Los Angeles’ embattled homelessness agency is relinquishing four major responsibilities it has managed for decades, as scrutiny from the Trump administration and pressure from city and county officials intensify.
The Los Angeles Homeless Services Authority Commission voted Tuesday against taking part in the LA Continuum of Care Board’s request-for-qualifications process to select the region’s lead homelessness agency.
As a result, LAHSA will not seek to continue overseeing the region’s annual application for federal homelessness funding, its Homeless Management Information System, the yearly point-in-time homelessness count or the coordinated-entry system.
Los Angeles County and the city of Los Angeles are now competing to assume those duties.
The county is seeking all four responsibilities, while the city wants to take over at least two.
The stunning decision follows accusations by the Trump administration and local officials that LAHSA mismanaged taxpayer money and failed to operate with sufficient transparency.
The latest pressure arrived just five weeks ago, when Robert F. Kennedy Jr. traveled to Southern California with HUD Secretary Scott Turner to launch a blistering public criticism of Los Angeles’ homelessness response.
The federal government is also examining LAHSA’s handling of federal funds amid allegations of fraud and widespread mismanagement.
Since 2021, the agency has received more than $1 billion in federal funding, including $220 million in 2024.
The dispute over that funding has already moved into federal court.
In June, the Department of Housing and Urban Development suspended additional funding for LAHSA, saying the agency first needed to show that it had adequate safeguards in place to protect taxpayer dollars.
A Los Angeles federal judge blocked the suspension last month, ruling that an abrupt cutoff could threaten housing and support services for more than 11,000 people throughout the region.
US District Judge David Carter’s partial preliminary injunction permitted LAHSA to access federal homelessness funding for fiscal year 2026.
At stake is nearly $241 million that Congress has already designated for the Los Angeles region, along with immediate future funding for the following fiscal year.
But the 9th US Circuit Court of Appeals overturned Carter’s injunction last week, adding to uncertainty over whether LAHSA will remain eligible to coordinate housing and homelessness services across Los Angeles County.
The county has already created a new homelessness department and shifted $300 million away from LAHSA.
The city is taking similar action.
Mayor Karen Bass and Councilwoman Nithya Raman, who face each other in the Nov. 3 mayoral election, have both said Los Angeles needs to separate from LAHSA and establish an independent city-run entity.
Bass also declined an invitation to appear at a House hearing examining allegations involving the agency.
LAHSA says its latest decision won’t affect its work leading the Continuum of Care or supporting the city through the end of fiscal year 2026-27.
Its agreements with the city to manage programs and contracts run through June 30, 2027.
Applicants had until Tuesday to notify the Continuum of Care Board of their intent to apply.
Applications are due Sept. 25, with selections expected to be reviewed by HUD and the federal court.
The stakes are massive: California has nearly 182,000 homeless people, Los Angeles County has 73,000 and the city has more than 45,000 — a 3.4% increase from the prior year.
