LA homeless agency throws in the towel as scramble begins to manage key programs

Los Angeles’ embattled homelessness agency is throwing in the towel on four major roles it has controlled for decades, as pressure from the Trump administration and local officials continues to mount.The Los Angeles Homeless Services Authority Commission voted Tuesday not to participate in the LA Continuum of Care Board’s request-for-qualifications process for the region’s lead homelessness agency.That means LAHSA will not seek to retain responsibility for the annual application for federal homelessness funding, the Homeless Management Information System, the annual point-in-time count or the coordinated-entry system.Los Angeles County and the city are now competing to take over the responsibilities.The county wants all four roles, while the city is seeking at least two.The bombshell decision comes amid accusations from the Trump administration and city and county officials that LAHSA mismanaged taxpayer dollars and failed to provide transparency.Just five weeks ago, in August 2026, Robert F.Kennedy Jr.
traveled to Southern California with HUD Secretary Scott Turner to launch a fiery public attack on LA’s homelessness system.The federal government is also investigating LAHSA’s use of federal funds amid allegations of fraud and widespread mismanagement.The agency has received more than $1 billion in federal funds since 2021, including $220 million in 2024.The funding fight has already landed in federal court.In June, HUD suspended further funding to LAHSA until officials could demonstrate adequate safeguards to protect taxpayer dollars.A Los Angeles federal judge blocked that move last month, finding that an abrupt loss of funding would jeopardize housing and services for more than 11,000 people across the region.US District Judge David Carter’s partial preliminary injunction allowed LAHSA access to federal homelessness funding for fiscal year 2026.Nearly $241 million already earmarked by Congress for the Los Angeles region, as well as immediate future f...