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Los Angeles Misses July 1 Deadline to Assume Control of LAHSA Funds
Los Angeles leaders missed their July 1 deadline to begin taking control of hundreds of millions in taxpayer dollars managed by the Los Angeles Homeless Services Authority. The delay follows a city directive and consultant hiring plan that have both stalled. New York Post reported the developments.
Jul 13, 7:12 PM·2m read1 source
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Los Angeles leaders missed their July 1 deadline to begin taking control of hundreds of millions of taxpayer dollars managed by the Los Angeles Homeless Services Authority. The agency was created jointly by the city and county in 1993 and is governed by a commission with half its members appointed by the Los Angeles mayor and the other half by the county’s five supervisors.
In April Mayor Karen Bass warned that years of reports and studies had produced little action and urged City Hall to move quickly as Los Angeles County prepared to leave LAHSA.
Bass’s directive laid out a 30-, 45-, 60- and 90-day timeline for the city to begin overhauling how Los Angeles responds to homelessness. In April the City Council’s Homelessness and Housing Committee voted to hire an outside consultant to analyze how Los Angeles could begin taking over homelessness programs now run by LAHSA. The committee is chaired by Councilmember Nithya Raman.
A July 1 deadline was set for hiring the consultant but no one has been hired for the roughly $450,000 role. The latest recommendation pushes completion of the consultant work to December 2027. The Trump administration suspended nearly $200 million in federal homelessness funding flowing through LAHSA while HUD’s inspector general investigates allegations of financial mismanagement, conflicts of interest and poor contract oversight.
Federal officials say LAHSA failed to verify nearly 2,300 housing sites it was supposed to oversee and found roughly 70 percent of contracts tied to those sites showed no reported spending during the previous year. A city audit found about $513 million budgeted for homelessness programs went unspent because of staffing shortages and outdated technology systems.
