HUD Suspends Los Angeles Homeless Services Authority From Federal Funding Programs

U.S. Department of Housing and Urban Development suspended the Los Angeles Homeless Services Authority from participating in federal funding programs while its Office of Inspector General conducts an investigation. HUD sent a letter to LAHSA board Chair Wendy Greuel and CEO Gita O’Neill announcing the suspension, which bars the agency from federal funding competitions until the investigation concludes.

The agency has received nearly $1 billion in federal funding since 2021 and nearly $200 million through the Continuum of Care program last year. A federal judge concluded last year that LAHSA committed “obvious fraud” by requesting funding for an 88-bed shelter operating at roughly half capacity. The judge considered placing the agency into receivership.

The agency was unable to verify the existence of nearly 2,300 housing sites for which it was responsible, and 70 percent of the contracts for those sites did not disclose any expenses over the prior year. Public audits found LAHSA routinely paid service providers late and had poor record keeping, including $5 million in cash advances sent to five service providers.

In November 2024 the City Controller’s Office found LAHSA failed to spend $513 million in public funds budgeted in fiscal year 2024.

Los Angeles County withdrew its funding from LAHSA and moved it to a newly created county agency. In April LAHSA laid off 284 people. LAHSA reported that countywide homelessness fell for a second straight year in 2025.

As of last year there were an estimated 72,000 unhoused people in Los Angeles County.