LA Homelessness Agency Cedes Key Functions Amid Federal and Local Pressure

The Los Angeles Homeless Services Authority (LAHSA) has decided to relinquish four critical functions it has overseen for decades, including managing federal funding applications, the Homeless Management Information System, the annual point-in-time count, and the coordinated-entry system. The decision came Tuesday when the LAHSA Commission voted against participating in the LA Continuum of Care Board's request-for-qualifications process for the region's lead homelessness agency.

This move signifies a major shift in the management of homelessness services in Los Angeles, as both the county and the city are now vying to take over these responsibilities. The county aims to assume all four roles, while the city is seeking to manage at least two of them.

The decision follows intense scrutiny from the Trump administration, as well as city and county officials, who have accused LAHSA of mismanagement of taxpayer funds and a lack of transparency. In August, Housing and Urban Development (HUD) Secretary Scott Turner, alongside Robert F. Kennedy Jr., publicly criticized Los Angeles' homelessness system.

The federal government has also launched an investigation into LAHSA's use of federal funds, citing allegations of fraud and widespread mismanagement. Since 2021, the agency has received over $1 billion in federal funding, including $220 million in 2024.

In June, HUD suspended further funding to LAHSA, requiring the agency to demonstrate adequate safeguards for taxpayer dollars. A federal judge initially blocked this suspension, citing the potential disruption to services for over 11,000 individuals. However, the 9th U.S. Circuit Court of Appeals overruled that injunction last week, increasing uncertainty surrounding LAHSA's role.

Los Angeles County has already established a new homelessness department and redirected $300 million from LAHSA. City officials, including Mayor Karen Bass and Councilwoman Nithya Raman, have also expressed a desire for Los Angeles to establish an independent city-run entity to manage homelessness services.

LAHSA stated that its decision will not impact its ongoing work with the Continuum of Care or its support for the city through the end of fiscal year 2026-27, as its current agreements for program and contract management extend through June 30, 2027. Applicants were required to notify the Continuum of Care Board of their intent to apply by Tuesday, with full applications due September 25. Selections are expected to undergo review by HUD and the federal court.

The stakes are significant, given the scale of homelessness in the region. California has approximately 182,000 homeless individuals, with Los Angeles County having 73,000 and the city itself reporting over 45,000, a 3.4% increase from the previous year.