Four months have passed since the Los Angeles City Council voted to consider withdrawing funding from the Los Angeles Homeless Services Authority, commonly known as LAHSA, in favor of establishing its own direct contracts with homeless service providers.
This decision followed closely on the heels of L.A. County’s decision to withdraw funding and create its own department focused on homelessness.
Despite the urgency expressed by various council members, a critical report detailing the logistics for this potential transition has been significantly delayed, leaving many stakeholders in uncertainty.
A city staffer indicated to LAist that the report would likely emerge by late April, but the timeline has since evolved without clarity.
“I’m eagerly awaiting these reports so that the council can reform the current system, including exploring the creation of a dedicated city Department of Homelessness,” Councilmember Monica Rodriguez noted in an email to LAist, highlighting her role in initiating the motion for the report.
Yet, the council has seen little progress or further discussion on this matter since the April vote,
with city officials anxiously monitoring the developments in the county’s own efforts.
Sharon Tso, the city’s chief legislative analyst, previously mentioned that the report should be available before the legislative recess, scheduled to end on July 29.
Councilmember Nithya Raman further instructed Tso to draft a separate report examining how the county’s establishment of a new homelessness department may influence the city’s existing contracts with LAHSA.
While the city set a 30-day deadline for this report, that period has lapsed, and Tso did not provide a new estimate for its completion.
“I have impressed upon our reporting departments the urgency of this, but the reality is even the county does not fully understand what this process will look like yet,” Raman commented, suggesting that the uncertainties surrounding the county’s department could be contributing to the delay.
The fate of LAHSA hangs in the balance following L.A. County’s decision to withdraw $300 million in funding on April 1.
This significant cut has plunged LAHSA into budget shortfalls, sparking layoffs and raising concerns about the agency’s capacity to deliver vital services to the unhoused.
Established in 1993 as a joint powers authority for both the city and county, LAHSA has been crucial in connecting individuals experiencing homelessness with housing, healthcare, education, and other resources.
The agency also conducts the annual point-in-time homeless count, which informs local data on homelessness trends throughout the region.
Historically, funding for LAHSA has come from a mix of county, city, state, and federal sources, with its budget for the last fiscal year reaching $875 million, of which 40% stemmed from the county and 35% from the city.
The county’s decision to cut funding from LAHSA stemmed from increased scrutiny over the agency’s operational practices.
A 2024 audit, requested by L.A. County Supervisor Lindsey Horvath, revealed inadequacies in oversight of the homelessness programs funded by LAHSA, including failures to monitor service provision and frequent delays in payments to service providers.
These findings prompted the county Board of Supervisors to revoke LAHSA’s future contracts, as identified systemic issues raised concerns about the effectiveness of current service delivery mechanisms.
“The audit findings make clear the structure we have for service delivery is not working,” Horvath stated, advocating for greater accountability.
Following the county’s decision, LAHSA’s then-executive director, Va Lecia Adams Kellum, resigned soon after funding was withdrawn.
In response to these overarching concerns, the L.A. City Council voted unanimously to examine the feasibility of bypassing LAHSA to directly contract with homeless service providers.
Adding to the scrutiny, a separate audit carried out by U.S. District Judge David O. Carter uncovered similar issues, emphasizing the absence of “financial accountability” that complicated efforts to track spending accurately.
This finding triggered a federal investigation into homelessness spending across California, including L.A., with Carter criticizing the city’s failure to provide adequate housing for unsheltered individuals.
As officials await the legislative analyst’s report, various council members shared their perspectives on the path forward regarding LAHSA’s future.
Raman highlighted the need for a careful approach to ensure that the city’s transition away from LAHSA does not impede service delivery for the unhoused.
“The county is moving extraordinarily fast, and I’m scared of how quickly they’re moving,” she expressed. “I’m scared about the impacts for people experiencing homelessness.”
Other council members conveyed a range of opinions on maintaining support for LAHSA while recognizing the necessity of reform.
Councilmember Ysabel Jurado, representing neighborhoods close to downtown L.A., asserted, “We can’t keep doing the same things and expect different results — and that means holding all partners, including LAHSA, accountable.”
She emphasized the importance of thoughtful deliberation for any structural changes in order to minimize disruption for those served by the current system.
Similarly, Councilmember Hugo Martinez, who covers areas including Hollywood and Echo Park, expressed that improving homelessness services should take precedence, regardless of whether LAHSA’s structure remains in place.
“I’m keeping an open mind, but our priority is getting people housed rather than preserving or promoting broken systems,” he stated clearly as the city grapples with its evolving approach to addressing homelessness.
In light of these ongoing discussions and developments, a spokesperson for Councilmember Adrin Nazarian, who represents North Hollywood and surrounding neighborhoods, stated that he would refrain from commenting until the chief legislative analyst’s report is released.
As Los Angeles navigates its complex landscape of homelessness services and challenges, all eyes remain on the upcoming reports that will shape the future of LAHSA and the city’s approach to addressing one of its most pressing issues.
image source from：laist
