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Homeless services collapse? California agency facing $656 Million pullout as CEO resigns

Jacob Shelton April 7, 2025

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Miss Smith, who is wheelchair bound, and Elizabeth Singletary talk about their lives after being displaced from the homeless encampment off of Crosier Street in Akron on Friday, April 4, 2025.

Los Angeles, California – After a tumultuous week that saw the Los Angeles Homeless Services Authority (LAHSA) lose the bulk of its county funding, the agency’s CEO, Va Lecia Adams Kellum, announced her resignation Friday, marking a major turning point for the region’s largest homelessness response agency.

Adams Kellum, who joined LAHSA in January 2023 after serving in Mayor Karen Bass’ administration, had been battling to preserve the agency’s nearly $350 million in annual county support. But earlier this week, Los Angeles County supervisors voted to redirect that funding to a newly formed county department, citing a need for greater accountability and oversight.

In her resignation letter, Adams Kellum said she was proud of her work to reform the agency and highlighted recent data showing a decline in unsheltered homelessness under LAHSA’s watch. “Ensuring a seamless handover is a top priority, and I am committed to a 120-day transition period, or longer if needed,” she wrote.

The announcement follows a series of damaging audits revealing severe financial mismanagement and lack of oversight at LAHSA. In March, U.S. District Judge David O. Carter labeled the agency’s failure to track billions in spending “a slow train wreck.” Public confidence was further shaken after LAist reported in February that LAHSA had approved a $2.1 million contract with a nonprofit where Adams Kellum’s husband holds a senior position, despite her claims of recusal.

The city of Los Angeles, which contributes another $306 million annually to LAHSA, is also considering withdrawing its funding. Still, some local leaders, including Mayor Bass and Councilmember Nithya Raman, praised Adams Kellum’s leadership and urged caution.

“Dr. Adams Kellum has saved thousands of lives in Los Angeles,” said Bass, calling her an “agent of change.” Raman echoed the sentiment, warning that withdrawing support now would hurt the most vulnerable.

Others were less charitable. Councilmember Monica Rodriguez blasted the agency for “zero transparency” and a lack of consequences for poor performance. L.A. County Supervisor Lindsey Horvath, who led the charge to defund LAHSA, said the agency needed “accountability measures that set future leaders up for success.”

Even as LAHSA faces a diminished future, officials agree it will retain some core responsibilities, including managing the annual homeless count and maintaining shared data systems. However, without control over hundreds of millions in funding for services and outreach, its influence over L.A.’s homelessness crisis will likely be significantly reduced — along with its workforce.

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