Kenneth Rivere, 55, stores the care packages given to him by the Continuum of Care staffers conducting a Point-in-Time Count in Jackson, Miss., Madison, Jan. 27, 2025. Rivere, a veteran, said this is the first time he's been homeless. A PIT Count is a count of sheltered and unsheltered people experiencing homelessness in January.
Los Angeles, California – After three decades of jointly managing California’s largest homelessness crisis, Los Angeles County is dismantling its long-standing partnership with the city — a dramatic move that reflects growing tensions statewide over how local governments handle homelessness.
The Los Angeles Homeless Services Authority (LAHSA), created in the 1990s to ensure collaboration between city and county leaders, is being gutted after scathing audits revealed failures in accountability and financial oversight. The county will pull over $300 million in funding and more than 700 staffers from the agency to form a new, independent homelessness department — a decision made despite strong objections from LA Mayor Karen Bass.
The shakeup raises urgent questions about the fate of critical programs serving over 75,000 unhoused people across LA County, and it highlights a deeper, statewide issue: California’s cities and counties often struggle to work together, even though their collaboration is essential. Cities generally provide shelter and housing, while counties oversee mental health and addiction services — both crucial to getting people off the streets.
But instead of uniting, jurisdictions are increasingly at odds. In San Diego, a 150-bed shelter is in jeopardy as city and county leaders clash over a $2 million utility issue. In Turlock, in the San Joaquin Valley, city officials refused to support a county-funded shelter over concerns about public health impacts, effectively blocking nearly $270,000 in aid. Gov. Gavin Newsom called the move a “moral failure.”
Sen. Catherine Blakespear of Encinitas introduced a bill to force counties to cover half the cost of city-run shelters — a move that counties pushed back on until the requirement was removed.
The situation in LA exemplifies the stakes. Although the joint agency helped reduce unsheltered homelessness in the city by 10% last year, audits uncovered serious mismanagement. The agency’s director resigned, and a federal task force launched a fraud investigation.
City leaders fear the overhaul could derail progress. In a letter opposing the split, Mayor Bass and Councilmember Nithya Raman warned it “runs the serious risk of worsening our homelessness crisis.” Raman said programs that rely on both city and county funds — such as a $170 million rental subsidy initiative — are now in limbo.
County officials say the new agency will improve efficiency and accountability by consolidating services under one roof. “The city will be as involved as they choose to be,” said Supervisor Lindsey Horvath, who led the charge for change.
Meanwhile, other cities echo LA’s frustrations. San Jose Mayor Matt Mahan says his city can’t keep building shelters unless Santa Clara County steps up with support services. “We can’t scale anymore,” Mahan said. “Which means we leave thousands of people outside.”
