Harold Hicks, who is homeless, rests at the Barton Springs Pool spillway on Tuesday April 30, 2024, with his only remaining belongings - a bicycle, blankets and two backpacks - the day after a police officer took almost all of his belongings.
Los Angeles, California – Los Angeles officials are taking steps to reclaim control over hundreds of millions of dollars in homelessness spending, citing two damning audits that exposed severe mismanagement by the Los Angeles Homeless Services Authority (LAHSA).
On Tuesday, the LA City Council unanimously approved a motion directing staff to explore how the city can bypass LAHSA and directly contract with homeless service providers. The decision comes after an audit earlier this month revealed widespread financial mismanagement within LAHSA, including poor record-keeping, late invoice payments, and a failure to track whether services were actually provided. A previous audit in November found the agency could not account for $5 million in cash advances given to five service providers.
Councilmember Monica Rodriguez, who introduced the motion, called for an overhaul of the current system, arguing that LAHSA has failed to properly manage taxpayer money.
“It’s now been verified by two audits that they cannot produce an account for the work that they are funded to do. And that, to me, is an egregious breach of taxpayer trust,” Rodriguez said. She also proposed the creation of a new city department that would be accountable to the mayor and council and responsible for overseeing programs for unhoused residents.
LAHSA, formed in 1993 as a result of a lawsuit settlement, is a joint city-county agency that coordinates the distribution of nearly $875 million annually for homeless services, including shelter and food programs. However, homelessness remains a growing crisis in Los Angeles, where an estimated 75,000 people live on the streets on any given night, according to a 2024 survey. The crisis is most visible in areas like Skid Row, where makeshift encampments line entire city blocks, but is also spreading into suburban neighborhoods and freeway underpasses.
California accounts for nearly a third of the nation’s homeless population.
Los Angeles Mayor Karen Bass, who has prioritized tackling homelessness, did not immediately comment on Tuesday’s vote. However, LAHSA CEO Va Lecia Adams Kellum, a close ally of Bass, has led the agency since 2023, including during the period covered by the audits.
The shakeup in LA’s homelessness strategy isn’t stopping at the city level. The Los Angeles County Board of Supervisors is set to vote on April 1 on a proposal that would redirect nearly $350 million in taxpayer funds from LAHSA to create a new county department focused on homelessness.
“With recent audits underscoring the urgent need for reform and stronger accountability, now is the time to implement long overdue change,” Supervisor Lindsay Horvath said.
LAHSA, in response to the audits, has pointed to recent declines in unsheltered homelessness, stating that its efforts have shown progress. The agency’s preliminary results from its January 2025 homeless count suggest a 5% to 10% decrease in unsheltered homelessness in the region, continuing a trend from the previous year.
The final results of the count are expected to be released in May or June.
