from government grants, faced online criticism for its ad on the city's new LED displays, with users comparing it to Seinfeld's fake 'Human Fund' charity. Critics like Spencer Pratt and Ross Gerber labeled it part of a 'homeless industrial complex' involving high executive pay up to $301,000 and questioned the use of taxpayer dollars, while calling for audits. Supporters note the group's essential work in housing and outreach, but the debate highlights tensions over transparency as Santa Monica rolls out the billboards to boost revenue.