politics
HUD Suspends Over $200 Million in Funding to Los Angeles Homeless Services Authority
The Department of Housing and Urban Development suspended more than $200 million in federal funding to the Los Angeles Homeless Services Authority on June 11 while it investigates fraud, mismanagement, and waste. The action follows years of audits and complaints about the agency's oversight of federal homeless assistance programs.
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The agency manages federal homeless assistance funding for the Los Angeles region. HUD said the suspension targets the Continuum of Care program, which supports nonprofit providers and local governments working to end homelessness.
HUD audits dating back to 2001 have identified repeated issues with LAHSA's oversight. Problems included failures to monitor grantees, payment of ineligible expenses, and weak financial management. A management review conducted during litigation found that LAHSA lacked basic records on payments and service delivery.
State auditors in Louisiana encountered resistance when seeking records from the New Orleans regional homelessness agency. That agency received $38 million in federal funds in 2024. Several states including Utah, Idaho, Arizona, and Oklahoma have introduced legislation aimed at increasing transparency in homeless services spending.
HUD has also announced new performance standards for programs receiving federal homelessness funds.
