The Los Angeles County Board of Supervisors voted unanimously late on April 1 to pull hundreds of millions of dollars in funding from the area’s homeless services agency.
In an effort to banish homelessness, Los Angeles County has been funneling some of its tax revenue to one of its largest agencies, the Los Angeles Homeless Services Authority (LAHSA).
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The LA Times recently reported that the board will no longer be funding more than $300 million to the agency, and instead will be moving it to a new county agency, a transition that will take place over the next 16 months.
The shift, however, doesn’t go without criticism.
“What I don’t understand is the rush of the proposed strategy of moving all services with no real plan in place,” Nathaniel VerGow, deputy chief programs officer at LAHSA told the board. “A timeline is not a plan.”
More details on the ruling
Created in 1993, LAHSA aimed to help address homelessness in the area, and is the lead agency in the Los Angeles Continuum of Care program that’s funded by the Department of Housing and Urban Development (HUD). The program offers housing, shelter and other related services for the homeless through its 100 partner agencies.
In the past several months, LAHSA has faced harsh criticism because of several audits showing it didn’t track tens of millions of dollars in spending for its programs and services, according to CBS News. A recent lawsuit against the city and county of LA promoted one of the most recent audits released, which showed in detail the lack of oversight by LAHSA.
Va Lecia Adams Kellum, chief executive of LAHSA, ended up resigning several days after the vote took place, according to LAist.
After telling LAist that she followed protocols, the publication found that she signed a deal that paid $2.1 million from taxpayer money to a nonprofit where her husband worked as senior leadership.
The ruling was intended to offer more accountability and oversight over how taxpayer funds are used to help the homeless.
As a result, the funding will be transferred to a new county homeless agency that would receive the over $300 million funding from the Measure A sales tax by July 2026.
By January 1, 2026, around 700 county employees will be transferred to work at the new agency. And by July 2026, the final few hundred employees from LAHSA will also most likely join.
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What this could mean for homeless services in LA
The recent ruling means the future of LAHSA could be rocky.
In an official statement, Supervisor Lindsey Horvath said, “Our Board is taking full responsibility for the tax dollars we collect and distribute, ensuring transparency, efficiency, and real results for those we serve.”
However, the decision has been met with major concern.
LA Mayor Karen Bass said the moving of taxpayer dollars could create more bureaucracy and not actually help the unhoused, she wrote in a letter sent to the Los Angeles County Board of Supervisors before the vote.
“Dismantling LAHSA will deprive the City of Los Angeles of essential resources, including recent voter-approved Measure A funding, and would severely stunt the City’s ability to oversee existing programs that provide holistic solutions to individuals with complex needs,” the letter stated.
LA council members also criticized the move, agreeing with the mayor.
“I believe strongly (Measure A) voters may not have supported it if they knew these dollars would be moved into the county without input and partnership from the city,” City Councilmember Nithya Raman said at the meeting where the vote took place.
Perhaps, the ruling will lead to more oversight, transparency and help for the unhoused, despite LAHSA’s unknown future.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
