Los Angeles seeks control over homelessness funding due to mismanagement

Los Angeles officials are taking steps to regain control of homelessness funding. This decision follows two audits that criticized the Los Angeles Homeless Services Authority (LAHSA) for poor spending practices and a lack of transparency. The audits revealed issues like poor record-keeping and delayed payments to service providers. On Tuesday, the LA City Council voted unanimously to ask staff to explore ways to bypass LAHSA and directly work with homeless service providers. LAHSA was established in 1993 to distribute funds for shelters and food programs. It currently manages an annual budget of about $875 million. The homelessness crisis in Los Angeles is apparent, especially in areas like Skid Row, where many people live in makeshift shelters. A recent survey showed over 75,000 people are homeless in LA County on any given night. California has nearly one third of the homeless population in the U.S. Mayor Karen Bass, who prioritizes tackling homelessness, did not comment on the recent council vote. City Councilmember Monica Rodriguez, who pushed for the motion, stated that the city should have cut ties with LAHSA years ago, calling their financial management an "egregious breach of taxpayer trust." The county's Board of Supervisors will vote on April 1 to consider shifting $350 million in taxpayer funds from LAHSA to a new county department focused on homelessness. This would allow LAHSA to continue some programs required by federal law. Despite the audits, LAHSA reported a potential decrease in the homeless population based on preliminary findings from January's count. They stated that there has been a decline in unsheltered homelessness in the past two years. Final results from the 2025 count are expected later this spring, and the agency believes they are moving in the right direction to address homelessness.