Los Angeles Explores Ending Funding Relationship With Homeless Services Authority Amid Scrutiny
The city of Los Angeles is moving towards potentially ending its funding relationship with the Los Angeles Homeless Services Authority (LAHSA), its last major funder, following years of audits, the withdrawal of LA County funds, and recent federal fraud charges…
Los Angeles, CA, September 18, 2026 —
The City of Los Angeles is reportedly considering a significant shift in its approach to homelessness services, initiating steps that could lead to the termination of its funding relationship with the Los Angeles Homeless Services Authority (LAHSA). LAHSA is currently the final major funder for the city’s homelessness initiatives.
This potential move follows a period marked by substantial challenges for LAHSA. The agency has faced years of audits, experienced the withdrawal of funds from Los Angeles County, and is currently dealing with recent federal fraud charges concerning funds managed by the authority. In parallel, LAHSA has also made decisions to stop managing the city’s annual homeless count and federal funding streams.
To navigate this complex situation and explore potential alternatives, the City of Los Angeles is proceeding with hiring a consultant. This expert will be tasked with studying and developing a comprehensive transition plan, outlining how services and funding could be managed differently should the city formally end its partnership with LAHSA.
The specifics of the consultant’s contract, the timeline for their study, and the exact nature of the potential funding disengagement were not detailed in the available information. The exact outcomes of the federal fraud charges and their impact on LAHSA’s operations and reputation remain subjects of ongoing developments.
LAHSA’s role has been central to coordinating homelessness services across Los Angeles County. The agency’s decision to relinquish management of the annual homeless count and federal funds signals a significant restructuring of its operational responsibilities.
The city’s decision to explore a transition plan indicates a move to gain more direct control or seek new partnerships in addressing the ongoing homelessness crisis within its jurisdiction.
Story summarized from the original created by Nick Gerda on laist.com, see more information here.
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