LOS ANGELES — In a significant move, Los Angeles officials have initiated steps to assume control over hundreds of millions of dollars designated for addressing homelessness issues. This decision arises from two critical audits revealing that the Los Angeles Homeless Services Authority (LAHSA) has failed to manage these funds with proper accountability and transparency.
Recent audits have highlighted issues of inadequate record-keeping within the agency, which have prevented LAHSA from effectively monitoring spending and confirming the provision of contracted services. Problems identified included delayed invoice payments, insufficient contract oversight systems, and unexplained $5 million cash advances to service providers.
The LA City Council responded by unanimously passing a motion directing staff to produce a report on how Los Angeles might bypass LAHSA and directly engage with homeless service providers. This agency, formed in 1993 following a lawsuit addressing public fund allocation issues, manages funds related to shelters, food assistance, and various services for the homeless. Its annual budget stands at approximately $875 million.
Visible signs of the homelessness crisis are evident throughout downtown Los Angeles, especially in areas like Skid Row where makeshift shanties span entire city blocks and even encroach upon spaces outside City Hall. Suburban regions are also encountering similar issues, with encampments proliferating under freeway overpasses. As of a 2024 survey, over 75,000 people are homeless across LA County on any given night.
California as a whole represents nearly one-third of the United States’ homeless population. Los Angeles Mayor Karen Bass, who prioritizes combatting homelessness, has yet to comment on the council’s recent vote. Since 2023, Bass ally Va Lecia Adams Kellum has served as CEO of LAHSA, holding that role for the period scrutinized by auditors.
Councilmember Monica Rodriguez, who introduced the recent measure, asserts that the city should have severed ties with LAHSA long ago. She criticized the agency’s inability to account for its funded work, considering it “an egregious breach of taxpayer trust.” Rodriguez also proposes establishing a new city department responsible to both the council and the mayor, aimed at developing and managing homeless programs.
Although LAHSA did not directly respond to the criticisms post-vote, it pointed out a decline in the county’s unsheltered homeless population over the past two years. Their statement emphasized the necessity for all partners to align efforts and maintain momentum towards continuous improvement.
Simultaneously, on April 1, the Los Angeles County Board of Supervisors is slated to vote on a proposal to reallocate nearly $350 million in annual taxpayer funds from LAHSA to establish a new county department focused on homelessness. Supervisor Lindsay Horvath noted that recent audits underscore the pressing need for reform and enhanced accountability.
Should the proposal pass, LAHSA will continue receiving county support for a limited scope of programs mandated by the federal government, including the annual homeless census. This month, preliminary results from January’s census indicated a 5% to 10% decrease in unsheltered homelessness, following a trend of decline noted last year.
“When I first joined LAHSA, I declared our aim to reduce unsheltered homelessness within three years,” commented Adams Kellum in a statement aligned with the early numbers. “We’ve achieved this within two years.” The final figures from the 2025 count are scheduled for release in May or June, with initial data suggesting LA County is advancing in addressing homelessness.