Los Angeles leaders failed to meet a July 1 deadline to begin taking control of hundreds of millions of taxpayer dollars managed by the Los Angeles Homeless Services Authority (LAHSA), marking another setback in the city's protracted effort to address its homelessness crisis.
The missed deadline is the latest in a series of challenges for LAHSA, an agency jointly created by the city and county in 1993. The agency is governed by a commission with members appointed by both the mayor and county supervisors. The city's plan, outlined by Mayor Karen Bass in April, aimed to review LAHSA, restructure its governance, and explore the city assuming responsibility for many of its programs.
Delays in Consultant Hiring
One of the initial steps, the hiring of an outside consultant to analyze the city's potential takeover of LAHSA programs, has stalled. The City Council's Homelessness and Housing Committee, chaired by Councilmember Nithya Raman, voted in April to hire a consultant for this approximately $450,000 role. However, no consultant has been hired, and the analysis has not begun. The latest recommendation now pushes the completion of this work to December 2027, a delay of nearly a year and a half.
Mounting Scrutiny on LAHSA
This delay occurs amid increasing pressure on LAHSA. The Trump administration previously suspended nearly $200 million in federal homelessness funding channeled through the agency while the Department of Housing and Urban Development's inspector general investigated allegations of financial mismanagement, conflicts of interest, and inadequate contract oversight. Federal officials cited LAHSA's failure to verify nearly 2,300 housing sites and issues with contract spending.
Furthermore, a city audit revealed that about $513 million budgeted for homelessness programs went unspent due to staffing shortages and outdated technology. Despite these findings, the city's latest budget approved an additional $358 million for LAHSA, a roughly 5% increase from the previous year.
Political Dynamics and Stalled Progress
The delays have also drawn attention to City Hall's internal processes. Councilmember Nithya Raman, who chairs the homelessness committee and is also challenging Mayor Bass in the upcoming mayoral race, canceled multiple committee meetings after launching her campaign, citing budget season and scheduling conflicts. Some colleagues have expressed frustration with the perceived lack of progress on homelessness proposals.
Councilwoman Monica Rodriguez has been critical of the city's continued partnership with LAHSA, arguing that the division of responsibility among multiple agencies leads to a lack of accountability. She has described the situation as being on a "merry-go-round from hell."
Raman's mayoral campaign has focused on homelessness, with pledges to reduce unsheltered homelessness significantly before the 2028 Olympics and implement reforms and stricter oversight.