The Department of Housing and Urban Development (HUD) announced the immediate suspension of the Los Angeles Homeless Services Authority (LAHSA), the lead agency for the city’s homelessness response, citing financial irregularities and program mismanagement.
In a statement, HUD noted that the Los Angeles Continuum of Care, led by LAHSA, received nearly $1 billion in federal funding dollars over the last five years. However, the department cited multiple examples of misused federal funds, false certifications, conflicts of interest, and a 2025 assessment where LAHSA failed to provide documentation to verify the existence of nearly 2,300 housing sites for which it was responsible.
HUD noted that while federal homelessness aid to Los Angeles increased 178% since the department launched its Housing First policy in 2013, homelessness in Los Angeles increased 100% and free housing for the city’s homeless increased 212%. However, the Continuum of Care funding per homeless person in Los Angeles only increased 39%.
“Under President Trump’s leadership, HUD will fund results, not corrupt failure or the homeless industrial complex,” said HUD Secretary Scott Turner. “Year after year, hundreds of millions of taxpayer dollars were funneled to LAHSA with little accountability. Meanwhile, homelessness skyrocketed. Taxpayers will no longer bankroll an organization that puts its own self-interests ahead of the Americans it was created to serve.”
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